Personal loans have been the solution of most Singaporeans whenever they were in need of money such as when doing a home renovation but are these truly practical to jump in with personal loans when having a home renovation? Licensed moneylender directory showing unbiased reviews of legal moneylenders – https://www.moneylenderreview.com/.
What is Renovation Loan?
Aside from personal loans, you still have other options where to get the money to fund your home renovation like getting a renovation loan. Through a renovation loan, you will be given a lower interest rate compared to personal loan.
The only downside with renovation loan is that it has a lower limit when it comes to the loan amount. Usually, the cap when having a reno loan is six months of your income with a maximum of $30,000, and there are instances where your home renovation expenses would exceed this amount.
When to Get a Personal Loan?
Choosing to have a personal loan to fund your renovation is not that bad especially if a reno loan isn’t enough, but there are also some things that you have to consider before applying for a personal plan like:
- Personal loan promotions
When you spend our money, you make sure that you are spending it in the right way that’s why if you have seen any personal loan promotions, and you have planned to do home renovations, you should take the opportunity and grab the promotion.
Most personal loan promotions you can find have a zero interest rate which is applicable if you are going to repay the loan amount within a certain amount of time which is usually six months. If you think that you can pay the loan amount within six months, then you should apply for a personal loan instead.
Paying the loan interest rate every month is already a big deficit on your monthly salary and instead of paying it to your moneylender or the bank, you can still use it in various ways such as your home decors or you can add it on your savings for future use.
- Something goes wrong
During a home renovation, there are cases when something goes wrong, and you don’t have a choice but to spend more money. In worst cases, you may be forced to change your contractor especially if they have given you bad work etiquettes like going to work late or not being able to give you the services you wanted.
If you are going to change your contractor, there would be changes in how your home renovation will be handled and if it happens that you have already applied for a reno loan which was given already to your old contractor, you now then don’t have a choice but to get a personal loan to continue your home renovation.
- Budget is not enough
This problem is surely common when having a home renovation where your contractor wasn’t able to estimate the renovation costs accurately. As what they say, if given by the contractor a home renovation budget, you should add 20% to it so you can make sure you have extra funds, but there are still instances where 20% isn’t enough.
Aside from the contractor, you also have to consult your electrician and plumber for renovation costs which makes the project a costly one thus you should be ready and have your research ahead of time with where you can get the extra funds you needed just in case your budget for the renovation isn’t enough.
If you were told by the contractor to budget $20,000 for your home renovation and suddenly tells you during the renovation that they need more, you won’t have any other option but to have a personal loan. Personal loans can be claimed easily which makes it an excellent choice for those who are in a hurry.
How to Save Money during Home Renovation:
Home renovation certainly is an expensive project especially if you wanted to have a big home renovation, but if you are wise enough, you can find a way on how you can save and maximize your money.
One way you can save money when having a home renovation is through having a canvass first. You may ask several contractors on their services’ price range, and you can also opt to ask your friends and relatives if they knew a contractor in the area that offers affordable services.
The budget of your home renovation would depend on your contractor since there are contractor who would give you advice on how you can have a cheaper home renovation therefore if you can choose the right contractor, you won’t just have a flawless home renovation, but you could also save money.
You may also choose to recycle some materials on your home that can still be used; this way, you can cut expenses on the renovation materials. A home renovation is surely a project that we are excited to think and talk about but before deciding on things, make sure that you can study the necessary steps of home renovation first so you can save your time, effort and money.