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When it comes to financing your next renovation project, the good news is that there are few efficient ways you can start a remodelling of your property without drawing your valuable cash savings.
A good starting point is to work out what your remodelling will cost and how you propose to finance the project. Analyse whether the renovation is non-structural or structural.
Non-structural Renovation: These renovations are not expensive as it includes cosmetic changes such as changing the carpet in a room or a new coat of paint.
Structural Renovation: This type of renovation can cost arm and leg. It consists of more significant changes to a dwelling, such as altering the house’s layout – building new walls, moving old ones, etc.
If your current mortgage has a redraw facility and you have been making extra payments on your loan, you may be eligible to withdraw the money and use them to finance your renovation.
You may want to think about topping up your mortgage by accessing your redraw facility or home equity.
A loan for a significant renovation or a new home lets you gradually draw down funds as your construction invoices come in. It is an excellent way to save as you only pay interest on the money you have drawn on.
This loan leverages the equity in your property to borrow for a personal purpose. According to the home valuation standards, equity is calculated by deducting the amount you owe on your mortgage from the market value of your property.
When you are looking into more minor renovations, a personal loan could be an option. However, it is imperative to note that these loans often bear higher interest rates and shorter loan terms.
It is one of the flexible loan arrangements with a particular credit limit to be used at your preference. This type of funding often refers to as an equity loan. Interest is charged on the outstanding rather than the entire loan amount.
When you want to learn other finance options available to you or whether you can obtain equity in your mortgage, speak to our professional mortgage adviser. They will evaluate your current financial situation and recommend financing options to meet your short and long-term goals.
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”