renovation loanS

What can I use a Renovation Loan for?

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A renovation loan can be helpful if you need money to cover the full cost of your home improvement projects. A person may choose to use a personal loan to fund their home renovation for the purpose of adding value to their property, to expand their home, to increase a home’s energy efficiency, or to simply make their home a more comfortable place to live.

Home improvement is a popular motivation for taking out a personal loan, particularly among the older generations. 20% of Baby Boomers have used a personal loan to fund their home renovation, followed by 17.2% of Gen X and 12.6% of Millennials. In the case of Australia’s Baby Boomer generation, a renovation loan can help fund for a more comfortable retirement within their existing homes.

A renovation loan can be used for:

  • Kitchen renovations – Whether it’s replacing the kitchen sink, adding more cabinets, remodelling, or installing splashbacks. A renovation loan can be used for all kinds of kitchen renovations and remodels, including cosmetic renovations such as installing new appliances and furniture. 
  • Bathroom renovations – A renovation loan can help to update an old bathroom and be used to install a new shower or bath as well as to upgrade taps and plumbing. Outdated tiles, paint and waterproofing can be replaced and updated for a more modern and fresher look. You can also add a second toilet or bathroom. 
  • Bedroom renovations – Bedroom renovations can include new paint and cabinetry, new beds, and curtains as well as updated flooring such as carpet, floorboards or tiling. 
  • Living area renovations – If you need to accommodate an expanding family, a renovation loan can be used to increase the size of your living area and make it a more comfortable place to gather. 
  • Backyard renovations – Renovation loans can also be used to fund outdoor improvements. These may include putting in a new garden, pavers, installing a veranda, pool, or putting up a retaining wall.

At Plenti, we offer fast, fair, flexible loans. You can borrow between $2,001 to $50,000 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.

Getting a construction loan for a renovation

Construction loans (also known as a “renovation loan”) not only allow borrowers to fund for cosmetic renovations, but they can also be used to fund any value-adding renovations. These types of renovations include adding an addition to your house which can boost your property’s overall value and comfort.

Such additions include installing a swimming pool – which can be a wise investment if your property resides in an area prone to warmer weather. You may also want to use a construction loan to add a garage or secured parking. Other additions that a construction loan can cover include green or energy-efficient additions to improve your home’s sustainability such as solar panels and insulation. 

Compare unsecured personal loans up to $50,000*

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.

How do I become eligible for a renovation loan?

A renovation loan is a type of personal loan, meaning that eligibility requirements are the same as all types of Plenti personal loans. There may be a few additional requirements needed from you during the application process, however, applying for a renovation loan is simple and stress-free.

The best way to assess your eligibility for a renovation loan is by completing our 1-minute RateEstimate. In addition, ensure that you also meet the following:

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

Plenti has the lowest monthly repayments compared to typical home improvement loans, and rewards good credit history. If you meet the above criteria, apply now and get started on those home projects.

Is a home renovation loan tax deductible?

You can claim the interest charged on the loan you use to finance renovations if your property is a rental property or if you have plans of renting your property out. You may be able to claim a full tax deduction for the cost of repairs and maintenance in the year that you incur them if your property is a rental, or if the expenses directly relate to wear and tear or other damage incurred through renting out the property. Examples of repairs or maintenance improvements that can be claimed immediately include:

  • Replacing broken windows
  • Replacing guttering or downpipes
  • Replacing a part of a fence due to damage (e.g. a fallen tree)
  • Repairing electrical appliances
  • Repainting interior walls
  • Cleaning a swimming pool or oiling a deck
  • Maintaining plumbing

You can’t claim a tax deduction for the total cost of improvements to a rental property in the year you incur them. An improvement is anything that makes your property better, including an addition that provides something new or furthers the value of the property. If you claim your renovation costs when it includes both repairs/maintenance and home improvements, you can only claim an income tax deduction for the cost of your repairs/maintenance if you can separate the cost of the repairs from the cost of the improvements.

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