To most people, renovation is part and parcel of the whole home buying process. Whether you’re buying brand new or second-hand, chances are, you’re going to spend quite a bit to make the home, well, you. Unfortunately, home renovation is also expensive. Depending on your taste and preference, the process of turning your house into a dream home could easily go up to five figures, or more.
If you’re thinking about renovating but don’t have the cash to do so, allow iMoney to show you 2 common ways you could secure financing from the banks for the purpose of renovating or refurbishing a property.
If you’re thinking about renovating but don’t have the cash to do so, allow iMoney to show you 2 common ways you could secure financing from the banks for the purpose of renovating or refurbishing a property.
Personal loan is probably the first and most obvious choice if you need cash to renovate your home. In Malaysia, all major banks offer some form of personal loan, albeit with different terms and conditions; so getting one that fits your requirement may prove to be quite a challenge.
A good simple approach in using personal loan to finance your home renovation is to first decide on the amount you need, then make the necessary comparison to find a bank that offers you the lowest interest rate for that specific amount. To find the best personal loan rate, refer to any reliable online loan comparison table, so you don’t need to personally visit each and every bank.
For those who intend to apply for personal loans, take note that starting 5 July 2013, Malaysian banks can no longer grant you personal loans with repayment periods of more than 10 years, due to this new loan regulations imposed by Bank Negara Malaysia.
Need cash for renovation? Refinance your home loan and look for the best interest rate here.
2) Renovation Loans
A renovation loan is a loan product offered by banks for the specific purpose of renovating a property. In Malaysia, renovations loans do exist, though they are usually offered only to home loan borrowers of the same bank or bundled together with a home loan package.
At current, these are some of the notable renovation loans* you may wish to consider:
- OCBC Bank: offers a Renovation & Refurbishment Loan that comes with no monthly maintenance fees, flexible repayment period of up to 10 years or 70 years old (whichever is earlier) and the option to start repaying instalments up to one year after loan disbursement. It is exclusive to OCBC Bank customers.
- Alliance Bank: offers a Home Complete Personal Loan which is termed as “a personal loan bundled with mortgage financing” (i.e. to put it simply, this is not a standalone loan product but rather an additional facility of a home loan package). This loan offers up to RM150,000 for renovation / contingency purposes and has a maximum repayment period of 10 years.
- Maybank: the MaxiHome-i home loan package offers additional financing for personal investment needs, any contingencies and home improvement.
*based on information provided on websites of banks in Malaysia as at September 2013
Love this article? You may wish to read up on how to find a personal loan with the lowest interest rate in Malaysia.
Already have a renovation amount in mind? Go to our personal loan comparison table to find out which bank is offering you the best rate right now.
Love this article? You may wish to read up on how to find a personal loan with the lowest interest rate in Malaysia.
Already have a renovation amount in mind? Go to our personal loan comparison table to find out which bank is offering you the best rate right now.
