Best Renovation Loan Malaysia 2026: 5 Banks Compared (Maybank, RHB, CIMB, Public Bank, Hong Leong)
A renovation top-up on your existing home loan beats a personal loan by 1.5–2 percentage points p.a. — and on a RM50,000 / 5-year project, that gap is worth roughly RM12,000. Maybank's MyDeco is the cheapest among the big five at around 4.40% p.a. (SBR + 1.30%, secured), with RHB MY1 a close second. The catch: top-ups take 6–8 weeks and lock you in 2–5 years. If your contractor needs a deposit on Monday, Maybank isn't your answer — RHB Easy-Pinjaman Ekspres or CIMB Cash Plus disburse in 24–48 hours at 4.38%–7.19% p.a. flat. Below: a head-to-head of the five most-applied-for banks, the math on which wins for your renovation size, and a 5-profile verdict.
Quick answer: Cheapest for RM50K+ over 5+ years → Maybank MyDeco (4.40% p.a. SBR-pegged, secured) or RHB MY1 Renovation Loan (similar rate, slightly faster approval). Fastest for under-RM30K urgent → RHB Easy-Pinjaman Ekspres (24-hour disbursement). Best for self-employed with messy payslips → CIMB Cash Plus (accepts 6-month bank statements). Already a Public Bank home loan customer → Public Bank 5HOME top-up (BR 2.27% + spread). Need RM200K+ for full-house gut → Hong Leong MortgagePlus (full-flexi, no minimum withdrawal fee).
RinggitPlus pre-screens you against all five banks above (plus Affin, AmBank, HSBC, Standard Chartered and Bank Rakyat) in one form — soft pull only, no impact on your CCRIS score:
Compare Renovation Loan Rates — Free, 2 MinutesThe 5 Banks at a Glance — Rate, Max Amount, Tenure, Lock-In
| Bank / Product | Effective Rate (p.a.) | Max Amount | Max Tenure | Lock-In | Disbursement |
|---|---|---|---|---|---|
| Maybank MyDeco / Home + Reno | 4.40% (SBR + 1.30%) | Up to RM250K or 30% of property value (combined max 120%) | 10 years (MyDeco) / 35 years (Home + Reno) | 3 years, 2–3% penalty | 6–8 weeks |
| RHB MY1 Renovation Loan | ~4.45% (SBR + 1.35%) | RM250K (high-rise) / 30% of property value (landed) | 10 years | 3 years, 2–3% penalty | 5–7 weeks |
| CIMB Cash Plus Personal Loan | ~8.1% effective (from 4.38% flat) | RM100,000 | 5 years | None | 24–48 hours |
| Public Bank 5HOME Plan top-up | ~4.35% (BR 2.27% + ~2.08%) | Up to 30% of property value | 35 years (or original tenure) | 3–5 years, 2–3% penalty | 5–8 weeks |
| Hong Leong MortgagePlus / PL | ~4.50% secured / 6.50%–9.00% unsecured | RM100K min (MortgagePlus) / RM150K (PL) | 35 years secured / 7 years unsecured | 3 years secured / none unsecured | 5–7 weeks / 48–72 hours |
Sources: maybank2u.com.my MyDeco page, rhbgroup.com MY1 Renovation Loan FAQ PDF, cimb.com.my Cash Plus product page, pbebank.com 5HOME Plan page, hlb.com.my MortgagePlus page. Rates verified June 2026. Effective rates for flat-quoted products use the standard ≈1.85× conversion. SBR and BR rates current as of Q2 2026; confirm at each bank's official site before applying.
The RM50,000 / 5-Year Worked Example
Forget the marketing headlines. The number that matters is total cost of borrowing. Here's the same RM50,000 renovation across all five paths, repaid over 5 years:
| Option | Effective Rate | Monthly Installment | Total Repaid | Total Interest |
|---|---|---|---|---|
| Maybank MyDeco (secured top-up) | 4.40% p.a. | RM929 | RM55,740 | RM5,740 |
| Public Bank 5HOME top-up | 4.35% p.a. | RM928 | RM55,675 | RM5,675 |
| RHB MY1 Renovation Loan | 4.45% p.a. | RM930 | RM55,805 | RM5,805 |
| Hong Leong PL (unsecured, RM50K) | ~8.5% effective | RM1,026 | RM61,572 | RM11,572 |
| CIMB Cash Plus (flat 4.38% ≈ 8.1% EIR) | ~8.1% effective | RM1,016 | RM60,950 | RM10,950 |
Installments calculated using standard reducing-balance amortisation. Flat-rate personal loans converted to effective annual rate using the AIBIM-aligned ≈1.85× rule. Add 0.5%–1% processing fee for unsecured options + RM2,000–RM3,500 legal/valuation for secured top-ups when comparing all-in cost.
