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Renovation Loan Malaysia: What Is It and Should You Apply for It?

Property renovation in Malaysia can be expensive, but you can realise your vision with a renovation loan without completely blowing your bank account.

Malaysians love renovating their homes, and everyone has their own style when it comes to renovating their home. You can go for simple, functional, contemporary or an award-winning style that comes straight from a magazine.

Whichever style you choose, it all comes down to one crucial factor: the renovation cost. Thus, is it a good idea to get financing such as a renovation loan for it? Let us explore this further.

What is a Renovation Loan in Malaysia?

What is a Renovation Loan

As the name suggests, a renovation loan is a loan facility created solely for the purpose of renovating one’s home, including but not limited to remodelling, repair, new furniture or fixtures, new lighting, etc. They cost money and sometimes, a lot of it.

Before we start compiling all necessary documentation and dwell further on renovation loans, let us understand further what renovation is.

What is renovation?

Home renovation lingers on most homeowners’ and investors’ minds in Malaysia, and for some of us, it belongs in the top ten of our bucket lists.

On the one hand, renovation can be an excellent way to rejuvenate your home, especially if you’re tired of looking at the same wall paint or those cracks on the kitchen tiles.

On the other hand, some see renovation as an investment, a way to increase the value of their home.

Generally, home renovation covers three aspects, namely restoration, remodelling and renovation. The differences are as follows:


  • Restoring a home is about fixing or replacing broken and worn-out things, and it is about reinvigorating the house to its original or better look.


  • Remodelling involves structural modifications, including moving or replacing walls, combining rooms or space extensions.


  • Renovation is the most used term in Malaysia. It covers various aspects of refurbishment styles, including but not limited to redecorating a room, adding new furniture and fixtures, and changing the positions or materials of doors and windows.

Now that you understand what renovation is all about, it is time to get your floor plan, contractor and budget ready. The next step will be applying for a renovation loan.

But wait a minute, is a renovation loan the only financing option for me? Apparently, it is not. There are two types of bank loans that you can apply for to renovate your home, namely personal loans and renovation loan.

Personal Loan vs. Renovation Loan

1. Personal Loan

Personal loans are the most common choice if you need financing to renovate your home. All major banks in Malaysia offer personal loan facilities, though with different terms and conditions.

The terms and conditions vary between banks; hence it is wise to do your homework and financial planning before taking out a personal loan. Choose a loan that suits your needs and financial standing to ensure a comfortable repayment process down the road.

Then, all you need to do is to decide your loan amount and browse for a bank that offers you the lowest interest rate for the intended loan amount. Take all the time you need to compare and come up with a final decision.

The last thing you would want is to land yourself in debt you cannot repay.

You can browse and compare some of the personal loan interest rates by major banks in Malaysia here.

2. Renovation Loan

Renovation loans are a loan product offered by banks to borrowers for the sole purpose of renovating or refurbishing their home or property.

In Malaysia, a renovation loan is usually available to borrowers who have an existing housing loan with the same bank or bundled together with the loan package.

With a renovation loan, you need not tap into your savings and worry about cash flow. However, like a personal loan, a renovation loan comes with an interest rate, and it varies between banks.

Note that a renovation loan can only be used for the intended purpose and cannot be diverted towards any other area of spend. Most banks will require the applicant to either provide invoices, proof of homeownership or being a family member of the homeowner of the said property.

Here are some of the renovation loans offered by major banks in Malaysia:

What to consider before applying for a renovation loan in Malaysia

before applying for a renovation loan

There is no absolute right or wrong in taking out a renovation loan in Malaysia. Like other loan packages, taking a renovation loan to finance your dream home makeover project requires a considerable amount of research and commitment.

Above all, it all comes down to 2 crucial factors, namely:

1. Purpose of renovation

On the one hand, if your home needs immediate repair or you wish to give your home a fresh new look, taking out a renovation loan would be the best option for you.

On the other hand, if you are considering a renovation to increase the value of your home, you need to understand the scope of renovation you are doing. Understanding the renovation scope will help you make an informed decision and foresee its return on investment.

However, there is no guarantee that renovation will add value to your home.

2. Planning of renovation

Whether it is a dream home makeover project or investment purpose, you need to plan your renovation schedule and budget.

Aside from considering the cost of the renovation itself, you will also need to consider the actual lifetime cost of the intended renovation loan.


If you are taking out an RM25,000 renovation loan with an interest rate of 6% per anum and paying a monthly instalment of RM333 over a tenure of 10 years, then the renovation costs could end up costing you RM40,000 in repayment!

That does not sound like a worthwhile investment, especially if you are renovating to increase your property value.

Hence, it is essential for you to carefully consider the cost and benefits and decide if taking out a renovation loan or even undertaking renovation is the right path for you.

How can BlueBricks help?

BlueBricks might not be able to give you any creative input on your next dream home makeover project. However, our renovation division can provide a one-stop renovation solution for your dream house, helping you secure a bank loan to refurbish or renovate it and ensuring a higher chance of approval of your renovation loan application.

Leading loan agency company in Malaysia

BlueBricks has extensive experience as a loan specialist providing loan consultancy services and comprehensive loan rejected services.

If you submit a new loan application, BlueBricks offers FREE consultation and reports for CCRIS and CTOS prior to the submission. Above all, we do not charge any prepayment for the provision of said services.

Loan Rejected Services

If your renovation loan application is rejected, worry not.

BlueBricks is a one-stop solution provider of comprehensive loan rejected services, including providing clients with a renovation loan or personal loan rejected services.

Read more on how we understand and resolve your rejected loan application.

In case of a rejection, we can help identify the underlying problems and reasons for rejection, formulate a strategy, execute amendment and rearrangement, and resubmit to the bank with a higher chance of approval.

You can enquire more about our loan rejected services to help you with your renovation loan application.

Renovation Loan in Malaysia – FAQ

Taking out a renovation loan is an exciting opportunity for homeowners and should not be taken lightly. Hence, we have compiled a short guide to help you with your renovation loan application.

Can I use the capital from the renovation loan for other areas of spend?

Renovation loans are solely intended for property renovation. Nevertheless, if you wish to use the capital from the loan, BlueBricks will be glad to assist you with that.

Is a renovation loan a secured loan?

No. A Renovation loan is an unsecured loan that requires no collateral or security.

Does a renovation loan cover either one or all of the following aspects of property refresh; restoration, remodelling and renovation?

Yes. A renovation loan can cover all of the above aspects.

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Picture of Wilson Wai Kit

Wilson Wai Kit

Senior Consultant

With extensive banking experience, notably as a mortgage sales officer at UOB Bank, Wilson leverages his understanding of loan applications and approvals to offer financial insights and support to empower individuals to make informed decisions regarding their financial futures.

Feel free to contact him for assistance with your financial needs!

I want to know about bank loans
Picture of Wilson Wai Kit

Wilson Wai Kit

Senior Consultant

With extensive banking experience, notably as a mortgage sales officer at UOB Bank, Wilson leverages his understanding of loan applications and approvals to offer financial insights and support to empower individuals to make informed decisions regarding their financial futures.

Feel free to contact him for assistance with your financial needs!

I want to know about bank loans



About Bluebricks

BlueBricks Holding is one of the top ten leading loan agency companies in Malaysia in terms of loan approval rates. As a leading loan agency company, we have extensive knowledge and experience in mortgage, personal loans, and business loans, and this enables us to help our customers to get the deal that is best suitable to them.

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