Renovation Loan

Converting your house into a dream home

Renovation Loans Melbourne

If you’ve had a dream about changing your home into something really special but think you can’t afford it, now’s the time to talk to us at MDM Finance. We have vast experience in all the renovation loans available.

Primarily, there are 3 types of loans that suit renovating projects. These are:

E
Refinancing
E
Construction
E
Personal
Here, we outline each type and how they may benefit you.

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Refinancing On Your Current Home Loan

Usually, home owners who are paying off their home loans regularly have built enough equity in their existing home and so are able to cover the additional costs for renovations easily by refinancing their existing 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.

Renovation loan broker in Melbourne

Apply For A Construction Loan

There are many business loans available for different situations. Here are the most common:

If there’s not enough equity in your property to cover the amount outright that you’ll need for the renovations, you may need to consider applying for a construction loan.

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

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.

If you need a loan, give us a call today!

03 9855 9290