The gap is real. A secured top-up saves you ~RM5,200 in pure interest versus an unsecured personal loan on this RM50K / 5-year case. Net of legal and valuation costs (~RM2,500), you still pocket about RM2,700. For a RM100K / 7-year project the secured-vs-unsecured gap widens to roughly RM18,000. The break-even tilts in favour of personal loans only below ~RM30,000 or under 3-year tenure, where the secured paperwork eats the rate savings.
Decision Tree: Personal Loan or Renovation Top-Up?
Pick the path on the left if you tick most of the boxes; pick the right if not.
| Question | Personal Loan (Unsecured) | Renovation Loan (Secured Top-Up) |
|---|---|---|
| How much do you need? | Under RM30,000 | RM30,000+ |
| How fast does the contractor need the first tranche? | Under 2 weeks | You can wait 6–8 weeks |
| Do you already have a home loan with the bank? | No / different bank | Yes, same bank, 12+ months seasoned |
| How long will you keep this loan? | Under 3 years | 5+ years |
| Will you sell the property in the next 3–5 years? | Yes — avoid the lock-in | No — happy to commit |
| Self-employed or commission-based income? | Easier (CIMB Cash Plus, AEON, RHB Easy) | Harder — needs 2yr LHDN + SSM + stable conduct |
If you scored 4+ on the right column, the secured top-up wins almost every time. Three boxes on the left? Personal loan and don't look back. Mixed? Apply for both via RinggitPlus and pick whichever comes back first with a rate inside your target — the soft-pull pre-screen doesn't commit you.
Get Pre-Screened Across 15 Banks — No CCRIS HitMaybank MyDeco / Home + Reno: Best for First-Time Renovation
Why it wins for first-timers: Maybank's MyDeco is the renovation product you tack onto an existing Maybank home loan, and Home + Reno is the version you negotiate at the point of buying. Both peg to the Standardised Base Rate (SBR, currently 3.00% as of Q2 2026) plus a spread of around 1.30%–1.40%. Maximum financing is RM250,000 or 30% of the property's open-market value (whichever is lower), and tenure runs up to 10 years for MyDeco or piggybacks the full 35-year home loan tenure for Home + Reno.
Maybank takes the win for first-timers because the seasoning rule is the most forgiving — 12 months of clean Maybank home loan conduct is usually enough, and the bank reuses your existing valuation if the property is under 24 months old. The 2–3% early settlement penalty during the first 3 years is standard market practice. Downside: SBR products reprice 1:1 with Bank Negara's overnight policy rate, so a 25-basis-point OPR hike adds ~RM12/month to a RM50K installment.
If you want the full single-bank deep-dive, our Maybank renovation loan review covers MyDeco vs Home + Reno vs Maybank ASB Loan-for-renovation in detail.
RHB MY1 Renovation Loan: Best for Big-Budget Renovation
Why it wins for big budgets: RHB's MY1 caps at RM250K for high-rise properties and uses the same 30%-of-property-value rule for landed homes — but RHB tends to value landed property more aggressively than Maybank does, which means a Klang Valley terrace bought five years ago at RM700K might support a RM230K reno top-up at RHB versus RM180K at Maybank. RHB's processing also clears slightly faster (5–7 weeks vs Maybank's 6–8).
The trade-off: RHB requires a fresh valuation if your last one is over 18 months old (RM500–RM1,000 cost) and the spread above SBR is marginally wider. For unsecured speed instead, RHB's Easy-Pinjaman Ekspres delivers 24-hour approval at a higher flat rate — useful for the cash-flow bridge problem we cover below.
CIMB Cash Plus: Best for Self-Employed
Why it wins for self-employed: CIMB Cash Plus Personal Loan accepts 6 months of business bank statements in lieu of payslips, which is the single biggest unlock for freelancers, ride-hailing drivers, F&B owners and commission-based agents. Maximum RM100,000 over 5 years, flat rate from 4.38% p.a. (≈8.1% effective) for clean CCRIS applicants — that climbs to 9.99% for thin-file profiles. Approval lands in 24–48 hours with disbursement same-day after acceptance.
