Why you should care

Here’s your guide to home financing options to help you achieve your dream home.

We’ve all spent more time at home these past two years than ever before. Because of that, more and more homeowners are keen on giving their abodes a spruce up to make space for home offices, bigger bedrooms, or just a complete 180 makeover.

There is the impression that home renovations can be costly, but nowadays, it’s so easy to find businesses that can cater to your specific tastes and budgets. So if you think that the enhancements can increase the value of your property, or you just want to breathe life into a tired space, there are many options where you can procure the funds necessary.

Credit Card


Credit card citibankUsing a credit card to finance home improvements may be a good option if you’re looking at smaller budget projects like plaster ceilings, feature walls, or home storage additions. It’s quick, and it’s easy. With Citi Cash Back Card, users will receive 0.2% unlimited cash back on their retail purchases so you could buy new paint, furnishings, or even wardrobe storage and receive cash back for your home upgrade!

Users will receive 0.2% unlimited cash back on their retail purchases.

In addition, if you spend up to a certain amount or patronise partnering businesses for dining, groceries petrol and GRAB, users will receive up to 10% cash back up to RM60 with no minimum cash back accumulation required.

The sheer convenience of credit cards can’t be overlooked with its quick approval process that only requires a copy of your identification card, latest EPF statement, salary slips or other documents if required. More so, with Citibank you’ll always be rewarded; new Citi Card members will be eligible to receive exciting and exclusive gifts when they sign up for a new credit card.

Personal Loan

What is fantastic about a personal loan is that it is flexible, also has a quick approval process, and in Malaysia, generally unsecured, meaning there is no need to put up your property as collateral. So taking out a personal loan is a good choice for financial help if you want to refurbish your home without the hassle of giving collateral or security such as fixed deposits, unit trusts, or other assets.

Citibank, through Citi Personal Loans, is now providing an exclusive flat interest rate of as low as 5.33% p.a compared to the previous rate of 5.88%, with no processing fee, no collateral required, making it one of the most attractive offers in the market for personal loans.

If you want to tear up those old kitchen floors and transform them anew, you can do so easily with Citi Personal Loans. You can take a loan of 10 times your monthly gross income or up to RM150,000, with no collateral, guarantor, or processing fees required. In addition, the loan tenure can be from 24 to 60 months, making it an ideal choice if you want flexible financial aid. And get this, the entire application and document submission process can be done completely online, making it very convenient especially during this lockdown.

Home Refinancing

When people mention home refinancing, they may be referring to one of two types. First, refinancing can be placing a mortgage on your property free from encumbrances; the second is mortgage refinancing, which is to take out a new loan with a fresh set of terms and conditions to replace your current loan.

What are the benefits of doing this? For one, you would be getting lower interest rates compared to credit cards and personal loans. Your loan tenure may be shortened so you can pay off your loan sooner, meaning lower monthly instalments over a shorter period, which will lead to apparent ease in your cash flow.

For example, Standard Chartered Bank offers a mortgage financing package that ticks all the boxes. Not only are they offering an interest rate as low as 2.82%, which is one of the lowest in the market, but the renovation costs will also become part of your new mortgage amount, and you will obtain a higher borrowing limit. Plus, the refinance package will consolidate your new mortgage payment, so you won’t have to pay off a separate loan.

This refinancing option allows borrowers to cash out the property appreciation value, which you can utilize for renovation to make your dream home a reality closer than you think.

With their Zero Moving Cost Package, the bank will absorb the loan legal fees, stamp duty, and valuation fees if you choose to refinance with them.

Alternatively, if you’re a person that can’t be bothered to deal with the extra costs incurred when applying for a loan, Standard Chartered Bank has got you covered. With their Zero Moving Cost Package, the bank will absorb the loan legal fees, stamp duty, and valuation fees if you choose to refinance with them. Even with the deduction of such fees, the interest rate is still at an exceptional low of 3.25%, making it a desirable offer.

Overdraft Facility


Overdraft facilities are a line of credit that you can access through a current account. This type of facility is similar to how a credit card would work, where the customer may withdraw cash up to a specific credit limit allowed by the bank.

Overdrafts can be either secured or unsecured, depending on what is available in different banks. Secured overdrafts will yield better interest rates as opposed to those unsecured.

This pick allows for enhanced financial flexibility as there is typically no limit on tenure, funds are available anytime without the need for further approval, and you can withdraw as much money as you need (within the credit limit) and as many times as you need. The interest rates are higher than that of personal loans and mortgage refinancing, but the advantage is that you are only charged interest on the amount you use.

Thus, if you are already in a line of work that requires frequent access to significant capital, like an investor or a businessman, applying for an overdraft facility for your home renovation on the side may be a good idea for you, but not so much for an average salaried worker.


In the end, you might want to think hard on whether or not a home renovation is the best choice for you and what reasons or justifications you might have to embark on your home improvement project. Detailed planning for what your renovation will entail is integral so that you can allocate the necessary budget for a smooth-sailing refurbishment. Furthermore, the choice between the multiple financing options will ultimately depend on your personal needs. As such, it requires a clear mind to balance the best financial decision for your ideal home.

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Why you should care

Here’s your guide to home financing options to help you achieve your dream home.

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