Home Renovation Loans in Singapore: MAS's Rules, How Much Counts, and the Effect on Your Next Home Loan
CPF can't pay for renovation, so it comes from cash or credit. What makes a loan a "renovation loan" under MAS's rules, the test worked at five incomes, how it compares with a personal or equity loan, and what it can do to your next bank loan.
Yes, you can borrow to renovate in Singapore, but not from CPF: CPF savings "cannot be used for renovation, improvement or repair work". Under MAS Notice 635, a loan counts as a renovation loan if the money goes to renovation, it is repaid within five years, any co-borrower is close family, and your share is no more than six months' income or $30,000, whichever is lower. Such a loan is exempt from the $20,000 minimum income for unsecured loans; a bigger one is treated as an ordinary personal loan. Its instalment counts in the TDSR test for any bank home loan you apply for while it runs.
Renovation is one of the big home costs CPF won't touch. Your Ordinary Account can pay for the flat, the stamp duty and the housing loan, but not for the carpentry, the new kitchen or the rewiring. That leaves cash, or credit.
Banks sell renovation loans, and MAS has a specific rule for them: a loan that meets its conditions escapes the minimum income test that applies to personal loans. This guide explains those conditions, works out how much counts at different incomes, compares a renovation loan with the alternatives, and shows the cost few borrowers see coming: what it can do to your next bank loan. Rules are MAS's and CPF Board's, as at 26 September 2026.
Can I get a loan for renovations in Singapore?
Yes. Banks offer renovation loans, and MAS has a rule for them: a loan for renovation that is repaid within five years, with your share no more than six months' income or $30,000 (whichever is lower), counts as a renovation loan and skips the $20,000 minimum income that applies to personal loans.
MAS's notice on unsecured credit carves renovation loans out of its minimum income rule. The carve-out starts: "For the purposes of paragraphs 8 and 9, an unsecured non-card credit facility shall not include a loan for any of the following purposes", and one of them is "any renovation", on conditions (MAS Notice 635, para 7(1)(f)). Paragraphs 8 and 9 are the rule that a citizen or PR needs "an annual income of at least $20,000" for an unsecured loan.
What makes a loan a "renovation loan" (as of 2026, verify on MAS):
| Condition | MAS's wording |
|---|---|
| The money goes to renovation | The bank "has taken reasonable steps to ascertain that the proceeds ... will only be applied towards the defraying of the costs of renovations which have been made or will be made" |
| Five years at most | "the renovation loan repayment period does not exceed 5 years" |
| Close-family co-borrowers | A co-borrower is "a spouse, child, parent or sibling", or a fiancé or fiancée (marriage certificate within 3 months of the first drawdown) |
| Your share within the limit | "not more than 6 months’ income of the borrower or $30,000, whichever is the lower", counting earlier renovation loans from the same bank |
Meet all four and the $20,000 income floor doesn't apply. MAS's own summary: loans for renovation "are not affected by the minimum income requirement on non-card unsecured credit facilities" (MAS).
The rule doesn't cap what you can borrow for a renovation; it decides which rules the loan falls under.
Can I use CPF or my home loan to pay for renovation?
Not CPF: CPF savings "cannot be used for renovation, improvement or repair work". The exception is HDB upgrading costs, which CPF can pay. A housing loan finances the purchase, within MAS's loan-to-value limits, so renovation money comes from cash, a renovation or personal loan or, on a private home you own, an equity loan.
CPF's answer is short: "CPF savings cannot be used for renovation, improvement or repair work for your property. If you are planning to renovate or repair your property, you will need to use your own cash savings to cover the costs" (CPF). The Housing Scheme terms list "Payment of construction works, improvements, repairs and/or renovation" among the things CPF "cannot be used for", for HDB flats and private homes alike (CPF). Even "Adding rooms or extensions to an existing property are considered renovation or refurbishment" (CPF).
