Renovation loans are often more difficult to set up than standard home loans, unless you have Loanscope in your corner. They are not a standard financial product, and many people who investigate them simply throw up their hands when they see the application and lending criteria.
Loanscope has access to a huge range of renovation home loans for investment properties, first home buyers or as part of the refinancing home loan process. We take care of all of the tedious paperwork so that you can concentrate on the fun stuff, like choosing the paint. Your renovation loan could either pay for upgrades to your existing home, or help you improve a property that has plenty of potential but just needs a bit of love.
Using existing equity or redrawing
You may be able to use your existing equity to top-up your home loan so you can borrow additional funds without taking out a separate loan. If you’ve ever made extra repayments on your home loan, another option is to potentially redraw those funds for your renovations. Not all home loan products have a redraw facility, but Loanscope can find out whether it’s an option for you.
A line of credit may be the solution you’ve been looking for to help finance your renovations, particularly smaller ones. Lines of credit give you the freedom to withdraw funds from your home loan, up to an agreed limit, or to increase your home loan balance and access more funds. Interest is charged on the balance owed, not the total loan amount. Lines of credit can be complex to set up, so it’s best to go through a home loan specialist like Loanscope.
If you’re going to be upgrading your property, it may also be time to upgrade your home loan to factor in the renovation costs. Loanscope compares the home loans of more than 30 different lenders to find the right one for you.
Personal loans and construction loans
If you haven’t built up equity and you don’t have a redraw facility, a personal home loan could be the way to go. Building and construction loans allow you to receive and pay for your loan in increments, which means you don’t pay interest on the costs until the renovations have actually been done. Talk to Loanscope about your options.