Renovation Loan
Converting your house into a dream home
Renovation Loans Melbourne
Primarily, there are 3 types of loans that suit renovating projects. These are:
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Refinancing On Your Current Home Loan
This is the best loan for a large renovation, such as adding an extension or another storey onto your existing home.
If you are eligible to borrow for your renovation based on your existing home equity, a simple way to set up a refinance loan is to increase your loan size and place the renovation funds into an offset account. That way, you are effectively not paying interest on the ‘renovation’ amount until you use the funds.
Another option is a line of credit, allowing you to access funds as you need them. This charges interest on the balance owing on your account.
We suggest you check out our Refinancing loans page for more information.
Apply For A Construction Loan
There are many business loans available for different situations. Here are the most common:
A construction loan is a loan based on the final (post-renovation) value of your property, which allows you to draw down funds progressively as the renovation proceeds.
These loans can be interest-only for a period of time and will revert to principal and interest at a future date or at the completion of the project. This loan is also suitable for large renovation projects.
For more details, check out our Construction loans page.
Take Out A Personal Loan
What if you’re only wanting a loan for a job that costs relatively little, such as getting new flooring or a new roof?
In this case, a personal loan may be the most suitable solution for you.
Personal loans provide a convenient and fast way of funding a variety of activities and are available as secured or unsecured loans. It’s true that personal loans often attract much higher interest rates than most mortgages.
However, rates do vary considerably and we can usually find you one that will suit your budget.