If you’re considering a renovation but you’re not sure the best way to finance the job, there are a few options to consider no matter how big or small the project. From refinancing, redrawing funds from your current home loan, or even taking out a personal loan, there's an option to suit all renovations sizes and budgets.
Renovations are often a great time to consider refinancing and allow you to apply for extra funds to cover the cost of a renovation, while also getting a better interest rate on your home loan. While there can be a cost to refinance, the benefits of doing so will generally outweigh any incurred fees as a lower interest rate may shorten the term of your loan and reduce your minimum repayments.
If your equity is less than 20% of the property value, we may require you to take out Lenders Mortgage Insurance (LMI) when you switch. This protects Auswide Bank if you're unable to make repayments on your home loan.
Your home's equity is the difference between how much your home is worth (as valued by an appraiser) and the amount you owe on your mortgage. Equity is usually acquired through reducing the home loan balance or the value of your home having increased over time.
Once you know how much equity you have you can apply for a loan increase or alternatively a line of credit with a pre-approved borrowing limit.
If you've been paying more than the minimum required mortgage repayments then it's likely you're ahead in your home loan and have built up surplus funds. If your home loan allows it, you could redraw this money to fund the renovation, however it's important to note not all loans have a redraw option.
A personal loan is great for smaller and mid-size renovation projects, especially if you don't have enough equity, or are unable to redraw as part of your home loan.
Once you know how much money you need to borrow, a personal loan can be processed quickly with funds deposited directly into your account.
A fixed rate loan with all the benefits of a variable home loan including an optional 100% offset account, redraw facility~ and extra payments+.
- 5.74%p.a. Interest rate
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6.37%p.a.Comparison rate
Home loans don't need to be complicated. Our award-winning Basic Home Loan is a flexible, 'no fuss' home loan with a competitive variable rate.
- From 5.99%p.a. Interest rate
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6.02%p.a.Comparison rate
A variable rate loan jam packed with features including an optional 100% offset account, redraw facility~ and extra payments so you can pay off your loan sooner.
- From 5.99%p.a. Interest rate
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6.34%p.a.Comparison rate
Does your kitchen need modernising? Does your flooring need revamping or your walls need repainting? If you’re considering a renovation, a personal loan is great for smaller and mid-size renovation projects. Once you know how much money you need to borrow, a personal loan can be processed quickly with funds deposited directly into your account.
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