Hidden costs, wishful thinking, impulse buys: Costly renovation mistakes to avoid

There’s nothing quite like the feeling of getting the keys to your new place – or finally reimagining the space you call home. Whether you’re planning a full renovation or making smaller upgrades, transforming your dream home is both an exciting and significant milestone in your life.

Before you dive into mood boards and appliance wishlists, there’s one big thing to plan for: your finances. After all, renovations often come with hefty price tags and unexpected costs, and not having a clear plan in mind can result in budgeting mistakes and unnecessary expenditures. From budgeting for built-ins to stretching your dollar on appliances and finishing touches, smart financing can make all the difference in turning your dream home into reality – without draining your savings.

Before you make your first design decision, here’s what to keep in mind to avoid budget stress and keep your plans on course.

Start with a realistic, flexible budget

Every renovation starts with a vision – but it’s your budget that turns that vision into reality. Basic renovations can range from $20,000 for a 3-room flat to upwards of $90,000 for larger resale units or more extensive work. And with older properties, the price tag only climbs higher.

This is why it’s essential to come up with a realistic budget and include a buffer. A good rule of thumb? Add an extra 10 to 20 per cent on top of your estimated cost – this gives you room to navigate unexpected hiccups without derailing your plans.

If the thought of parting with a five-figure sum upfront feels daunting, this is where a flexible personal loan like the GXS FlexiLoan can help. Offered by GXS Bank, a homegrown digital bank backed by Singtel and Grab, the instalment loan allows homeowners to manage costs on their own terms – with customisable loan amounts, repayment periods and monthly due dates to adapt as plans evolve.

There’s also no processing, annual, early repayment or late fees so you stay in control, while keeping your savings intact. However, interest charges apply to late repayment.

Furthermore, when you take up a GXS FlexiLoan instalment loan and name your loan “RENOCLUB” (minimum of $15,000 over at least 12 months), you’ll be automatically enrolled into the new GXS Reno Club – unlocking exclusive benefits and better rates from 1.88 per cent per annum (Effective Interest Rate, or EIR, 3.47 per cent p.a), all designed to stretch your dollar even further and reward you along the way.

Renovate with purpose and plan for the long run

It’s easy to get swept up by Pinterest-worthy kitchens or TikTok tours of wabi-sabi homes. But before you splurge on a marble island or built-in matcha bar, ask yourself: “Does this really suit my lifestyle?”

Also, consider how you live now – and how you might live five years down the road. Planning for pets, children or even a shift to hybrid work can save you from another round of renovations later.

Long-term planning isn’t just for new homeowners, but is also for those who’ve already settled in and are now looking to refresh specific areas of their homes – whether it’s modernising a dated kitchen, upgrading the master bathroom or switching to more energy-efficient appliances.

For example, small-scale improvements like smart tech, better storage solutions or new lighting can make a big difference in how your home looks and feels. Energy-efficient appliances can help you save on your electricity bills over time. However, many of these come with a higher upfront cost.

To help manage these costs, GXS Reno Club sweetens the deal with practical perks:

• One per cent off your prevailing GXS FlexiLoan interest rate for the first year.
• Bonus 0.8 per cent interest p.a. on your GXS Savings Account (capped at $20,000 for six months). Insured up to S$100,000 by SDIC.
• Up to $160 off at Harvey Norman, IKEA, Prism+ and over 20 other retailers when you pay with PayLater by Grab.
• Exclusive Singtel Fibre Broadband that comes bundled with subscriptions to Amazon Prime, Disney+ and more; and up to 25 per cent off Singtel Home Protect deals.

These are thoughtful savings that go beyond just financing – they help you kit out your dream home too.

Take your time and let your space evolve with you

As tempting as it may be to finish everything at once so that your home is showroom-ready the moment you move in, it may be wise to allow yourself time to grow into the space as you live in it. In fact, some of the most personal, character-filled homes evolve over time – often after move-in day as homeowners live in the space, get inspired and adjust according to real life.

This means buying only the essentials when you move in and staggering non-essentials such as decor upgrades. This way, you can spread out costs and fine-tune what you really need for your home – while you recover your savings after completing your renovation.

Here, the GXS FlexiLoan can come in handy. As a revolving credit line that enables you to draw down multiple loans in differing amounts, the GXS FlexiLoan ensures you have access to cash whenever the need arises – and it starts from $200 (up to $150,000, subject to your available credit limit). Simply apply through the GXS Bank app and get cash in your preferred bank account within minutes.

Your renovation journey should feel exciting, not overwhelming. With thoughtful planning and flexible support, you can bring your vision to life – on your terms, at your own pace and with rewards that make the experience even more worthwhile.

Take advantage of the exclusive interest rate from 1.88 per cent p.a. (EIR 3.47 per cent p.a.) and the home perks from the GXS Reno Club. Offer ends Sep 30, 2025.

GXS Bank terms and conditions apply. For more information, visit GXS Reno Club.

GXS Bank is a separate entity and is not associated with the businesses of Singtel, Grab Holdings, Home and Decor and their respective related entities. The GXS FlexiLoan and GXS Savings Account are provided by GXS Bank. GXS Bank holds a banking licence and is regulated by the Monetary Authority of Singapore.