Managing home reno costs: How flexible, customisable loans can help ease stress

When it comes to home renovations, there are a lot of things that need to be done – from planning the design, to getting the right contractor or interior designer, right down to selecting the best appliances to suit your lifestyle.

Although the idea of transforming a space is exciting, one of the most important aspects to consider is the finances involved because home renovations can take a huge chunk out of your cash flow.

Whether you’re moving into a new apartment or looking to renovate your current place, , offered by homegrown digital bank GXS Bank, which is backed by Singtel and Grab, has customisable loans to help you attain the home of your dreams.

Here’s how to achieve your home renovation goals with the help of a customisable loan.

Renovation budget estimation

There are various factors that influence the cost of home renovations, such as the size and type of property, and the desired extent of renovations – all these will determine the amount that you will need for your loan.

If you’re a new couple who has just received the keys to your first 3-room Build-to-Order (BTO) flat, the average cost of renovation starts from $32,000 and goes all the way up to $52,100, according to 2023 figures.

The average cost for resale flats is even higher – $42,000 for a 3-room HDB to $65,200 for a 5-room flat. This is understandable as there is more space in a 5-room flat that requires renovation, and much more work to be done as resale flats are older.

Having a rough idea of how much you need, you can then decide whether you need to take a loan or partial loan to help finance the renovations. GXS, which holds a banking licence issued by the Monetary Authority of Singapore, offers flexible loans with no annual or early repayment fees. However, interest charges apply to late repayment.

Bringing flexibility to personal loans

While you may have already decided on the colour palette of your dream home, how extensively you want to renovate will also affect your cost. Activities such as hacking, installing built-in cabinets, or using better quality materials will all add up, depending on the extent of renovation.

For instance, renovating your living room includes significant expenses, particularly in masonry for the floor and carpentry for features like built-in TV consoles, cabinets, shoe shelves, and other fixtures. These expenses typically range from $5,900 to $52,000.

Miscellaneous costs are another factor to consider during a home renovation. These often overlooked expenses, spanning from electrical work to painting, cleaning and polishing, can arise unexpectedly.

For example, hiring a skilled electrician to revamp wiring and lighting typically starts at $6,000, while plumbing costs can reach up to $4,000, depending on the complexity of your kitchen and bathroom renovations.

It can also be difficult to estimate a lump sum to borrow as unexpected issues may arise during the renovation process. A door may not close properly, requiring rectification, or the contractor might have budgeted for the wrong materials, leading to additional expenses beyond the initial quote.

is designed for such cases due to its flexibility:

• Borrow when you need

If you discover that you are tight on finances halfway through the renovation process and need a loan, you can have access to cash fast via the GXS app – apply and get a account on standby in less than three minutes¹.

lets you take a loan from as low as $200 up to $100,000, subject to your available credit limit.

• Take out multiple loans as and when you need

If your interior designer initially quoted you for vinyl flooring but you decided to go with homogeneous tiles later on, the additional amount can be taken care of with the . You can draw another loan from your available credit limit, with no additional checks.

operates as a revolving credit line, allowing you to access up to 10 loans, each within your approved credit limit. So, if your credit limit is $10,000, you can draw 10 individual loans of $1,000 or differing amounts, as long as the total does not exceed $10,000. Additionally, you can continue to borrow within your approved credit limit as long as the other loans are repaid.

• Flexibility to choose your loan tenure

For the time taken to repay the loan, it can be any time from two months to up to 60 months, depending on the loan size. You aren’t being tied to a certain time frame.

This ensures that you don’t end up owing the bank for longer than needed. If you are able to repay the loan earlier than expected, you can do so without incurring any early repayment fees.

• Select your desired repayment date

This allows for better planning so you don’t fall behind. For example, if you get your pay on the 20th of every month, you can choose to schedule repayment accordingly.

From new homes to extreme makeovers

With the flexibility of the , existing homeowners stand to benefit too.

Perhaps you need to renovate an old kitchen, replace an old fridge, or it could be that you’re simply eyeing that nifty robot vacuum cleaner, or thinking of upgrading to a smart home. These can add up a fair bit, especially when you still have other concurrent bills to pay for.

With the , there’s no need to delay the renovation or getting the new appliance that would make your life more convenient – you can take out a loan immediately and get down to upgrading your space.

“GXS is all about fitting into our customers’ lifestyles. With the , we want to give our customers full control and flexibility on the loan usage and repayment according to their needs,” says GXS head of retail Jenn Ong.

Getting started on your application begins through the GXS app. You will need to sign up for a account – your credit limit, which is the maximum amount that you can possibly borrow, and the interest rate will be shown during the signup process. The interest rate starts from 2.99 per cent per annum (p.a.), with an Effective Interest Rate (EIR) of 5.65 per cent p.a.

The EIR represents the actual cost of borrowing, including the interest rate, accrued interest and any additional processing fees associated with the loan. Notably, with , there are no processing fees and hidden charges, making the loan simpler.

From now till June 30, 2024, sign up and use your and stand a chance to win prizes such as a dream home makeover, a dream adventure, an iPhone 15 with free Singtel bills for a year, and up to $150,000 in Grab vouchers.

Footnote:

Disclaimer:

GXS is a digital bank backed by Grab and Singtel. is provided by GXS. GXS holds a banking licence and is regulated by the Monetary Authority of Singapore. GXS is a separate entity and is not associated with the businesses of Grab Holdings, Singtel, and their entities, or Home and Decor.

Terms and conditions apply. For the full terms and conditions on and the campaign, visit www.gxs.com.sg/flexiloan. All figures in the images are for illustration only.