Renovation and refurbishment are part and parcel of homeownership. After the initial exorbitant amount spent on purchasing a home, most of us would find it difficult to splurge further on customisations fit for a dream home. Despite this, many reckon that a home without its own character isn’t really a home, and this explains why most homeowners find themselves taking up housing and renovation loans.
In order to live in a space we can truly call home, we often look towards the idea of securing loans from banks to help tackle the issue of insufficient funding. As such, let us shed some light on how and where you can secure your bank loans for home renovation in Malaysia!
Credit: Outlook India
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.
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 do put in some time to research on this topic via the official website of your preferred bank. Like Personal Loans, Renovation Loans have varying interest rates, depending on the bank providing the loan.
We’ve compiled a list of banks in Malaysia providing Renovation Loans that are worth considering:
Provides the MaxiHome loan package, inclusive of offers such as additional financing for personal investment ventures, as well as home improvement projects.
Provides the Renovation & Refurbishment Loan, inclusive of attractive deals such as exemption from monthly maintenance fees. OCBC Bank offers a 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. This service is strictly exclusive to customers of OCBC Bank.
Provides the Home Complete Personal Loan, which is termed as “a personal loan bundled with mortgage financing.” This loan provides up to RM150,000 for renovation or contingency purposes and has a maximum repayment period of 10 years. Take note that since this is a bundled service, this loan is more accurately an extension of an already existing mortgage loan customers have with Alliance Bank.