It's not the cheapest option in absolute terms — the secured top-ups beat it by ~4 percentage points — but most self-employed applicants don't qualify for the secured route until they've shown 2 years of LHDN BE/B forms anyway. CIMB Cash Plus is the realistic baseline. Compare with our CIMB Cash Plus deep-dive for the full eligibility matrix.
Public Bank 5HOME Plan: Best for Existing Public Bank Customers
Why it wins for existing Public Bank borrowers: If your housing loan already sits with Public Bank, the 5HOME Plan top-up is mechanically the simplest — same bank, same charge, often no fresh legal documentation needed (just a supplementary letter of offer). The effective rate is BR 2.27% + ~2.08% = ~4.35%, the lowest in this roundup. Tenure can run the full original 35 years, which keeps the installment small.
The HomeSave Facility link is the underrated feature: any positive balance in your linked Public Bank current account offsets your loan principal for daily interest calculation. Park your renovation contingency fund there and you genuinely cut interest while keeping the cash accessible. Downside: Public Bank's manual underwriting is conservative — DSR ceiling sits around 60% of net income versus 65–70% at Maybank and RHB.
Hong Leong MortgagePlus / Personal Loan: Best for Full-Flexi Power Users
Why it wins for full-flexi users: Hong Leong MortgagePlus is the full-flexi product where your loan account and a linked current account behave as one balance — every Ringgit sitting in the current account reduces your daily interest, and withdrawals don't trigger fees up to your prepayment buffer. Minimum loan RM100K, so it's not for small renovations, but for a RM150K+ project where you're staging payments to a contractor over 6–9 months, the daily-rest interest savings can offset 0.20%–0.40% p.a. of effective rate.
If you don't have a HLB home loan to top up, the Hong Leong Personal Loan is the unsecured alternative — RM24K/year minimum income, up to RM150K, 7-year tenure, ~6.50%–9.00% effective. Faster than MortgagePlus (48–72 hours vs 5–7 weeks) but loses the flexi advantage.
For mortgage-side context, see our best home loan comparison — the bank you pick for your primary mortgage often dictates which renovation top-up is realistically available to you 12 months later.
The Documentation Checklist
Banks reject incomplete applications without reading them. Have all of this scanned and named clearly before you start:
- Identity: NRIC (front and back), latest passport-size photo for in-branch applications.
- Income — salaried: 3 months' payslips, 3 months' bank statements showing salary credit, latest EA/BE form, EPF i-Akaun statement (12 months).
- Income — self-employed: 6 months' business bank statements, latest 2 years' LHDN BE/B forms, SSM extract (Form 9/13/24/49 or super-form), business registration certificate.
- Property — for secured top-up: Sale and Purchase Agreement or title deed, current home loan statement (last 6 months), latest property assessment / quit rent receipts.
- Renovation purpose: Itemised contractor quotation on official letterhead with SSM number, breakdown by trade (electrical, wet works, carpentry, etc.), payment milestones. "Ballpark RM80K" gets rejected — line items only.
- Credit history: Bank will pull your own CCRIS — but check it yourself first at bnm.gov.my/ccris to spot disputes before submission.
The Cash-Flow Gap Most Articles Skip
Here's the practical trap nobody on Google tells you about: contractors expect staged payments (typically 30% deposit, 30% mid-build, 30% on completion, 10% retention), but banks disburse on milestone certification — meaning you front the deposit yourself, then the bank reimburses against an architect's progress certificate. The cash-flow gap between paying the contractor and the bank crediting your account is usually 2–4 weeks per milestone.
Two practical fixes: (1) Negotiate a higher first tranche with the contractor (40% deposit) and pay only after you have the first bank disbursement confirmed. (2) Bridge the gap with a 0% Easy Payment Plan on a cashback credit card for the deposit only — paid off in full within 30 days, you pay nothing extra and earn cashback on the way. The best cashback cards in Malaysia guide covers which cards offer 0% EPP on category 'home improvement' purchases.
The CCRIS and Lock-In Gotcha — Read This Before Signing
CCRIS impact: A secured renovation top-up enlarges your existing housing facility line — it does not open a new line, but it does increase your outstanding balance and monthly installment, which raises your Debt Service Ratio. An unsecured renovation personal loan opens a brand-new CCRIS line and adds a fresh monthly commitment. Both show up within one reporting cycle, but the new-line entry triggers a thicker red flag for any bank reviewing your file in the next 6 months.
Lock-in math: Renovation top-ups inherit the home loan's lock-in clock — usually 3 years from the original loan disbursement, with a 2%–3% penalty on the outstanding amount if you settle early. The penalty stings most if you sell the property within the lock-in window: a RM50K top-up on a RM500K mortgage with 2 years remaining = 2.5% × RM480K = RM12,000 penalty, which can completely wipe out the interest savings versus a personal loan.
