Renovation Home Loans
A renovation loan is to enable home owners to fund renovations or home improvements to their existing home. Many people are choosing to renovate their home rather than sell and move due to the high cost of selling and buying a new home.
Renovation loans help home owners to stay in their existing home but enjoy an improved lifestyle after the renovations are complete. Also the completed renovations can add value to the existing home increasing its value to lenders.
Common examples of renovations include kitchens, bathrooms, flooring, and laundries, etc.
The Cheapest option is financing the renovation by redrawing on your existing loan if you have a redraw option. However many people get a renovation loan by means of a line of credit that is setup with their lender. This enables them to draw down the money for the renovation when it is needed.
Renovation Loan at a Glance
- Flexible redraw faculty allowing easy access to funds to pay for renovations.
- You can increase the repayments to save on interest>
- Variable interest rate as standard.
- Line of credit so you are only charged interest on what you use.
Renovation Loan Tips
- You can pay down your faster by adding extra lump sums like tax returns or bonuses.
- Be careful to manage your renovation well so you do not waste money and increase your line of credit unnecessarily.
- Make sure your renovation increases the value your home.
- Renovation loans are mostly use to repair or renovate the family home to improve your lifestyle which turn will increase the value of the property.