How do I fund home renovations?

Wanting to make some changes to your home? Whether it be a small painting job or something larger, like a second storey extension, we can help you get your renovation loan approved faster than your new paint can dry!

Considering your finance options upfront is vital and will allow you to gauge exactly what renovations will fit within your budget.

We strongly advise you plan ahead and estimate a realistic spend per area of your house being renovated as you don’t want to run out of money before your renovations are finished!

It’s also important to consider the extent of your renovations because it will directly influence the type of loan required and the necessary documentation, whether it be for the lender or your council. Keep in mind your local council should be approached nice and early for larger renovations, as sometimes building approvals can take a lot longer than you expect.

How can we help?

Utilising equity

Drawing funds out of your existing home loan where equity is available can often be an easy way to fund renovations and quickly obtain the money you need to get started.

Construction loans

Typically used for larger scale projects, construction loans are a little different to an everyday home loan however with a bit more information and planning we can get you organised for approval.

Personal loans

An option for those looking at smaller projects with limited available equity, personal loans may provide you with enough funding to get your renovation complete.


What is equity?

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Equity is the difference between the value of your property and the amount you owe on your home loan. Available equity may leave you in a position to renovate your home without any actual savings. A free property valuation can help evaluate this.

What do I need to help the progress?

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We can talk you through everything the lenders will require so you can get organized and send everything through for us. We’ll then submit your application for you and ensure it’s a smooth process. Items we’ll likely need are:

Proof of income (pay slips and bank statements)
A deposit backed by a proven savings history
A good credit history (we can still help if you don’t)

How much can I borrow?

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Generally the more money you earn and the less debt you have, the more your capacity to borrow will be. Each lender will be different, and we will assess your personal situation when we meet up. In the meantime, check out our borrowing power calculator to give you an idea of how much you can borrow.

What is a loan to value ratio?

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It sounds a bit dry, but Loan to Value Ratio is actually the amount of money you wish to borrow in comparison to the value of your property. So, say you want to buy a house valued at $500,000 and a have a $100,000 deposit, your Loan to Value Ration would be 80%. Most lenders adjust their interest rates relative to the LVR and have specific ratios to which they lend.

What’s the difference between variable and fixed rates?

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Variable interest rates fluctuate at your banks discretion but usually in line with movements in official interest rates set by the Reserve Bank of Australia. A variable rate loan is beneficial when rates are on the decline and when you want flexibility in your home loan. Fixed interest rates don’t fluctuate for a certain time period and are most beneficial when rates are on the rise or you require certainty over repayments.

Let’s have a one-on-one chat

Get an obligation free home loan and interest rate consultation with one of our brokers today.
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