The right finance for your renovation is as critical as the right trades people and permits in order to get the job done on time.
Not having access to money to pay for completion of each stage can extend the time to finish the project leading to increased costs and stress. At the same time you do not want to be paying interest on money you are not using or do not need.
Borrowing money to undertake a renovation is essentially increasing your existing home loan. You may or may not have sufficient equity to borrow the full amount required upfront. If not, you should still be able to qualify for finance but it may have to be undertaken in stages.
Another alternative may be to get a personal loan in the short term, which can be consolidated into your home loan at the completion of the renovation.
In either case, it is important to have access to money when it is required and also ensure you are not paying interest on money that is not needed. Having the right loan in place will ensure you have the flexibility required to make scheduled and ad hoc payments. The right loan will also ensure you are not penalised by paying interest on funds you are not using.
There may be other finance considerations relevant to your specific project. Speaking with a fully qualified accountant, tax agent and mortgage professional will ensure you achieve the best possible outcome. Why not take time to discuss your project with us?
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