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Posted by oscar123 on January 23rd, 2017
Many think that choosing the best home renovation loan is all about just looking for the lowest renovation loan interest rate. Aside from interest rates, here are important facts that one needs to consider:
The amount that you should loan depends on your ability to pay
Some people tend to take the maximum loanable amount that banks offer without considering if they can afford it or not.
To calculate the amount of loan that you can afford, add up all your mortgage payments, including the monthly instalments of the home renovation loan that you wish to take up. Your total monthly mortgage payments should not exceed 30% of your total monthly income.
The shorter the loan tenure, the better
Typically, renovation loan tenures range from 4 to 5 years. Anything more than this may bring some inconveniences in the future. Keep in mind that long-term debt causes restrictions in cash flow.
Monthly rest rates could save you more money
Home renovation loan rates in Singapore may either be fixed or variable. Fixed rates can be more attractive at first glance because they are much lower. However
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If you’re looking for a bank that can give you competitive renovation loan rates and flexible financing options, apply for a home renovation loan with a Singapore’s leading bank today.
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