Renovation home loans for Torquay, the Surf Coast and Geelong
Renovation Home Loans to Help Transform the Home You Love
Whether you are updating a kitchen, adding another bedroom, completing a major extension or rebuilding your home, OCEAN Lending can help you understand your renovation finance options and guide you through the lending process.
Renovate or Move?
Make Your Current Home Work Better for Your Family
You may love your street, local community, nearby schools or proximity to the beach, but your home may no longer provide the space or functionality your family needs.
Renovating may allow you to improve the home without purchasing another property. However, the right decision should consider the renovation cost, available equity, repayments, property value, building risks and the cost of alternative options.
OCEAN Lending can review your current home loan and financial position, assess suitable lending structures and help you understand how the proposed renovation may be funded.
Renovation Projects
What Type of Renovation Are You Planning?
The size, complexity and structural nature of the project can influence the most suitable lending approach and the documents a lender may require.
Kitchen and Bathroom Updates
Finance options for updating kitchens, bathrooms, flooring, appliances, fixtures and other internal improvements.
Cosmetic Renovations
Funding for painting, landscaping, outdoor areas, flooring, lighting and other primarily non-structural improvements.
Extensions and Additional Rooms
Lending assistance for adding bedrooms, living areas, second storeys, home offices or other structural extensions.
Major Structural Renovations
Specialist lending support where extensive structural work, council approval, building permits or staged construction payments may be required.
Knock-Down and Rebuild
Construction lending for demolishing an existing property and building a new home on the same land.
Owner-Builder Projects
Assistance exploring specialist lender options where you intend to coordinate or complete the building work rather than using a registered builder under a standard contract.
Renovation Finance Options
How Could Your Renovation Be Funded?
The appropriate option depends on the project cost, the work being completed, your available funds, property equity and borrowing capacity.
Home Loan Increase or Top-Up
Subject to available equity, borrowing capacity and lender approval, you may be able to increase your existing home loan to fund eligible renovation costs.
Supplementary Loan Account
A separate loan account may allow the renovation funds to have a different loan term, repayment type or structure from your existing home loan.
Refinance and Borrow Additional Funds
Refinancing may allow you to review your current loan while applying for additional renovation funding, subject to the overall costs and benefits.
Construction or Renovation Loan
Larger or structural renovations may require a construction loan that releases funds progressively as defined stages of the work are completed.
Redraw or Offset Savings
Depending on your existing loan and available funds, redraw or money held in an offset account may contribute towards part or all of the renovation.
Using Savings and Borrowed Funds
Some renovations are funded using a combination of personal savings, available equity and a suitably structured loan.
Major Renovations
How a Construction Loan for Renovations Can Work
A construction loan generally releases the approved funds in stages rather than providing the full renovation amount upfront. Payments are usually linked to stages identified in the building contract.
- A fixed-price building contract may be required
- Plans, specifications and permits may be requested
- The lender may obtain an as-if-complete valuation
- Funds are released through progress payments
- Builder invoices are generally required at each stage
- Progress inspections or valuations may be completed
- Interest is generally charged on funds already drawn
- A final inspection may be required before final payment
Preparing Your Application
What Information May Be Required?
Requirements vary between lenders and depend on whether the work is cosmetic, structural, completed by a registered builder or managed as an owner-builder project.
Renovation Quotes
For smaller renovations, lenders may request quotes, invoices or a clear breakdown of the proposed works.
Building Contract
Major renovations may require a signed fixed-price building contract with an agreed progress-payment schedule.
Plans and Specifications
The lender may request approved plans, detailed specifications, engineering information and relevant council or building permits.
Property Valuation
A valuation may consider the current property value and the estimated value after the renovation has been completed.
Builder Information
The lender may require evidence of the builder’s registration, insurance and experience before approving the construction facility.
Your Financial Position
Income, expenses, existing debts, available savings, loan repayments and financial commitments will form part of the credit assessment.
Owner-Builder Renovations
Planning to Manage the Renovation Yourself?
