Financing a Home Renovation in Malaysia
August 3rd 2022
Whether it is for a brand new home or a home that is due for some upgrading, renovations are often deemed necessary and almost inevitable. In order to live in a space we can truly call home, we tend to look towards the idea of taking up loans to help tackle the issue of insufficient funding, as renovation is definitely not cheap.
However, jumping into a loan that you don’t fully understand is a dangerous game to play. There are a plethora of loan types out there in the market, and in order to secure a loan that is sound and affordable for renovation purposes, there are certain key factors to consider. Today’s read will guide you through the various ways and types of loans to help with financing a home renovation in Malaysia.
Cash on Hand
Paying with accessible cash is the best way to fund low-cost home renovations. By not taking up loans and racking up interest fees, it saves you the extra pressure of repaying financial institutions on time and at a jacked up rate.
This is by far the most economic method of paying for low-cost endeavours, as nothing beats being debt-free and not having to answer to anyone — or worse, being hunted down by debt collectors in the event of late payments.
A Renovation Loan is a service offered by most major banks in Malaysia. As its name suggests, a Renovation Loan has the sole purpose of providing a loan to borrowers who wish to renovate or refurbish their home or property.
Take note that Renovation Loans are usually only available to borrowers who have an existing housing loan with the same bank. Terms and conditions are subject to changes, so put in some time to research this topic via the official website of your preferred bank, as different banks carry different interest rates.
A Personal Loan is a service offered by all major banks in Malaysia, whereby borrowers borrow a specific amount of money from the bank, bound by terms and conditions. One of the more obvious conditions is the charging of interest that will be incurred on the original amount that has been borrowed.
Essentially, terms and conditions vary from bank to bank, hence it is best to do some research and financial planning before taking up a Personal Loan, as it will aid you in finding a loan that caters to your needs and fits your requirements, enabling a comfortable repayment process. Before you make your way to the bank though, do make sure to decide on the amount you wish to borrow, as over-borrowing can land you in an unhealthy financial situation, as the incurred interest charges pile up in the long run.
Once you have decided on the amount you wish to borrow, conduct some research on the banks with the best interest rate for the specific amount you wish to borrow. This can help you save time and energy, as information is widely available on the banks’ official websites. It is important to take all the time you need to compare and come up with a final decision, as the last thing you’d want is to land yourself in a debt you can’t repay.
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