renovation loanS

What is a Home Renovation Loan?

A home renovation loan is a type of personal loan, providing you with the money you need for renovations, to build an extension or any other changes to turn your house into your dream home.

Home Improvement is a popular motivation for people obtaining a personal loan, most commonly in Baby Boomers. 20% of boomers stated they took out a personal loan for home improvement. Compared to 17.2% of Gen X and 12.6% of Millennials, this could be due to the fact that the Baby Boomer generation is shying away from downsizing in favour of aging in their existing home.

At Plenti, we offer fast, fair, flexible loans. You can borrow between $2,001 to $45,000 over 6 months to 5 years. There are no monthly or early repayment fees. This gives you the freedom to save more by making extra repayments on your loan.

Home loan and renovation loan, what’s the difference?

A renovation loan is a great choice for those who do not have enough equity in their property to borrow. Renovation loans or construction loans are based on the estimated post-renovation value of your home. This allows you to borrow whatever amount you need to pay for your home improvements progressively, as your renovation invoices arrive. This option saves you money since compared to refinancing your home loan, a renovation loan can be paid off completely within a shorter amount of time.

A home loan, on the other hand, is a loan advanced to you by a financial institution in return for security over the property you are using the loan to buy. Home loans will typically be on a 25 to a 30-year term, with regular fortnightly or monthly repayments. For those with enough equity built up in their home, refinancing their home loan can be one way of borrowing money to fund a renovation.  

Plenti has the lowest monthly repayments for renovation loans, meaning you can finance that home renovation sooner.

Compare unsecured personal loans up to $45,000*

Brand
Interest Rate (p.a.)
Comparison Rate (p.a.)
Upfront Fees
Monthly Fees
Repayments
NAB
NAB Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 9.99% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

$150

Monthly Fees

$10

Repayments

$0 per month
ANZ
ANZ Personal Loan (Variable Rate)

Interest Rate (p.a.)

from 15.99% (variable)

Comparison Rate (p.a.)

Info

Upfront Fees

$150

Monthly Fees

$10

Repayments

$0 per month
Community First CU
Community First Personal Loan (Variable Rate)

Interest Rate (p.a.)

from 11.99% (variable)

Comparison Rate (p.a.)

Info

Upfront Fees

$195

Monthly Fees

$0

Repayments

$0 per month
Community First CU
Community First Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 11.99% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

$195

Monthly Fees

$0

Repayments

$0 per month
Gateway Bank
Gateway Bank Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 10.59% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

$149

Monthly Fees

$0

Repayments

$0 per month
Gateway Bank
Gateway Bank Personal Loan (Variable Rate)

Interest Rate (p.a.)

from 9.84% (variable)

Comparison Rate (p.a.)

Info

Upfront Fees

$149

Monthly Fees

$0

Repayments

$0 per month
Newcastle Permanent
Newcastle Permanent Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 8.99% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

$250

Monthly Fees

$0

Repayments

$0 per month
Greater Bank
Greater Bank Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 8.95% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

$275

Monthly Fees

$0

Repayments

$0 per month
Beyond Bank
Beyond Bank Personal Loan (Variable Rate)

Interest Rate (p.a.)

from 12.99% (variable)

Comparison Rate (p.a.)

Info

Upfront Fees

$175

Monthly Fees

$5

Repayments

$0 per month
Bank Australia
Bank Australia Personal Loan (Variable Rate)

Interest Rate (p.a.)

from 11.89% (variable)

Comparison Rate (p.a.)

Info

Upfront Fees

$150

Monthly Fees

$0

Repayments

$0 per month
People's Choice CU
People's Choice Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 8.99% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

$250

Monthly Fees

$0

Repayments

$0 per month
Nimble
Nimble Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 8.99% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

from $195

Monthly Fees

$0

Repayments

$0 per month
OurMoneyMarket
OurMoneyMarket Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 7.99% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

from $1.5

Monthly Fees

$0

Repayments

$0 per month
OurMoneyMarket
OurMoneyMarket Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 7.99% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

from $1.5

Monthly Fees

$0

Repayments

$0 per month
BOQ
BOQ Personal Loan

Interest Rate (p.a.)

from 10.99% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

$150

Monthly Fees

$8

Repayments

$0 per month
ME Bank
ME Bank Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 10.98% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

$250

Monthly Fees

$0

Repayments

$0 per month
HSBC
HSBC Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 8.5% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

$150

Monthly Fees

$5

Repayments

$0 per month
Citibank
Citibank Personal Loan (Variable Rate)

Interest Rate (p.a.)

from 9.99% (variable)

Comparison Rate (p.a.)

Info

Upfront Fees

$0

Monthly Fees

$0

Repayments

$0 per month
CUA
CUA Personal Loan

Interest Rate (p.a.)

from 9.89% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

$175

Monthly Fees

$0

Repayments

$0 per month
Bendigo Bank
Bendigo Bank Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 12.79% (variable)

Comparison Rate (p.a.)

Info

Upfront Fees

$150

Monthly Fees

$5

Repayments

$0 per month
Bankwest
Bankwest Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 10.99% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

$195

Monthly Fees

$8

Repayments

$0 per month
Suncorp
Suncorp Personal Loan (Variable Rate)

Interest Rate (p.a.)

from 9.49% (variable)

Comparison Rate (p.a.)

Info

Upfront Fees

$175

Monthly Fees

$5

Repayments

$0 per month
Suncorp
Suncorp Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 9.49% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

$175

Monthly Fees

$5

Repayments

$0 per month
Coles
Coles Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 12.99% (variable)

Comparison Rate (p.a.)