What CPF can pay for:
- HDB upgrading costs. "Yes, you can use your CPF Ordinary Account (OA) savings for both HDB upgrading costs and recess area purchases", as a lump sum, or by instalments arranged with HDB (CPF). The Housing Scheme terms name HDB's Main Upgrading Programme and the Town Council Lift Upgrading Programme.
And your home loan? A housing loan finances the purchase, and MAS's loan-to-value rules cap it at a share of the home's value (MAS). The renovation is funded separately.
CPF's own advice when you plan a purchase is to keep "enough cash on hand for other purposes such as renovation and home appliances" (CPF).
How much can I borrow as a renovation loan?
For the loan to count as a renovation loan, your share must be no more than the lower of six months' income and $30,000: $18,000 on $3,000 a month, and $30,000 from $5,000 a month. Two borrowers are tested separately, so a joint loan can be larger. Borrow beyond that and it is treated as a personal loan.
MAS's test counts your share of the loan ("derived by dividing the amount of that loan by the number of persons to whom the loan is granted") plus "all amounts outstanding on ... all earlier renovation loans granted to the borrower by the same bank", against "6 months’ income of the borrower or $30,000, whichever is the lower" (MAS Notice 635, para 7(1)(f)(iv)).
| Monthly income | 6 months' income | Most a renovation loan can be (your share) | What sets it |
|---|---|---|---|
| $3,000 | $18,000 | $18,000 | 6 months' income |
| $4,000 | $24,000 | $24,000 | 6 months' income |
| $5,000 | $30,000 | $30,000 | $30,000 cap |
| $6,000 | $36,000 | $30,000 | $30,000 cap |
| $8,000 | $48,000 | $30,000 | $30,000 cap |
PropKaki arithmetic on MAS's test. Fees, interest and late charges are not counted.
Three things follow:
- From $5,000 a month, the $30,000 sets the limit, not your income.
- It is per borrower. Each co-borrower's share is tested against their own income, so two close-family borrowers can hold a larger loan between them.
- It is not a ceiling on borrowing. A loan that fails the test isn't banned; it simply falls under the ordinary unsecured-loan rules, including the $20,000 minimum income and MAS's credit limits.
Think of $30,000 per person as the line between a renovation loan and a personal loan.
How long can a renovation loan run, and what does it cost a month?
Up to five years, if it is to count as a renovation loan. Repaying $30,000 over five years is $500 a month in principal alone, before interest at the bank's rate. PropKaki tracks no renovation-loan rates, so compare the bank's figures on the total you will repay.
The five years is one of MAS's conditions: "the renovation loan repayment period does not exceed 5 years" (MAS Notice 635). Spread over the full term, the principal alone works out to:
| Renovation loan | Principal a month over 5 years |
|---|---|
| $10,000 | $167 |
| $20,000 | $333 |
| $30,000 | $500 |
Principal only; interest comes on top at the bank's rate. PropKaki arithmetic.
Why no interest figure? PropKaki tracks no renovation-loan rates, and the rates in our Property Financial Planner are for housing loans, which are a different product.
Five years is short: the instalment is bigger, and so is the pressure on your monthly budget.
What does a renovation loan do to your next home loan?
It can shrink a bank loan, if TDSR is the limit that binds. The renovation instalment counts in TDSR, and banks test a new home loan at 4% or more, so every $100 of monthly debt lowers the TDSR ceiling on a 30-year loan by about $20,946. MSR, which caps property loans for HDB flats, doesn't count it.
Two MAS tests can apply to a bank home loan:
- TDSR: "all their debt obligations, including the loan being applied for", up to 55% of gross monthly income (MAS). A renovation loan is one of those debts: MAS's list covers "any other credit facility" (MAS Notice 645).
- MSR, for an HDB flat or an EC still in its minimum occupation period: "all their property loans" up to 30% of income (MAS). A renovation loan is not a property loan, so MSR doesn't count it.
