Renovation Loan

Depending on your personal situation and the type of renovation you have in mind, you can secure a loan suitable for your specific needs. Discovering how to qualify is the first step toward successfully funding your project.

Dive deeper into the full breakdown below.

How much can I borrow?

• Minor renovations with a licensed builder: You can typically borrow 95% of the purchase price plus the cost of renovations for cosmetic renovations.
• Minor renovations with no builder: You can usually borrow up to 90% of the purchase price plus the cost of renovations.
• Major renovations: You can usually borrow up to 80% unless you have a contract builder, in which case you can borrow 95% of the purchase price plus the cost of the renovations.
• Knockdown / rebuild: You can normally borrow up to 90% of the land value or 95% of the total land’s cost plus construction costs with a licensed builder.
• Knockdown / rebuild with no builder: You can borrow up to 60% of the cost of the land and the renovations if you’re doing it yourself.
• Low doc: You can borrow up to 80% of the purchase price plus construction cost.
• Borrow 105% of the property value: If your parents can act as a guarantor, you can borrow the full purchase amount including completion costs.
• Discounts: Competitive professional package and basic loan discounts are available.

Call us on 1300 889 743 or complete our free assessment form, and we can let you know how much you can borrow for a renovation loan.

What are the benefits of renovating?

Renovating can be a cost-effective alternative to buying a new property, as purchasing a fixer-upper is often cheaper than a fully renovated home. It also helps you avoid high transaction costs such as stamp duty, agent fees, and moving expenses. Renovations offer flexibility to adapt your home to changing lifestyle needs while staying in your preferred neighbourhood. When done strategically, renovations can increase property value and build equity, while allowing you to customise your home to suit your family and personal style.

What Are The Most Popular Types Of Renovations?

• Landscaping: It’s actually the top reason people take out renovation loans. Whether you’re planting a veggie garden or creating a relaxing outdoor retreat, refreshing your yard makes a massive impact.
• Cosmetic Updates: Sometimes all a home needs is a fresh coat of paint and new flooring. These are some of the easiest ways to get a high return on investment with very little heavy lifting.
• Kitchens and Bathrooms: Modernising these two rooms is the gold standard for boosting your home’s value. A sleek, updated kitchen or bathroom can completely change the way you feel about your space.
• Outdoor Areas: Adding a deck or a patio is like giving yourself an extra room. They are perfect for entertaining guests and help you make the most of your backyard.
• Pool Installation: In warmer spots like Queensland, putting in a pool is a total game-changer. It’s a great lifestyle choice that can also add significant value to your property.
• Structural Renovations: Tearing down walls is a major undertaking and can get expensive quickly. It’s usually a move best reserved for when you really need to fix a clunky layout.
• Extensions: If you’re short on space, adding a second story or extending the ground floor is the way to go. Just keep in mind that these big projects always require council approval before you get started.

What Should I Consider Before Renovating?

If you’re thinking of borrowing to renovate, here are some simple things you can do to ensure that the renovation goes smoothly:

• Look for properties in solid growth markets sold below market value and only require minor repairs.
• Make sure that you get Development Application (DA) approval or check with your local council before undertaking either major or minor construction work.
• If you’re renovating to sell in the near future (property flipping), focus on repairs and makeovers that will actually increase the property value, such as bathrooms and kitchens.
• Speak with your mortgage broker before you purchase your “fixer-upper” or start renovation work on your home – the last thing you want to do is run out of funds halfway through the repairs only to find that a lender is unable to approve your application.

How Can I Apply For A Renovation Mortgage?

Our mortgage brokers are experts in all types of construction loans, including home loans to renovate an existing home.

Please call us on 1300 899 743 or complete our free assessment form and we will go through your options with you.