Info

Upfront Fees

$199

Monthly Fees

$10

Repayments

$0 per month
Latitude
Latitude Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 7.99% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

$250

Monthly Fees

$13

Repayments

$0 per month
St George
St George Personal Loan (Variable Rate)

Interest Rate (p.a.)

from 12.99% (variable)

Comparison Rate (p.a.)

Info

Upfront Fees

from $195

Monthly Fees

$12

Repayments

$0 per month
St George
St George Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 9.99% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

from $195

Monthly Fees

$12

Repayments

$0 per month
SocietyOne
SocietyOne Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 7.99% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

from $0

Monthly Fees

$0

Repayments

$0 per month
SocietyOne
SocietyOne Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 6.99% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

from $0

Monthly Fees

$0

Repayments

$0 per month
Now Finance
Now Finance Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 6.95% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

from $495

Monthly Fees

$13

Repayments

$0 per month
ING
ING Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 8.99% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

from $100

Monthly Fees

$0

Repayments

$0 per month
ANZ
ANZ Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 12.45% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

from $150

Monthly Fees

$10

Repayments

$0 per month
NAB
NAB Personal Loan (Variable Rate)

Interest Rate (p.a.)

from 9.99% (variable)

Comparison Rate (p.a.)

Info

Upfront Fees

$150

Monthly Fees

$10

Repayments

$0 per month
Westpac
Westpac Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 11.99% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

from $250

Monthly Fees

$12

Repayments

$0 per month
Commbank
Commbank Personal Loan (Variable Rate)

Interest Rate (p.a.)

from 11.50% (variable)

Comparison Rate (p.a.)

Info

Upfront Fees

from $150

Monthly Fees

$10

Repayments

$0 per month
Commbank
Commbank Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 11.50% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

from $150

Monthly Fees

$10

Repayments

$0 per month
Plenti
Plenti Personal Loan (Fixed Rate)

Interest Rate (p.a.)

from 6.49% (fixed)

Comparison Rate (p.a.)

Info

Upfront Fees

from $149

Monthly Fees

$0

Repayments

$0 per month
Plenti
Plenti Personal Loan (Variable Rate)

Interest Rate (p.a.)

from 5.79% (variable)

Comparison Rate (p.a.)

Info

Upfront Fees

from $149

Monthly Fees

$0

Repayments

$0 per month

Comparison rates for loans under 3 years are based on an unsecured personal loan of $10,000 over 36 months. Comparison rates for loans 4 years and above are based on an unsecured personal loan of $30,000 over 60 months.

Warning: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

*Products shown do not represent all rates available from all lenders, or all rates available from the lenders presented. Plenti interest rate is based on a borrower with an excellent credit history using rates and fees applicable as at 3pm, 14 October 2020. All other interest rates and fees displayed are as advertised by the respective lender on their website as at 27 September 2020 and may include short-term promotional offers. Comparison rates are calculated by Plenti. The actual product, rate, fees and charges you might be eligible for may be different based on your loan term, loan amount and credit characteristics.

Other fees and charges not shown here may apply. Rates shown are subject to change without notice. Information on this page does not constitute an offer of credit. Plenti Australia RE Limited does not provide credit assistance in relation to all products compared on this page. The displayed order of products shows the lowest monthly repayment as default or is based on your sorting options and does not represent a suggestion that a particular credit product is appropriate for you.

Can I get a home renovation loan?

The best way to see if you are eligible for a home renovation loan with PLenti is by completing our 1-minute RateEstimate. The RateEstimate tool provides an initial assessment of your eligibility to apply for your loan type and will take in factors including your proposed loan term, amount, purpose, and credit history.

Since a home renovation loan is a personal loan, the application process is exactly the same as when you apply for any other type of secured or unsecured personal loan.

Generally speaking, before you can apply you need to meet the following requirements:

  • You are aged 21 years and over
  • You are an Australian citizen or permanent resident
  • You have a good credit history

If you meet the above requirements and complete the RateEstimate, you will be notified whether you’re eligible for a renovation loan or not.

At Plenti, we offer both secured and unsecured personal loans. You can choose whether you wish to secure your loan as part of the application process.

Can you get a home loan including renovation costs?

As a general rule, home loans don’t include renovation costs. To fund a renovation with a mortgage, you have the option of borrowing against the current value of your home and talking to your bank about increasing your loan size and placing the renovation funds into a 100% offset account.

You can also apply for a line of credit, which allows you to access funds as you need them while charging interest on the balance owing on your account. Either option allows homeowners to fund important renovations, however, there is the potential that the cost of your renovations may actually be higher than the funds you have available, increasing your risk of falling into debt. You are also susceptible to attracting higher interest for the entire term of your home loan.

Is there an option for first time home buyer renovation loans?

First home buyers can access the same competitive loan rates, so long as they meet the basic personal loan eligibility requirements.

If you’re a first home buyer and want to finance your home improvement project through a renovation loan, you will first need to complete a RateEstimate. This will indicate your loan options and borrowing power and will give you a personalised interest rate for different loan terms. From there, you can choose your preferred loan option and start your online application.

During your online application, you will be asked to verify your personal details including your age, proof of income, expenses, and liabilities. For personal loans such as home renovation loans, you will also be required to share further information and documents about the renovations you are wanting to undertake along with the estimates of those renovation costs.

Sebastian Paulin

Written By Sebastian Paulin

Sebastian has worked with Australia’s leading banks and fintechs for over 12 years building better consumer experiences.

FinTech & Consumer Finance Author