Building & Renovation Finance
Financing Your Renovation
Being approved in advance for funding for your renovation can help you prepare, then stick to, a budget. It could also ensure that your renovation is completed quickly, because the project won’t need to be put on hold until you can afford to continue.
Below we’ve listed various ways of funding your renovation, depending on your budget and the size of the project –
You Can Use the Equity in Your Home
With certain banks, if you’re an eligible customer they may allow you to use the equity in your property to finance your renovation, with either a Top-up or a Re-draw –
You may be at a time in your life when you need some extra cash, or perhaps you wish to consolidate your debts or even do some renovations to your home; then topping up your home loan could be the perfect solution for you. Without taking out a separate loan you can use your existing home loan to borrow additional funds, thus saving paperwork and time. You’ll also be able to take advantage of a lower interest rate, when compared to other loan types.
A fast and easy option is to redraw on your existing home loan. If you already have a Variable Rate Home Loan, plus you’ve been making additional repayments on your mortgage, you should be able to redraw these funds to pay for your renovation.
Refinancing Your Home Loan
Home renovations are the perfect opportunity to review your home loan and determine if it still suits your needs. Our lending specialists are available to see if there’s a better flexible home loan for you and help you make the change. You can fund your renovations by refinancing your home loan, thus enjoying flexible repayments and a wider range of features.
Apply for a Construction Loan
If you’re ready to start building or renovating, a construction loan can help you get started. It doesn’t matter whether it’s a complete knockdown rebuild or a small extension, a construction loan allows you to progressively draw-down funds as your invoices arrive. This is a great way of saving money because you only pay interest on the progress payments, until such time as the loan has been fully drawn.
A Line of Credit
A Line of Credit gives you the flexibility and freedom to withdraw funds from your home loan up to an agreed limit: alternatively, you can increase your home loan balance to access additional funds. The latter option is perfect for those small home renovation projects.
Other Financing Options
- You may be able to get a personal loan of (say) $5000 or more for smaller renovations, and with a variable rate loan you’ll be able to make extra repayments to ensure that your loan is paid off sooner, and without penalty. Personal loans will often have a lower interest rate than credit cards, and if you choose an unsecured loan there’s usually no need to provide collateral.
- It’s hard to beat the convenience of a credit card, particularly when it comes to smaller renovation projects. If you won’t be paying the balance back straight away make sure you choose a low interest rate credit card.
If you have any questions at all about financing your renovation project, please contact our Senior Credit Adviser, Ben Spyker on (direct line) 1300-668-360. Ben will work with you to ensure you make the right decisions for your specific situation. Alternatively, you may prefer to fill out our short form below.