From a construction loan for home renovation to a repair bill for a leaky roof, it’s what you need it to be.
A home renovation loan is a type of personal loan that gives you the money you need to make the changes you want to your home. Whether you’re planning your dream upgrade and looking at a construction loan for home renovation, need to build an extension for a growing family or just have a few repairs to make, the choice is yours.
A loan built for you A renovation loan is separate to your mortgage and is not about refinancing or tapping into your equity. It’s stand-alone finance to help you on your journey to home happiness.
But just like any other personal loan, renovation loans come in a few different shapes and sizes. Here are the two main ways to tell them apart.
Secured or unsecured? If you’re willing to put up an asset as security against the loan, you can often access a better rate with a secured loan. Just remember, if you can’t repay the debt, your lender has the right to repossess the asset.
Fixed or variable? For complete control over your money, you can choose to lock in your interest rate by fixing your loan. Budgeting is a breeze because you can work out the total cost of your loan, down to the cent. Rates will usually be a bit higher than with a variable, but you’ll avoid the ups and downs of the market.
How much can I borrow? You can borrow between $2,000 and $50,000 or more across a range of loan terms, from 1 to 7 years. The loan is paid back in regular instalments (weekly, fortnightly or monthly) with interest, which may be fixed or variable across the life of the loan.