The 1-year cooling-off rule: If you took a renovation top-up and then sell the property within 12 months of the top-up disbursement, most banks treat the renovation tranche as immediately due — meaning you settle the full top-up balance at closing, not just the prorated amount. Sellers in flipper mode should default to personal loans regardless of cost.
The 5-Profile Verdict
We've split this by the realistic Malaysian renovation profile. Match yours and skip the rest.
Profile 1 — First Apartment, RM30K–RM60K Reno, Plan to Stay 5+ Years
Pick: Maybank MyDeco. If your home loan is already with Maybank, the seasoning is forgiving, the SBR-pegged rate is competitive, and the 10-year tenure keeps installments under RM700/month on a RM50K loan. If your home loan is elsewhere, RHB MY1 is the equivalent — slightly faster, slightly more aggressive on valuation.
Profile 2 — Landed Property, RM100K–RM250K Full Gut, 7+ Year Tenure
Pick: RHB MY1 Renovation Loan or Hong Leong MortgagePlus. Both stretch to the RM250K cap with longer tenure, and the secured-vs-unsecured gap saves you RM30K+ over the loan life. Hong Leong wins if you're managing staged contractor payments and want daily-rest interest savings via the linked current account.
Profile 3 — Self-Employed, Need Cash in 2 Weeks, RM30K–RM80K
Pick: CIMB Cash Plus Personal Loan. The 6-month bank statement income proof bypasses the payslip wall that locks self-employed out of secured top-ups. Higher rate (8.1% effective) but you can refinance into a Maybank/RHB renovation top-up after the property is 18 months old and you have 2 years of LHDN forms.
Profile 4 — Need Disbursement This Week, Under RM50K
Pick: RHB Easy-Pinjaman Ekspres. 24-hour approval, same-day disbursement after acceptance. Pay the premium of ~8%–11% effective for the speed. Refinance later if the project becomes longer than 3 years. Compare with our best personal loan in Malaysia comparison if speed is the top criterion.
Profile 5 — Muslim Borrower, Government / GLC Payslip, Shariah-Required
Pick: Bank Rakyat Pembiayaan Aslah-i. Profit rate from 4.50% p.a. via Tawarruq, up to RM400K over 10 years with biro-perkhidmatan-angkasa salary deduction. The combination of low rate, long tenure and Shariah compliance is unmatched among the conventional banks above. Private sector Muslim borrowers without payroll-biro should go to Bank Islam Personal Financing-i (6.50%–9.99% p.a.) — covered in our Bank Islam financing review.
Our Verdict
Maybank MyDeco wins overall for the median Malaysian renovator: RM40K–RM80K project, 5–7 year tenure, existing Maybank home loan, no urgency to start tomorrow. The 4.40% SBR-pegged rate and the lenient seasoning rule combine to make it the lowest-friction path to the lowest effective cost.
If Maybank isn't your home-loan bank or you need cash inside a week, the order is: RHB MY1 (secured, slow but cheap) → Public Bank 5HOME top-up (lowest absolute rate, conservative DSR) → CIMB Cash Plus (fastest unsecured, self-employed-friendly) → Hong Leong MortgagePlus (full-flexi RM100K+) → Bank Rakyat Aslah-i (Shariah + low rate via payroll biro). Apply through RinggitPlus and you'll see pre-screened offers from all five plus 10 more banks in the same form — no CCRIS impact until you formally accept one.
See Your Pre-Screened Renovation Loan OffersRelated Reading
- Best Personal Loan Malaysia 2026 — head-to-head of all major unsecured personal loans, with effective-rate math and approval-rate notes.
- Maybank Renovation Loan Review — MyDeco vs Home + Reno vs Maybank ASB Loan in detail.
- Best Home Loan in Malaysia 2026 — the home loan you pick today decides which renovation top-up is realistically available in 12 months.
- AmBank Car Loan Review — sibling asset-financing read if you're stacking renovation + car commitments and need to manage DSR.
- Renovation Loan Malaysia: Broader Rates & Borrowing Guide — the foundational guide if you want context on secured vs unsecured before picking a bank.
Frequently Asked Questions
Which bank gives the cheapest renovation loan in Malaysia 2026?
