Home Renovation Loan At Your Service | Are you a home owner planning to upgrade your home by renovating it? Or are you one of those who opt for houses for rent in Melaka, and planning to renovate your home after signing the lease contract? However, renovations are not cheap and you have no choice but to think hard of the options that you have to make it happen. Most people will definitely look for financial help in terms of home renovation loan or even personal loan when it comes to house renovation, unless they have an amount already saved aside that is meant for renovation. This article will guide you through using a loan to go through your home renovation.
As there are many different kind of personal loans from over 20 different banks in Malaysia out there for you to choose, when it comes to deciding which personal loan to choose, it is crucial to make the right choice and choose the right one so you do not regret in the future. After all, it is considered as a big decision.
1. Identify the needs and your budget
First of all, identify what kind of renovation that you intend to make. Plan your budget accordingly and plan ahead so you will have an idea of how much money you will need to renovate your place. Be realistic and identify only renovation that needs to be done to prevent yourself from overspending. Think thoroughly on the renovation that needs to be done, whether there is a need to knock down the walls in order to create a new floor plan or just rearranging the furniture will do. The type of renovation that you intend to make will also depend on how much money you are willing to use and how much savings you have, if not how much money you will be using from the personal loan.
2. Comparing personal loans
After deciding how much money you will need for your home renovation, you will then need to compare different kind of loans available out there. You are allowed to take a minimum loan amount of RM1,000, up to a maximum amount of RM400,000, depending on your income and credit rating, and of course the bank’s approval, with the condition that you must be 21 years old at least, but not more than 60 years old.
The advantage of taking up a personal loan is that you are not required to offer collateral or assets to the bank, yet you are still able to receive the money you need to cover your renovation cost. After that, you can choose to repay the bank loan over a period of 6 months to 10 years. Do bear in mind that taking up a personal loan comes with interest so you will need to put the interest rate into account when deciding to take a personal loan. Make sure you are able to afford the loan before making the commitment.
There are various comparison tools in the Internet for you to find loan the suits you the best.
3. List down potential contractors and interior designers
After deciding on taking up a personal loan, you can start making a list of contractors of interior designers that you would like to engage with for your home renovation. Do your research early, make an excel sheet and ask for quotation to compare prices so you know you are getting the best deal out of it, and most important, fits your budget. You definitely do not want to end up paying some hidden costs that were not mentioned before.
There are some differences between a personal loan and other loans available. If you do not wish to take up a personal loan, you could also choose house renovation loan to help you through your home renovation. There is a difference between a personal loan and a house renovation loan. A house renovation loan is designed only for the needs of home renovation or home refurbishment.
There are a few home renovation loans available in Malaysia that you could choose from:
(a) OCBC Renovation and Refurbishment Loan (RNR)
(b) Maybank MaxiHome Loan
(c) Public Bank 5 HOME Plan
(d) Alliance Bank Home Complete Loan
(e) CIMB Home Loan
These loans however come as a bundle with the mortgage loan that home buyers applied when they bought a new house.
Most importantly, renovate within your means. Be realistic and do not spend more than what you can afford to prevent yourself from getting into a debt. Always look out for good deals available out there. Consider budget friendly renovation when it comes to renovation such as painting your walls instead of refurbishing and hacking your walls. You will be surprised at how much you can save by the end of the day. Especially for people who are currently renting a house, minor budget friendly renovation will be good enough.