Hi,

First time buying BTO and first time doing renovation and wonder how does it work???

I know i need to give the signed quotation to the bank and max loan is x6 of salary .. so if let say my renovation cost S$25k and I can only borrow S$21k (S$3500 x 6) so can i just top S$4k myself??

So after i signed a quotation with a ID firm and so is it the ID firm will help me arrange for renovation loan or I do it myself?? What if the renovation loan is not approved then what happen?? As i already signed the quotation and cannot cancelled right??

Need anyone to share their experience with me.

Rgds

Vicki

For the quotation from your id, you dont need to sign on their copy or any contract with them. Just ask the id to sign in the quotation and pass you the quotation with their company letterhead. You can also sign on that copy they pass to you. You do not need to sign officially with the id with any contract.

You can take the quotation and go apply the renovation loan as long as the id got sign in the quotation paper.

Remember you do not need to commit anything with the id. No need to sign any contract with them yet.

Once the reno loan is approve, you can then proceed to sign the contract with the same id. You cant change id once u apply using the id quotation and its approve, the cashier order will be under the id company name, the bank will mailed u or you can self collect the casher order. The bank will not pass the cashier order to the id.

Do it yourself to apply the renovation loan, dont let the id do it. They will tell you to sign the contract and they will apply for u the reno loan.

And if the reno loan not aprove, most ID has the contract claus of 20% to 30% termination fee charges. Or some id will forfeit your deposit of 10%.

Its very straightforward to apply a renovation loan. Just go to any bank and ask their staff there, they can help you to submit on the spot.

And its safer for you as you do not need to sign any contract with the id prior to the renovation loan approval from the bank.

If you apply yourself, and if your realise that you might not want the id to renovate your house, you still have a option to cancel the renovation loan, although there will be a 1 to 2% penalty of the loan amount, example u loan 25k, if you cancel after approval, you will need to pay about 250 to 500 for the cancellation.

But if u sign the contract with the id and they apply for you, if your reno loan not successful and you might not be able to proceed with the renovation, some id will forfeit your 10% deposit, some id worst, they contract state that if you cancel, you need to pay 20 to 30% of the whole reno cost as penalty.

Edited July 27, 201511 yr by Ahyong81

Most people thought that only if they sign the contract with the id then they can apply the reno loan, however, the bank only required a orginal quotation with the company signature and letterhead and your signature on the quotation to be submit to the bank to apply the reno loan. Thus you dont need to sign any contract with the id.

The ID just need to pass you the quotation with their signature and print on a paper with their company letterhead.

you can later sign the copy at home or before submit to the bank to apply the reno loan.

Dont sign anything with the id, never sign the quotation and pass back one copy to the id if you are applying for reno loan.

If one decided to apply a reno loan, the id should know that this customer has the intention to sign with that id, so there is no need for customer to sign any contract with them prior to the reno loan approval

Edited July 26, 201511 yr by Ahyong81

If the renovation loan is not successful, there is no worries, since you never sign anything with the id on their side, just infd them the loan was not successful and you cant proceed. At least its safeguarding us as consumers.

Edited July 26, 201511 yr by Ahyong81

So you mean that as long as I just take a copy from ID with his/her signature and company chop will do. so at home i just sign myself and pass to bank but as long as ID dont have the copy that has my signature mean i have not sign with them right?

Yes correct.

Once your reno loan is approved, you can discuss further with the id or contractor.

But before you submit, please decide the id or contractor you seriously want to engage. And best to ask around different opinion before choosing a id or contractor.

To note, best to engage a hdb approved renovation company, you can check if the company is hdb registered or not at hdb website.

http://www.hdb.gov.sg/bn25/isos118p.nsf/List+by+Company?OpenView&Count=15&Start=1&RestrictToCategory=A&CurVal=Reno%20Company%20Name/

Most bank will approve loan to registered hdb renovation id or contractor only.

Maybe if you would like to share with which id or contractor you have enquiry, you could pm me so that maybe i can share some of my experience.

Choosing a id is headache. Finding a committed one is super hard....

Edited July 27, 201511 yr by Ahyong81

Do ask for at least two signed copy of the quotation from the id or contractor to protect yourself. The bank required you to submit the original copy. Taking a 2nd original copy will safeguard you against any changes make by the id or contractor after you have apply the reno loan and the bank approve the loan. Cause this way after you secure the reno loan. You can bring back the 2nd original quotation and verify with the id or contractor quotation to make sure they did not amend the quote on their own.

Ok thank for the advise you are giving me i will take note of that too. I am still sourcing for IDs and this week will start to meet various IDs (about 5 now).

hey vicki mind pm me the IDs u have contacted? Getting a new bto soon

Wah Sound so complicated omg.

hey vicki mind pm me the IDs u have contacted? Getting a new bto soon

U using the id that Vicki using now ?

Hi ,

Any one can advise if applicant is currently under RAS ( repayment assistance scheme) due to credit card loan, can he also apply for a reno loan?

Hope ssomeone can assist on this issue.

Many thanks

Hi, im from RHB bank and we provide reno and furnishing loan.

If you need to understand more kindly drop me a call 85 189 077

I will try my best to help and even expedite the application for you.

Thanks.

Hi, if 1 party on RAS LOAN, and i combine application with my wife, are we eligible for any reno loan?