Lenders generally prefer major renovations to be managed by a registered builder under a fixed-price building contract. Owner-builder applications can involve additional risk, documentation and lender restrictions.
Some lenders may consider owner-builder projects, but the assessment may include your experience, licences, project schedule, detailed costings, contingency funds, insurance and the proposed property value.
Our Process
How the Renovation Loan Process Works
We help identify the appropriate lending approach, explain what is required and guide you from initial planning through to settlement and completion.
Initial Conversation
We discuss the renovation you are planning, your estimated budget, current home loan and what you hope to achieve.
Portal Completion
You enter your details and securely upload your financial documents, quotes, plans or building information.
Financial Position Meeting
We review your current position, available equity, repayments, renovation needs and future aspirations.
Research and Comparison
We compare suitable lenders, borrowing structures, construction policies, rates, fees and loan features.
Application and Valuation
We prepare and lodge the application and help coordinate the lender’s valuation and supporting-document requests.
Settlement and Progress Payments
We support you through loan settlement and, where relevant, help explain the process for requesting construction progress payments.
Plan for the Complete Project
Renovation Costs Beyond the Builder’s Quote
A realistic budget should consider both the expected building cost and other expenses or changes that may arise throughout the project.
Plans and Permits
Allow for designers, architects, engineers, surveyors, planning applications and building permits where required.
Contingency Funds
Consider maintaining funds for unexpected building issues, price variations or changes to the original scope.
Temporary Accommodation
Major works may require alternative accommodation, storage or additional transport costs during construction.
Loan Repayments
Understand how repayments may change as renovation funds are drawn and after the construction period finishes.
Useful Resources
Explore Your Renovation Lending Position
These tools can provide useful initial estimates. Results are general and do not represent loan approval.
Loan Repayment Calculator
Estimate how additional renovation borrowing may affect your home loan repayments.
Estimate RepaymentsBorrowing Power Calculator
Obtain a general indication before completing a full lending assessment.
Estimate Borrowing PowerFree Property Report
Request a complimentary report containing useful property and local market information.
Request a ReportOnline Home Loan Comparison
Provide some initial information online so we can begin reviewing your current lending.
Start OnlineFrequently Asked Questions
Renovation Home Loan Questions
Can I use the equity in my home to fund renovations?
Potentially. The amount available depends on your current loan balance, property valuation, borrowing capacity, proposed renovation and the lender’s credit criteria and approval.
Do I need a construction loan for renovations?
Not every renovation requires a construction loan. Smaller or non-structural work may be funded through savings, redraw, a loan increase or refinancing. Larger structural renovations may require progressive construction funding.
What is an as-if-complete valuation?
An as-if-complete valuation estimates the value of the property after the proposed renovation has been completed according to the plans, specifications and building contract provided.
How do construction progress payments work?
Approved funds are generally released to the builder as nominated stages of the renovation are completed. The lender may require an invoice and progress inspection before releasing each payment.
Do I pay interest on the full renovation loan immediately?
With a progressive construction facility, interest is generally calculated on the amount already drawn rather than the full approved construction amount. Repayment arrangements vary between lenders.
Can I act as an owner-builder?
Some lenders may consider owner-builder applications, although lending options can be more limited and additional documents, contingency funds, inspections and experience requirements may apply.
Should I obtain loan approval before starting the renovation?
It is sensible to confirm your available funds and lending position before committing to a building contract, paying large deposits or beginning major works.
What happens if the renovation cost increases?
Loan variations or additional funding may require a further credit assessment and valuation. Avoid agreeing to significant contract variations before confirming how the additional cost will be funded.
Ready to Discuss Your Renovation Plans?
Book a free, no-obligation conversation with OCEAN Lending. We can discuss your renovation, current home loan, available equity and the finance options that may be worth exploring.
The information on this page is general in nature and does not take into account your objectives, financial situation or needs. Renovation and construction projects involve financial, contractual and building risks. Obtain appropriate legal, building and professional advice before entering a building contract. Eligibility, borrowing capacity, lender policies, property valuations, rates, fees, progress-payment requirements and loan features vary between lenders and are subject to change.