renovate

Making home improvements can be a great investment to your property.  But, the work can be costly so you will need a renovation home loan, which is similar to a construction home loan.

Whereas a construction home loan is for building a new home or making major renovations to an existing home, a renovation home loan is for less major renovations to an existing property and finance can come in many forms.

Home improvements have once again increased in popularity due to the economic crisis affecting the housing market.  Homeowners realise that improving their existing home is a far more economical option to selling the old one and buying another one. After all, if you decide to sell your home, you have high agent’s fees eating into your profits and buying a new one means more stamp duty, moving costs and the hassle of shifting to a new home.

Home improvement loans are home loans used to finance improvements on your house or property. These loans are used to maintain or increase the value of your home. This can include repairs, a new kitchen, a new bathroom, an extension or general property improvements. Landscape improvements and swimming pools can also in many cases be considered home improvement. Generally, all actions that can be considered to increase the value of the property in such a way that it increases the expected sales value of the home or the property are to be considered home improvements.


Types of home improvement loans
There are several different loan and financing types available:

• First mortgage
• Second mortgage loans (Home equity loans, Home equity line of credit)
• Refinancing solutions
• Unsecured loans (Personal loans)
• Grants

How to Apply for a Renovation Loan
Banks are willing to assist people wanting to complete home improvements but in different ways.  Some banks may view really major home improvements to be a form of construction loan, while other banks may simply extend a line of credit to you based on your existing equity. 

Talk to a local mortgage broker before approaching the banks.  Your own financial situation will be assessed to decide what is best for you.  We will look at your individual situation and assist you to find a lender that will meet your needs.  Our mortgage brokers are experienced and highly trained, and can meet with you whenever and wherever is convenient to you.

If you are planning to carry out renovations on your existing property, this is an exciting time.  Make sure you secure the correct finance suitable for the job and make your money work harder for you.  Your broker can recommend products and loans that will maximise the effect of the work that you plan to carry out.  Talk to us to find out how to increase the value of your property and the equity in your home.

Call us today on 1300 787 665 or simply fill out the form and submit to us on line.  A local mortgage broker is ready to talk to you today!