Contracts & Costs

Home Renovation Loans in Australia: Complete Homeowner Guide

Understand every major way to finance a home renovation in Australia, from redraw and equity loans to refinancing, personal loans and staged construction finance.

TL;DR Australians can fund renovations through savings, redraw, an offset account, a home-loan top-up, refinancing, a separate equity loan, an unsecured personal loan or a construction loan. The best option depends on the project cost, available equity, borrowing capacity, structural complexity and how the builder must be paid. Small cosmetic projects may suit cash, redraw or a personal loan. Larger renovations, extensions and second-storey additions commonly require a construction loan with staged progress payments. Before borrowing, establish the complete project cost, retain a contingency and confirm that the loan structure matches the building contract. What is a home renovation loan? A home renovation loan is not one standard financial product. It is a general description for several …