Last Updated: 9th April, 2024

Access Equity In Your Home Loan To Renovate

Published by Otto Dargan on March 24, 2021

Property values are skyrocketing. With affordability hitting new lows, you can free up some money through refinancing to fund your renovation project.

Release equity to achieve your financial goals

The sharper your interest rate is, the lower your overall loan balance will be. This means that you’ll be able to release more equity.

This allows you to:

  • Renovate your home
  • Buy another property
  • Invest in a business
  • Consolidate your debts, such as personal loans or credit cards into your home loan
  • Buy a new car or a boat
  • Keep funds on standby for any emergencies
  • Repay a debt to the Australian Taxation Office (ATO)

If you’re looking to renovate, you may also qualify for the HomeBuilder grant – as long as the renovations are worth between $150,000 and $750,000.

Fixed interest rates are below 2%

The fixed rates for home loans are the lowest they’ve been in Australian history.The Big Four banks have slashed their fixed interest rates as low as 1.79% p.a. for 2 years fixed loan term.

Commonwealth Bank of Australia (CBA) has cut its fixed rate below 2%, following the lead of other big banks over the last few weeks.

There’s no better time to make sure your loan suits your needs and consider refinancing to get a better deal.

As rates continue to drop, it might not always be the best move to go for a ‘cheap’ loan with cashback offerings or similar draws.

Big four banks roll out relief packages for flood victims

Some lenders, including the big four banks, have come forward in support of the NSW flood victims with loan repayment deferrals.

The federal government has also activated the Australian Government Disaster Recovery Payment, which provides payments of $1,000 for eligible adults and $400 for eligible children.

The relief packages from the lenders mostly include:

  • A deferral in your mortgage repayments
  • Waived fees and charges, including break costs when accessing your term deposits early
  • Debt consolidation to better manage your repayments
  • A deferral in interest repayments (on a case-by-case basis)
  • Waived fees for restructuring existing loans
  • Additional finance offers to help cover cash flow shortages

Our expert mortgage brokers are here to assist and advise you with your situation.

If you’re affected by the flood and want to discuss your best options, call us at 1300 889 743 or fill in our free online assessment form.

labelCategory: Mortgage News