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6 Smart Ways to Raise Cash for Your Renovation Project

Whether you are a first-time homeowner, or you have lived in your current house for a while, at some point, you may want to update your home to fit your style. Whether it is a single room in the house, fixing the dripping roof or damaged ceiling, or a full renovation, chances are you will need to raise money to do the necessary updates and repairs.
Updating your house is common for homeowners. The Katong neighborhood in Singapore has heritage buildings and colonial bungalows—general upkeep is necessary to maintain the neighborhood aesthetics and structure. If you are in Katong and looking to raise funds for a home renovation, here are some ways you can raise some cash:

Save Up

If you are not financially capable of funding your renovation plans, it’s best to cut back on expenses. While it may take some time to save up for your home renovation, being serious about the effort will put you at ease when you don’t have to think of loans to pay after. Take a look at your current expenses and check where you can cut back, such as multiple streaming services, non-essential grocery items dining out, or traveling for leisure, you will find that the amount you save will add up fast.

Home Equity

If you have a low mortgage or have already paid your loan, you may think that refinancing is a good idea. However, there are other ways to do so without tapping into your equity to pay for your renovation.

  • Home Equity Line of Credit – This works like a credit card. Your HELOC has a limit that you can borrow, but since the loan is secured, you have an adjustable rate with a lower interest rate compared to a credit card.
  • Home Equity Loan – This is another option that will allow you to tap into your equity pay without refinancing your mortgage. Unlike the HELOC, this requires you to take out the entire loan. However, take note that the interest rate is a bit higher than the HELOC.

Refinance Your Mortgage

Refinancing can help you stash extra money to renovate your home. Based on your current interest rate, you can refinance at a lower rate or for a longer loan term that could lower your monthly mortgage payments. With this, you can set aside the payment difference until you’re ready to begin your renovations.
Refinance Your Mortgage

Bank Loan

Home Improvement Loans are unsecured loans. They are offered by a bank, a top rated money lender in Singapore, or a credit union. This means that you don’t have to use your house as collateral to qualify for such a loan. Once approved, the bank or the lender usually deposits the money directly into your bank account. However, because these are unsecured loans, they have higher interest rates than home equity loans or HELOCs.

Use Creative Means

While this may not be the ideal way for some, taking a more creative way to raise money is effective, especially if you have valuable items that are of no use to you or if you have a lucrative talent that you can use.

  • Garage Sale – As the old saying goes, one man’s trash can be another one’s treasure. If you have trinkets, antiques, or even clothing and furniture that you no longer use but are in good condition, you can sell them the old-fashioned way as a garage sale, or by creating an online store on your social media accounts.
  • Side Hustle or Small Business – If you have a lucrative hobby such as knitting, graphic design, or baking, you can sell your goods to your friends and neighbors or online. During the COVID-19 pandemic, people have learned to be creative to make money. The same can be said for your renovation project.


This is effective for newly-weds. Instead of asking your guests to bring you gifts from the registry, you can ask your family and friends for cash to put toward your home renovation instead. Otherwise, crowdsourcing platforms like GoFundMe, Indiegogo, and Patreon can help you raise funds as well, as there are good Samaritans who are willing to help out people in need. However, this is not a fool-proof plan as you could raise very little to none if you haven’t put in your crowdsourcing effort enough.
If you think you can handle loans, you can look into which banks or lenders offer the best rates. If you are looking at a more creative route, plan your marketing to get the most out of your small business or side hustle. You may even want to check in with a financial planner to help you decide how to handle your finances better. Regardless of the type of funding, you will use to secure your home renovation project, it is important to research your options to find which one fits the best for you.