Renovating your home can be an incredibly stressful time; what with planning the project, taking care of the details and arranging so many different activities to ensure that everything goes to plan.
We get that; in fact, our team at Tundra Mortgage Brokers understand the stresses and pressures more than most.
That’s actually why we’ve decided to put together a selection of different (and effective) ways for you to finance a house renovation.
We’re not expecting you to consider all of them, but if you find one that suits your particular situation, then rest assured that we can help.
Without further ado, let’s take a closer look at the different ways to finance a home renovation.
Take out a personal loan
Personal loans make the world go round and in Australia, these types of loan account for a huge 65% of lending from banks every single year.
If you’re planning a fairly minor renovation with a value of up to $10,000, then we’d certainly recommend considering taking out a personal loan to help with covering the costs.
The great thing about these loan types is that they are widely available and can be secured, unsecured and negotiated with to your heart’s content.
Our team are always on hand to provide further information on how to get the most from these loans, including how to recognise the fairest interest rate, how to take advantage of exclusive deals from banks and how to maximise your repayment schedule to lower your monthly costs.
Use your properties’ equity value
If your property is now worth more than it was when you first bought it (or your mortgage’s value), then the difference between the previous price and the current market value could be considered your equity.
This amount could vary from tens to hundreds of thousands – but regardless of the amount, if your home possesses that value, you could reclaim it in the form of equity.
There are several ways to do this, so we’d definitely encourage you to get in touch with one of our specialists for help and support, as opposed to diving in at the deep end.
There are specific deals that many banks have available as far as equity is concerned and there’s no more effective way to take advantage of them than by hiring an expert to help along the way. We’ll take care of the technicalities, while you sit back and relax.
Apply for a construction loan
Another very effective option when it comes to financing your home renovation is to apply for a construction loan.
Why, you ask? Well, renovations fall into the category of construction and this can be a great way to secure the type of loan that you need to cover your costs.
Construction loans are pretty straight forward – most can be repaid over a period of time (with 5-6 years being the average according to research) and you could borrow as little as a few thousand dollars, or tens of thousands instead.
Being able to receive cash from a bank to help with the construction (or demolition) of your project doesn’t have to be difficult – especially with a professional broker on your side of the fence.
To learn more, get in touch with our friendly team today.