Transform your house into your ideal dream home.
We all want to live in our dream house. A place that we are happy to come home to, a place that we are proud of.
It could be a house with vibrant coloured walls, wooden flooring, mirrors, warm carpets and a good stereo system. It could be a house with marbled flooring, beautiful chandelier, gold decorations, carpets and curtains and the best electronic devices. It could be a house with wooden tables and furniture, orange pillows, bright paintings, classy lamps and perhaps a plant or two to add a touch of nature.
It is a place called home.
Getting a house in Singapore does not come easy. Property prices are always on the rise and when one finally gets a home, the renovation costs usually puts a frown on people’s faces. Renovating a 4-room HDB in Singapore costs an average of $60,000 and one will also need to consider the costs for furniture and electronic devices.
However, getting the home of your dreams is not impossible. DakoNorth aims to help both Singaporeans and foreigners attain their dream homes. Using the expertise and knowledge from our team of experienced financial consultants, DakoNorth introduces our very own Renovation Loan.
Renovation loans help home owners acquire enough funding to renovate their houses. Be it a new flooring, repainting of walls, fixing new lights or changing doors and gates, all these construction costs can be covered by renovation loans.
Renovation loans have been gaining popularity in Singapore over the years especially for home owners aged 28 to 40 years old. These loans cover all renovation needs and help applicants achieve the ideal style and look for their homes.
Many local banks such as POSB, MayBank, OCBC, CIMB and more offer renovation loans as well. However, most of their packages only allow funds to cover renovation costs. DakoNorth wants to ensure that all of the applicant’s needs are covered. This means that aside from renovation and construction costs, DakoNorth’s loan can also cover the costs for new furniture, electric systems and home gadgets. Be it the gorgeous wooden sofa that costs thousands of dollars or the latest stereo system from Sony, DakoNorth’s renovation loan will be able to cover for it.
Another advantage is that DakoNorth offers a higher approval rate than many banks. If one has ever tried doing a financial transaction with a bank, you will realise that there are many steps to take, forms to fill and it also comes with long processing time. At the end of waiting, the applicant may even get rejected. DakoNorth offers personalised services and packages and no matter what the situation is or who the applicant is, our experienced financial consultants will always be willing to listen to the applicant’s plan, goals and stories.
Taking up renovation loans is common in Singapore because it helps one decorate and get their dream house. In certain scenarios, it can be considered as a good debt because having a comfortable home can help one recharge better and improve one’s mood. Nonetheless, one should only take up a loan amount that they can afford. Rest assured that DakoNorth’s financial consultants are experienced and will be with our clients through each step.
Electric Wiring – Changing the wiring (especially in older houses) for convenience and safety reasons. Wires tend to rust or the circuit and systems may require updates.
Tiling and Flooring – Refurnish the flooring of the house to suit your preference. It could be ceramic or porcelain tiles, hardwood, carpets, laminates or marble flooring. Flooring plays a huge role in one’s home as it affects the general appearance and style as well as the comfort of the place. Wooden flooring tends to portray a warmer style while marble flooring portrays a cooler, classy style.
Structural Alterations in Your Home – Structural alternations such as statues, stairs, wooden racks and shelves, artistic walls, adding in large mirrors, wall hanging tapestry, creating a false ceiling and more.
Painting – Use to funds to paint the home with the colours that you like. Perhaps it could be warm orange to brighten the mood, pink for an exciting atmosphere, blue for calm vibes or beige and yellow for a nature themed home.
Wall Papering – If one’s wall is dirty and damaged, owners may choose to put up wallpapers instead. This is not your desktop wallpaper, but is a renovation idea that more and more people are turning to. Beautify your home with wallpapers of intricate patterns, mosaics, stripes, fabric, palm-patterned wallpapers, abstract art, basically any design that you want.
External Parts of Property – If you house has a balcony or a garden, you can use the funds to decorate the area into a cosy area to relax and recharge. Add in a couple of beanbags, highchairs, tables, plants and lights and the area will be transformed beautifully.
Basic Bathroom Fittings – Replace old basins, mirrors, water heaters or toilet bowls with the renovation funds. Add in new taps and shelves to increase convenience and if one has elderly at home, they can add in safety grips and handles to prevent accidents from happening.
Carpets and Electronics – As mentioned, DakoNorth’s renovation loan includes the cost for furniture and electronic purchases. One can get a handwoven carpet, new sofas, new bookshelves, televisions to upgrade and make their homes even better. The amount of improvement one can make to their home is limitless.
Before approaching a bank or a financial institution, you will have to consider how much you need in total for your renovation. Usually, there may be a borrowing limit of 6 times a person’s monthly salary. This is done to protect you from overexerting your finances. However, there may be exceptions for individuals so it will be good to check with the consultants.
It can be tempting to take the maximum loan amount for your home renovation. Sometimes, the total quote given by the contractors can be rather high. However, one must always ensure that they are able to make the monthly repayments and try to negotiate with the contractors for a better deal.
It is important to note that the figure you are given as a loan is not what you will repay. Usually, the loan will cost much more. It is there important to factor in these costs to truly understand how much you will need to repay. These may include: interest, processing fee, disbursement fees, administrative fees, cancellation fees, early redemption fees, late fees or partial repayment fees.
Loan tenure refers to the period you are given to repay the loan. The loan tenure affects the amount of interest the borrowers pay. Usually, the maximum loan tenure for renovation loans is five years. This does not mean that one should always try and apply for the longest or shortest loan tenure. A longer loan contract will mean that one has to pay more interest over the years. Consider how long you will need to repay the loan to find out the best option for yourself.
Not only should one consider the interest on the loan, they should also look at the type of interest rate the lender uses for the loan. A fixed interest rate will not change. This simply means that one will continue paying the same interest rate on the loan throughout the loan tenure. Some lenders choose to apply effective interest rates on their loans, meaning that the interest rate will be based on the outstanding amount instead. In any case, choose the type of interest that best suits you.
Some lenders provide bonuses and benefits to encourage people to take out a loan with them. These may include lower interest rates, low or no processing fee payments or no charges on the first few payments. Sometimes, financial institutions may offer better deals if the applicant is working with them for two or more loans (such as a renovation loan and a business loan). It is always a good idea to ask around and compare loans from different lenders before signing.
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