Renovation can be very expensive if you do not budget well. From an initial plan of a certain sum, you might end up having to pay for more if there are delays or any factors that you did not foresee. Hence, it might spin you off from your affordability in getting the project done. If you are renovating your own home or your personal space, you might consider taking a loan from some of the banks in Malaysia that provide facilities like a renovation loan.
These loans are specially designed for homeowners for renovation as they understand the need to have that extra cash to build a ‘dream home’ before moving in.
Issues to consider
Like any other types of loan, the rule of thumb is to take as low a loan as possible and try to pay the installments back in the shortest time. This will ensure that you are not burdened by too many financial commitments even before starting life in your new house.
There are several banks that offer loans for this purpose while some provides them through their Personal Loan facilities. OCBC Bank offers a Renovation and Refurbishment Loan which comes with a repayment of up to 10 years. This loan provides up to 30% of standby funds that you need for renovation or personal reasons where you can choose to start paying the installment up to 12 months after the loan is disbursed to you.
Meanwhile, Maybank offers their MaxiHome loan which can be used to purchase the home or for refinancing and renovation purposes. HSBC has a HomeSmart facility which is used to offer customers with a property financing facility. Customers can choose to withdraw any excess payments needed for renovation or refurbishment purposes. Other banks like CIMB and Public Bank too have their own respective renovation and personal loan services which can be used for this purpose as well.