Summary:
We simplify the process of financing your home renovation, empowering you to upgrade your space without the stress of confusing loan options or the need to move:
- Choose from top-ups, construction loans, or refinancing with cash-out to fund your renovation.
- From the first time we speak to settlement, you’re guided through each stage with clarity and support.
- Boost property value, increase energy efficiency, and stay in the home and neighbourhood you already love.
Have you ever walked through your home and felt it no longer reflects the life you’re living or the one you’re dreaming of? Maybe your family has grown, your style has evolved, or you’re simply ready for a change. Renovating is more than just updating a space, it’s a chance to breathe new life into your home, to create the kitchen you’ve always wanted, the bathroom you deserve, or that dream pool for endless summer days.
The idea of financing any home transformation can feel overwhelming, a bit like walking a confusing maze filled with loan options and jargon blocking your way.
You’re not alone in feeling this way. Many Australian homeowners envision something more for their existing property, and that’s precisely where a renovation loan comes into play.
At Fox Home Loans, we believe your home should grow and change with you. We’ll guide you through your options so you can find the perfect loan for your project. No confusing jargon, just straightforward guidance on how to make your home renovation dreams come true!
Why Fix Up Your Home? The Positives About Renovations:
Let’s talk about why making renovations can be a great idea. Besides just the look, there are real benefits that make renovations a smart choice, such as:
- Increasing Home Value: When you renovate important areas of your home, like your kitchen or bathroom, it can help increase your home’s value, especially at sale time.
- Saving Money and Energy: During your renovation, consider upgrading to energy-efficient appliances or adding better insulation, both can help you save on power bills.
- No Need to Move: Moving house can be a huge expense and hassle. Why leave the neighbourhood you love when you can reimagine your home right where you are? Renovating gives you the chance to create your dream interior while staying close to the community and lifestyle you already enjoy. It’s a fresh start without the need to start over.
- Making it Your Own: Unlike buying a new home where you might have to compromise on certain features, a renovation lets you design your space exactly how you like it, showing off your own style and meeting your needs.
- Tax Deductions: If you’re renovating an investment property, you could be in for some tax deductions! Big improvements that add value or help you get more rent are often deductible over many years. The best way to understand all the tax rules for your renovation is to visit the Australian Taxation Office (ATO) website.
Understanding Home Loan Renovations: Your Choices
When it comes to paying for your home improvements, there isn’t just one way, you do have a few options, such as:
- Home Loan Top Up (Using the Money You Have): If you’ve been paying off your home loan for a while, you might have built up equity in your home. This is the difference between your home’s current value and what you still owe. A home loan top-up lets you borrow more money using this equity. It’s often simple and usually keeps your renovation loan at the same interest rate as your current home loan.
- Construction Loans: For big changes you’re looking to make, like adding new rooms, or even tearing down and rebuilding parts of your home, a construction loan is designed for those larger jobs. The difference is the money is given out in stages, called progress payments, as your builder finishes different parts of the renovation. This means you only pay interest on the loan as you use it, saving you money. Keep in mind that construction loans usually come with a detailed plan and pricing from the builders.
- Refinance with Cash-Out: If you’re wanting a fresh start with your home loan and need money for renovations, you could switch your entire mortgage to a new lender, or a new plan with your current lender. This is known as refinancing, and it lets you borrow more than you currently owe on your home, with the extra money used for your renovation. This can be a chance to get a better interest rate or more flexible loan features.
Home Loan Renovation Process: Step-by-Step
Getting a home renovation loan might seem tricky, but as your guide, we’ve created a clear and easy seven-step process:
- Make Your Renovation Happen: The first step is to enquire today! This involves filling out our quick online form so we can help you get the process started.
- Talk to an Expert: You’ll have your own dedicated home lending specialist who will go over your assessment, including your income, what you spend, and any other debts. This helps us see how much you can borrow and then suggest the best renovation loan options for you. We make things easy to understand and ensure you feel confident every step of the way by answering all your questions.
- Get Your Pre-Approval: The most important step is securing your pre-approval. This tells you clearly how much you can borrow, providing you a solid budget for your renovation plans. To get your pre-approval, we’ll inform you of what documentation is required, and then we’ll submit all the paperwork for you to your chosen lender.
- Detailed Plans and Prices: With your preapproval ready, you can confidently finish your renovation plans. This means getting clear price quotes from licensed builders or tradespeople. For bigger projects, lenders will need a detailed list of costs and sometimes even drawings, but of course, we’re here to help you understand what information will be needed for your unique situation.
- Formal Application and Home Value Check: Once your plans and prices are ready, we’ll send in your official renovation loan application. For loans that use your home as security (like top-ups or construction loans), the lender will usually get your home valued. Your lender may also follow up and check your home’s value after the renovation.
- Sign Your Papers: With your loan approved, we’ll take the time to explain your documents clearly, so you feel confident about what you’re signing, and understand all fees upfront.
- Start Your Work: The funds borrowed will be provided based on your loan type. For construction loans, this means in stages as projects are completed. For top-ups or refinance options, you usually receive a lump sum payment. Then, it’s time to bring your renovation ideas to life!
Ready to Renovate?
Don’t wait, call Fox Home Loans today, your trusted Mortgage Broker on the Sunshine Coast, and let’s bring your homeownership vision to life.
To learn about what we believe the best things to renovate, check out our blog “4 Home Renovations to Help Add Value to Your Home.”
