Ways to finance your home renovation plans

Ways to finance your home renovation plans

Explore different ways to cover the costs of your next home upgrade.

Kellie George
Kellie George 06 Apr 2022 ・ 2 min read

Looking to give your home a facelift or maximise your living space? A home renovation can be a great way to add value to your property, but it’s important to secure finance before breaking ground.

Here are some of the top options and some important things to consider when deciding which is right for you.

Personal loan

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.

Home loan top-up

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.

Mortgage redraw

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.

Kellie George
Kellie George Author
Kellie George is a financial writer with more than eight years’ experience. As a former small business owner, she understands the challenges that self-employed borrowers face when securing finance. Kellie is currently renovating her own home and has a passion for interiors, design and all things DIY.