Here are some of the top options and some important things to consider when deciding which is right for you.
For smaller renovation projects, a personal loan can be ideal.
With no mortgage security required, these types of loans usually have between three to seven-year repayment periods, with the flexibility to pay off early.
And, if you’re eager to get started, personal loans also tend to have a faster approval time with funds being accessible within days.
If you are planning a major renovation, you might be better suited to a home loan top-up.
This type of loan allows you to borrow against the equity you have already built up in your property.
One of the major advantages is that top-up loans accrue interest at the same rate as your home loan – which is usually much lower than a personal loan.
If your current mortgage has a redraw facility, this can be another option worth considering, depending on how much you have available to redraw.
Like a home loan top-up, redrawing on your mortgage provides funds without the need for a separate loan – but instead offers access to money you have already repaid.
Keep in mind that redrawing on your mortgage will increase the balance on your loan, as well as your regular mortgage repayments.
For support to explore your options and find the renovation finance solution that’s right for you, contact a Liberty Adviser today.
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