Manageable Renovation Loans
But many renovators may already have a mortgage. Making the prospect of taking on additional financing for house renovations a considered decision. The funding must be workable and deliver a positive outcome.
Our brokers are specialists in financing for house renovations, utilising our vast lender base to access the right loans at the lowest interest rates and most workable terms.
Home remodel loans can be complex, with varying lending products available, and an extensive lending market. Connecting with the right lender, the most suitable lending product and achieving the best interest rate, can make the renovation more affordable and further enhance the value of the property. Our experts explain the loan options to suit the specific project, match the customer’s profile with the right lender, and handle the entire process of sourcing and negotiating the funding.
Renovations have potential to significantly increase the value of a property and enhance the lifestyle of the occupants. The right home renovations loan can make carrying out the project accessible and the benefits realised.
Request a QuoteBut many renovators may already have a mortgage. Making the prospect of taking on additional financing for house renovations a considered decision. The funding must be workable and deliver a positive outcome.
Different types of renovations can require different loan products. Primarily the works are differentiated between major structural work such as extensions, upper floors and changes to the exterior and more simple remodelling changes such as paintwork, electricals, new kitchen or bathroom and similar projects. External works may be considered structural renovations.
Major works can require what is known as a Construction Loan while funding for other types of renovations may be secured with a personal loan and for some projects, a mortgage style product. Differences may arise with lending products and conditions in loans to owner-occupiers compared with renovation financing for property investors. Equity already built-up in the property may be used when applying for home remodel loans.
This is when lenders typically require council-approved plans where appropriate; quotes or contracts from builders with a schedule of when progress payments are due; and if the project cost exceeds $1million, a Quantity Surveyor Report may also be requested.
While it may sound complicated, our brokers are experts in this lending field and will explain and assist throughout the process.
Contact us to speak with one of our specialist brokers who know the ins and outs, or quickly request a quote to discover your best options.
To discuss your project and the funding options, connect with us by phone or via our online services.
Our guides offer quick comparisons and simple explainers to help you move through the financing process with confidence.
The type, size and scope of the home improvement project can determine the type of loan product, deposit required, and the interest rate. Your Jade broker will work through the options with you.
Where an acceptable level of equity is held in the property, a mortgage may suit the renovation project. Lenders will be looking at the LVR – loan to value ratio, when determining the deposit required and loan amount approved.
Funding options can include drawdown products to suit the progress payments required by the builders and other trades; personal loans with scheduled monthly repayments; and are typically arranged with a variable interest rate.
Which option best suits your renovation project? Speak with one of our brokers to clarify the most suitable funding option and receive a quote.
House improvement financing may be offered with a personal loan with applicants providing acceptable forms of collateral or security.
In order to be approved, homeowners need to satisfy the eligibility requirements of individual lenders. These criteria include credit profiles and scores, financial situation, deposits, and the loan to value ratio, LVR. This is the ratio of the total value of the project compared with the amount requested in the loan and variations of up to 95% exist in the lending market.
The quotes or contracts from builders and other trades are required as part of the application process. For some projects, lenders will assign their own valuers to provide a valuation of the project.
The down payment required is determined by the lender with up to 50% required for owner-builders and as little of 5% if the homeowner holds Lender Mortgage Insurance.
Applications for pre-approval for home remodel loans require a range of documentation. These include the Council approved plans or the plans that are currently awaiting Council approval and the contracts or quotes from builders with details of any variations. If the value of the project is more than $1m, a Quantity Surveyor Report is also required.
When pre-approval is received, in order to achieve final approval, applicants will need to provide the final approved plans, Builder Risk Insurance and the Public Liability insurance policy details for the builder.
Contracts and quotes should include the details of the progress payments required, where applicable. This enables the drawdown funding schedule to be established. When final approval is received, the funds are made available, and the work can commence.
Depending on the size and scope of the renovation project, valuers may be assigned by the lender to inspect and appraise the project at different stages and on completion.
The terms available for home renovation loans can vary with the applicant’s profile, the loan amount, and the specifics of the project. Your Jade broker will be negotiating with our lenders to secure a repayment schedule over terms that work with individual budgets.
To discuss the mechanics of the renovation loan that would apply to your project, speak with us to confirm details.
House improvement financing can be more complex than many other types of funding but is achievable and can be affordable. Making the prospect of increasing the value of the property highly realistic.
Many homeowners will be wanting an estimate of funding costs prior to planning their project. Using our Home Renovation Loan Calculator can provide those important estimates to allow that planning to proceed.
The calculator is free and easy to use and where the result is in the ballpark, specific quotes can be obtained by contacting us.
As specialists in all areas of home lending, we appreciate that each renovation project can vary with individual requirements – from simple kitchen remodelling through to major structural changes, and the funding should also be individually tailored to suit the homeowner. Our expertise assists in simplifying what can be a complex process and in achieving the most suitable funding product from the most suitable lender.
There are a range of variations across the lending market with approval criteria, LVR and down payments approved, funding products and of course interest rates. With our access to more than 80 lenders, we have the resources to find each homeowner, the lender that best suits their project and profile.
We negotiate on rates, terms and conditions to secure the lowest rates and the most workable terms and repayment schedule. All on your behalf and while keeping you informed of the progress of your application.
Using our services enables homeowners to quickly access funding options and through our industry-level connections with lenders, access to quick approvals. When keen to get work started on what can often be a long-planned renovation, quick approval can be critical to getting the project underway, and completed, in your timeframe.
Ensure your plans are in action asap by contacting us for your financing for house renovations.
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THE COMPARISON RATE IS CALCULATED ON A SECURED LOAN OF $30,000 FIXED FOR A TERM OF 5 YEARS, NEW GOODS, EFFECTIVE 04/10/2024 AND SUBJECT TO CHANGE. WARNING: THE COMPARISON RATE IS TRUE ONLY FOR THE EXAMPLES GIVEN AND MAY NOT INCLUDE ALL FEES AND CHARGES. DIFFERENT TERMS, FEES OR OTHER LOAN AMOUNTS MAY RESULT IN A DIFFERENT COMPARISON RATE.
Funding to cover renovations is available for both houses and apartments, subject to lender approval.
The size, scope and type of works involved in renovations, including whether structural or non-structural, can determine the most appropriate funding product. Funding may be a personal loan or a construction loan.
Interest rates on funding to remodel properties is subject to individual lender guidelines which includes consideration of the applicant’s credit score and financial position.
Drawdown funding is a loan structure which enables the homeowner to access the funds needed to meet builder and trades payments when required. Interest is charged on the amount of funds accessed.
Initial pre-approval of funding is provided based on the initial lender assessment of the application and project. Final approval is subject to receipt of final council approved plans and the required documents from the builder.
Renovation loans can be personal loans with more extensive works funded with a mortgage.
House remodelling loans are typically offered at a variable interest rate.
A down payment is usually required and determines the amount that can be borrowed. The amount that can be borrowed can range up to 95% depending on the application and lender.
Lenders will request plans and contracts from a builder to be included in an application. The scope and nature of the building plans will depend on the type of building works to be undertaken.
No. Funding can be approved for owner-builder projects.
LVR is the loan to value ratio. That is the amount of the loan requested compared with the value or cost of the project to be funded.
Jade Finance simple fast approval application process quickly delivers back all the information you need to help you make the right choices on your finance needs. We pride ourselves on delivering better loan interest rates. Simply you will find our loan packages hard to beat.