Renovation Loan Malaysia 2026: Best Banks, Rates & How to Apply
By Threenity Capital · 1 April 2026 · 7 min read
Key Takeaway: A renovation loan in Malaysia lets you borrow up to RM150,000–RM300,000 at 5–8% per year — significantly cheaper than a personal loan at 10–18%. You must use the funds exclusively for renovation.
What is a Renovation Loan?
A renovation loan (also called a home improvement loan) is a secured or unsecured personal financing product specifically designed for home renovation purposes. Unlike a personal loan, renovation loans in Malaysia typically offer lower interest rates because they are tied to the property.
In Malaysia, renovation loans are offered by most major banks and come in two main structures — as a top-up to your existing home loan (similar in process to a refinance rumah) or as a standalone renovation loan.
Renovation Loan vs Personal Loan — Which is Better?
| Feature | Renovation Loan | Personal Loan |
|---|---|---|
| Interest Rate | 5–8% per annum | 10–18% per annum |
| Maximum Amount | Up to RM300,000 | Up to RM150,000 |
| Tenure | Up to 30 years (if top-up) | Up to 7 years |
| Approval Speed | 5–14 working days | 1–3 working days |
| Use of Funds | Renovation only | Any purpose |
| Monthly Instalment | Lower (longer tenure) | Higher (shorter tenure) |
For amounts above RM50,000, a renovation loan almost always works out significantly cheaper than a personal loan.
Best Banks for Renovation Loans in Malaysia 2026
| Bank | Max Amount | Rate (p.a.) | Notes |
|---|---|---|---|
| Maybank | RM 200,000 | 5.5–7% | Fast processing; flexi option |
| CIMB | RM 150,000 | 5.5–7.5% | Can top up existing CIMB loan |
| Public Bank | RM 300,000 | 5–6.5% | Lowest rates; strict eligibility |
| Hong Leong Bank | RM 150,000 | 6–7.5% | Same-day conditional approval |
| RHB Bank | RM 150,000 | 6–7.5% | Flexible employment types |
| BSN (Bank Simpanan Nasional) | RM 100,000 | 5–6% | Government servants — best rates |
| Affin Bank | RM 150,000 | 6–8% | Good for self-employed |
* Rates are indicative as of April 2026. Actual rates depend on your profile and the bank's assessment. Consult a mortgage advisor for the latest offers.
How Much Can You Borrow?
The maximum renovation loan amount depends on:
- Property value: Banks typically lend up to 20–30% of your property's current market value
- Existing loan balance: For top-up loans, total financing (original loan + renovation) cannot exceed 90% of property value — see our guide on pinjaman perumahan for the full eligibility process
- Your DSR: The additional instalment must not push your total DSR above the bank's limit (70–80%)
- Income type: Salaried government servants typically qualify for higher amounts at lower rates
Renovation Loan Example Calculation
| Renovation budget | RM 80,000 |
| Loan amount applied | RM 80,000 |
| Interest rate | 6.5% p.a. |
| Tenure | 10 years |
| Monthly instalment (approx.) | RM 906 |
| Total repayment | RM 108,720 |
| Total interest paid | RM 28,720 |
| vs Personal Loan at 12% p.a. | RM 38,400 interest — saving RM 9,680 |
Documents Required
Personal Documents
- ✓MyKad (front & back)
- ✓Latest 3 months payslip
- ✓Latest 3 months bank statement
- ✓EPF statement (last 12 months)
Property Documents
- ✓Land title / strata title
- ✓Previous SPA (if sub-sale)
- ✓Latest home loan statement (for top-up)
Renovation Documents
- ✓Contractor quotation (itemised)
- ✓Photos of current condition
- ✓Renovation plans (if structural changes)
Step-by-Step: How to Apply
- 1Get a detailed quotation from your contractor — itemised by work type. Banks require this.
- 2Check your DSR — make sure adding the renovation loan instalment keeps you below 75%.
- 3Compare at least 3 banks. For top-up loans, start with your existing home loan bank.
- 4Submit documents including IC, payslips, bank statements, and contractor quotation.
- 5Wait for approval (5–14 working days). Bank may conduct a valuation.
- 6Funds disbursed in stages — typically tied to renovation milestones verified by bank officer.
Pinjaman Renovasi Rumah Malaysia (BM)
Pinjaman renovasi di Malaysia membolehkan anda meminjam sehingga RM300,000 pada kadar faedah 5–8% setahun — jauh lebih murah daripada pinjaman peribadi. Dana mesti digunakan khusus untuk kerja-kerja renovasi dan anda perlu mengemukakan sebut harga kontraktor kepada bank. Semak kelayakan percuma dengan Threenity Capital untuk perbandingan tawaran bank terbaik.
Frequently Asked Questions
Can I get a renovation loan without a home loan?
Yes. Some banks offer standalone renovation loans without requiring an existing home loan. However, the amounts and rates may be less favourable. For larger amounts, a top-up to your existing home loan is usually better.
Can renovation loan be used to buy furniture?
It depends on the bank. Most renovation loans cover structural work, fixtures, and built-in items (kitchen cabinet, wardrobe). Movable furniture is sometimes excluded. Check with the bank during application.
How long does renovation loan approval take?
Typically 5–14 working days. Faster if you already have an account with the same bank.
What is the minimum income for a renovation loan?
Most banks require a minimum monthly income of RM2,000–RM3,000 for salaried employees. Self-employed applicants need to show 12–24 months of stable income.
Planning a Renovation? Check Your Eligibility First
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