The new home loan is tested at "The higher of a 4% per annum (p.a.) floor ... or the thereafter interest rate" (MAS). Where TDSR is the limit that binds, the renovation loan lowers the ceiling like this:
| Renovation loan | Principal a month over 5 years | Less housing loan under TDSR |
|---|---|---|
| $10,000 | $167 | $34,910 |
| $20,000 | $333 | $69,820 |
| $30,000 | $500 | $104,731 |
The last column is the 30-year bank loan the same monthly amount would otherwise support at MAS's 4% floor; PropKaki arithmetic with the planner's own loan formula. Principal only: with interest, both columns are larger. It matters only when TDSR, not MSR or your own budget, is what limits the loan.
So the people most exposed are private-home buyers, and HDB buyers taking a bank loan who already carry other debts (car, cards, the renovation loan) large enough to push them past 55%. If an upgrade is coming, check your TDSR with the renovation loan in it in the Property Financial Planner, and see how to calculate TDSR.
A small loan today can cap a much bigger one tomorrow, if TDSR is your limit.
What type of loan is best for home remodeling?
It depends on the size of the job, your income and what you own. A renovation loan skips the $20,000 income floor within its limit. A personal loan is capped by MAS's unsecured credit limits. An equity loan, on a private home you own, can be larger and longer but is secured on your home. Cash costs no interest.
PropKaki names no bank and doesn't tell you which to choose. Here is how the options differ under the rules:
| Renovation loan | Personal loan | Equity loan | Cash | |
|---|---|---|---|---|
| Who can get it | No $20,000 income floor (the limit is six months' income, so you need an income) | Citizens and PRs need an annual income of at least $20,000 | Owners of a private home (not an HDB flat, or an EC within its MOP) | Anyone |
| How much | Your share up to the lower of 6 months' income or $30,000 | Unsecured credit, shared with your credit cards, up to 2 or 4 months' income by income band (no limit from $120,000) | All loans on the home within 75% of its value (45% with another housing loan), less the CPF test | What you have |
| How long | Up to 5 years | The bank's term | Up to 35 years | — |
| Secured on your home | No | No | Yes | — |
| Counts in TDSR | Yes | Yes | Yes, unless loans on the home stay at 50% of its value or less | No |
Sources: MAS Notice 635 and its explainers (MAS) for renovation and personal loans; MAS's equity-loan rules (MAS). Rates: ask the bank; PropKaki tracks none.
A personal loan also sits inside MAS's wider limit on unsecured borrowing: once your unsecured debt exceeds 6 times your monthly income, you "cannot obtain new credit facilities that will cause their total credit limit to exceed 12 times monthly income" (MAS).
An equity loan is a bigger decision, because your home secures it: see our guide to home equity loans.
Match the loan to the job, and weigh what secures it before what it costs.
Can two people take a renovation loan together?
Yes. For a joint loan to count as a renovation loan, the co-borrower must be close family: a spouse, child, parent or sibling, or a fiancé or fiancée who then shows the bank a marriage certificate within three months of the first drawdown. Each borrower's share is tested against their own income.
MAS's condition is that "that other person or each of those other persons is (A) a spouse, child, parent or sibling of the borrower; or (B) a fiancé or fiancée of the borrower", and for a fiancé or fiancée, "the borrower has agreed to provide a copy of his marriage certificate to the bank in Singapore not more than 3 months after the first disbursement of the renovation loan" (MAS Notice 635, para 7(1)(f)(iii)). A joint loan with anyone else isn't banned: it is treated as an ordinary unsecured loan, where "every joint borrower has an annual income of at least $20,000".
For couples renovating a new flat before the wedding, this is the rule that matters: the loan can be joint, but the marriage certificate has a deadline, and MAS's notice sets consequences if it is missed.
How far into their lease are the resale flats people buy?
Often a long way. Of 24,592 HDB resale flats sold from September 2025 to August 2026, about 45% had a lease that started 30 years or more before the sale. For those buyers the purchase and any renovation arrive together, and only the purchase can use CPF.
