Home renovations are always highly spoken about, but always stressful to think about. Finding the best way to fund a home renovation, is crucial in completing a successful home renovation project, headache-free. There are a few options in financing home renovations – being that you either pay out of your pocket (with your savings), use your built-up equity from your existing property, or secure additional funds through a lender.

You may want to use your own savings or existing funds kept in your loan offset or redraw facilities, so that you don’t need to incur any additional debt, which is a more straightforward option. If you do plan to use funds in your offset account, or redraw facility; it is best to understand the effect that this can have on your current loan in the long term, because your interest expenses will increase, and the time taken in repaying the loan.

You might also consider borrowing additional capital through your existing property’s equity, by increasing your loan size and then placing all of these funds into your offset account. Therefore, this allows you to save on additional interest, until you incur your expenses.

Refinancing your loan is also similar commitment in replacing your existing home loan, so make sure you consult a professional in respect to the financial implications of doing so. Our Renovation Loans Point Cook team have excellent experience in helping with renovation projects, and therefore you can be confident that we can provide the best strategy based on your financial health and outlook.