Renovation Loans

Is it time to replace the roof or give the house a fresh coat of paint? Need a new kitchen or an extra bathroom for your teenage daughter?

You have a lot of ideas and plans that you want to do with your home, but lack the funds to turn your vision into reality.

What are your options to fund your home renovation plans…

#1 – Equity Release / Top Up Home Loan

This is probably the most common way people borrow money when they want to renovate. It involves borrowing against the current value of your home, before any value-adding renovations and in most cases allows you to obtain the funds upfront.

One possible issue with this approach is if the cost of your renovations are more than the equity you have available. If you run out of money mid-renovation it may be difficult to get extra funding from the banks.

#2 – Construction Loan

If you’re planning to completely transform your home and undergo a major makeover, this may be a good option as you can spread the cost over full construction time. You could even possibly borrow up to 90 per cent of the end value of your home. With a construction loan, the lender will assess the value of the property as if the renovations have been completed, which should allow you to borrow more money.

Typically the lender will require you to be using a licensed builder and to have council approved building plans. The lender will also control the release of the funds through progress payments.

#3 – Personal Loans

#4 – Credit Cards

Credit cards are the least desirable way to fund your renovation project. However for really small projects, like painting a couple of bedrooms, the extra interest you may pay on the credit card might be less than the fee’s you would have to pay to get a loan.

Looking to renovate your home?

You might be wondering how much you can spend, what you can afford to repay, whether the bank lends you enough to pay for your renovation and how you pay the builder. I am here to work through the options with you, guiding you through the process to get a successful outcome.

Use the link below to make an appointment for a free and no-obligation discussion around your renovation plans.

Best of all, we don’t charge you a fee to use our service as we are paid by the lender when your home loan settles.