HDB's resale records show how far into its lease each flat was when it changed hands:
| Lease had run | Flats sold | Share |
|---|---|---|
| Under 10 years | 4,879 | 20% |
| 10 to 19 years | 3,589 | 15% |
| 20 to 29 years | 5,025 | 20% |
| 30 to 39 years | 4,212 | 17% |
| 40 years or more | 6,887 | 28% |
PropKaki analysis of HDB resale records, 2025-09 to 2026-08 (24,592 resales with a lease year). Lease age is the sale year minus the year the lease started; it is not the building's age.
Read with the CPF rules, this is the renovation-finance question in one table. CPF can pay for the flat, but "cannot be used for renovation, improvement or repair work" (CPF), so a buyer who plans works needs cash or credit on top of the downpayment and fees.
For what an older flat's lease means for your CPF and loan, see 99-year leasehold explained.
Budget for the renovation before you bid on the flat, not after you collect the keys.
What does the bank check before it lends for renovation?
That the money will go to renovation, and that you can repay it. For the loan to count as a renovation loan, MAS requires the bank to take "reasonable steps" to make sure it pays renovation costs; your income sets the limit, and the bank's own credit checks decide the rest.
MAS puts the purpose test on the bank: it must have "taken reasonable steps to ascertain that the proceeds of the renovation loan will only be applied towards the defraying of the costs of renovations which have been made or will be made" (MAS Notice 635). So expect to show what the money is for. The wording also covers renovations "which have been made", not only future work.
Because the limit is six months' income, the bank will look at your income too. The rest is its credit judgement: your existing debts and your record. MAS's rules set the conditions; a bank can lend less, or decline.
What is the biggest mistake people make with renovation financing?
Planning to pay for the renovation from CPF, and discovering at key collection that it can't be done. The second is taking a renovation loan shortly before applying for a bank home loan, when TDSR is the limit, and finding the bank will lend less.
Two mistakes, one on each side of the move:
- Counting on CPF. CPF pays for the home, not the works (what CPF does and doesn't pay for). "If you are planning to renovate or repair your property, you will need to use your own cash savings to cover the costs" (CPF). Budget the renovation in cash (or a loan) from the start. What HDB allows in a new flat, and what fittings cost, are in BTO renovation ideas; the working hours and noise rules in HDB renovation and noise rules.
- Borrowing in the wrong order. While a renovation loan runs, up to five years, its instalment counts in TDSR. Where TDSR is the binding limit, repaying $30,000 over five years (principal only) lowers the ceiling on a 30-year bank loan by about $104,731 at 4%. If an upgrade is coming, run the numbers first.
Renovation is cash-first: CPF won't help, and credit has a cost that can show up later.
Official sources
The MAS and CPF pages behind this guide, all read on 26 September 2026.
Methodology and sources
Where every rule and figure on this page comes from, and what we did not claim.
Official rules. The renovation-loan conditions are from MAS Notice 635 (last revised 13 May 2022), para 7(1)(f), read with paras 8 and 9, and MAS's explainers on unsecured credit. The TDSR and MSR rules are MAS's housing-loan explainer and Notice 645; the 4% test rate is from the joint MAS, MND and HDB release of 29 September 2022. The CPF rules are CPF Board's FAQs (updated 7 November 2025, 24 and 26 March 2026) and its Housing Scheme terms (updated 7 September 2026). All read on 26 September 2026.
Proprietary figures. The renovation-loan test by income, the principal repayments and the TDSR effect are PropKaki's arithmetic on MAS's rules, using the Property Financial Planner's loan formula at MAS's 4% floor over 30 years. The resale table is PropKaki's analysis of HDB resale records, 2025-09 to 2026-08 (24,592 resales). How we work: PropKaki methodology.
What we have not claimed: any bank's rate, fee or product (PropKaki tracks none); what a renovation costs; whether a bank will lend to you; or which loan suits you. This is a practical explainer, not financial advice. Check the bank's terms before you borrow.
Got a question this raised? Ask PropKaki.
Take any point from this analysis and apply it to your own project, budget or decision.
PropKakiFor most buyers this year, staying well within budget beats trying to time the market.