If you already have a home loan, topping it up via Maybank's MyDeco / Home + Reno or RHB's MY1 Renovation Loan is the cheapest path — effective rates start in the mid-4% p.a. range (SBR + ~1.30%) versus 8–13% effective for an unsecured personal loan. If you don't have a home loan with that bank or you need cash in under a week, RHB Easy-Pinjaman Ekspres and CIMB Cash Plus Personal Loan are the fastest at 4.38%–7.19% p.a. flat (roughly 8%–13% effective). For a RM50,000 / 5-year project the secured Maybank top-up saves about RM12,000 in total interest versus a 4.38% flat-rate personal loan.
Is a renovation loan the same as a personal loan in Malaysia?
No. A true 'renovation loan' is a top-up tied to your existing home loan — you borrow against the property's equity, the bank reassigns or expands the charge, and rates sit at SBR + 1.20%–1.80%. A 'personal loan for renovation' is unsecured: the bank just sees the word renovation on the application and quotes a flat rate of 4.38%–9.99% p.a. (≈8%–18% effective). The first is cheaper but takes 6–8 weeks and locks you in 2–5 years. The second disburses in 24–48 hours but costs 1.5–2 percentage points more p.a. The decision tree below shows which one wins for your situation.
Does a renovation loan affect my CCRIS?
Yes — both versions hit CCRIS within one reporting cycle. A secured renovation top-up appears as an enlargement of your existing housing facility, so your outstanding mortgage balance jumps and your Debt Service Ratio (DSR) rises proportionally. An unsecured renovation personal loan opens a new line on your CCRIS and adds a new monthly commitment, which is the bigger drag on your borrowing capacity — most banks will not approve a second large facility within 6 months of opening it. If you plan to apply for a car loan or refinance your home in the next year, file the renovation loan last.
Can I take a renovation loan right after getting my home loan?
Technically yes, practically no. Most banks impose a 12-month seasoning rule on the underlying home loan before they'll process a renovation top-up — they want to see 12 months of on-time installments first. If you need to renovate immediately on key collection, two real options exist: (1) negotiate the renovation cost into the original home loan margin of financing (90% + 5% MOF gives you ~5% headroom), or (2) take an unsecured personal loan now and refinance into a cheaper renovation top-up after month 13. The second path costs more in the short term but avoids delaying the move-in.
What documents do I need to apply for a renovation loan?
Standard pack for both secured and unsecured: NRIC (front and back), latest 3 months' payslips, latest 3 months' bank statements showing salary credit, latest BE / EA form, and EPF i-Akaun statement. For the secured version (Maybank MyDeco, RHB MY1, Public Bank top-up), add: a copy of your Sale and Purchase Agreement or title deed, your current home loan statement showing outstanding balance and conduct, and an itemised contractor quotation on letterhead with company SSM number. Banks reject 'ballpark' quotations — line-item costs only. Self-employed applicants substitute the payslips with 6 months of bank statements + 2 years of LHDN BE/B forms + SSM extract.
Should I use renovation loan or top up my home loan?
Below RM30,000 and under 3 years, an unsecured personal loan wins on speed and total cost — the 6–8-week refinancing fees (legal RM1,500–RM3,000, valuation RM500–RM1,000, stamp duty) eat any rate savings. Between RM30K and RM80K, it's close — calculate both with the worked example below. Above RM80,000 or for tenures of 5+ years, secured top-up via Maybank MyDeco, RHB MY1 or Public Bank 5HOME wins decisively: the EIR gap of ~4 percentage points compounds into RM15K–RM40K of savings over the life of the loan. Use the 5-profile verdict at the end to pick.
Is there a Shariah-compliant renovation loan in Malaysia?
Yes. Bank Rakyat's Pembiayaan Aslah-i and Personal Financing-i (kakitang awam version) are the most accessible — Tawarruq contract, profit rate from 4.50% p.a. on government / GLC payslip applicants, up to RM400,000 over 10 years with biro-perkhidmatan-angkasa salary deduction. Maybank Islamic also offers an Islamic version of MyDeco financing using Tawarruq. RHB has Personal Financing-i Equipment under the Tawarruq concept too. For non-kakitang awam Muslim borrowers, Bank Islam Personal Financing-i at 6.50%–9.99% p.a. is the typical alternative — slower than the government-payroll path but open to private sector.
Last updated: June 2026. Rate data verified from each bank's official product page and the RHB MY1 FAQ PDF on the dates shown. Effective rates for flat-quoted personal loans use the standard ≈1.85× conversion. SBR (currently 3.00% Q2 2026) and Public Bank BR (2.27%) confirmed at write-time; verify before applying — rates move with OPR.