Do you love where you live? Is it close to your favourite coffee shop or beach? Is the kids school close by and everything just works? BUT your family is growing OR maybe the house is showing its age. Don’t worry – you may just qualify for a renovation home loan! This loan can help you fund the cost of renovating your home… through to adding a couple of rooms or ย just giving the house a spruce up.
How does a renovation home loan work?
Renovations loans can come in many forms and depend on what your future plans are. For example, if you have enough equity and your renovations are ‘non-structural’ (e.g. renovating your kitchen) it could be as easy as obtaining a few quotes and submitting them to the bank to obtain the required funds. Otherwise you might require a ‘full construction loan’ that requires valuations and progressive draw downs. This is why it is essential to chat with us and determine what sort of loan will best suit you and your circumstances.
Renovation loans can be far more cost effective than moving home. You can avoid additional stamp duty and moving costs (not to mention the stress of moving).
Even if you borrowed your maximum when you purchased your home a few years ago, your home might have grown in equity as you have been paying off the loan for some time. We can then stretch the loan term back out to meet servicing/income requirements and borrow the extra amount required.
Owner Builders/Renovations
Generally, banks prefer that constructions and renovations are completed and managed by a registered builder.ย However, some clients have opted to manage the trade and the renovation/construction themselves, this is referred to as ‘owner builders’. Whilst the process in terms of funding for owner builders can be more complex, some banks will consider them.
CONTACT US to start the discussion on your renovation home loan today!
