Making renovations on your home can be both exciting and exhausting. Whether you are adding a spare room or sharpening the look of your kitchen it is rewarding to see the transformation. That is why we have made a list of ways to fund your renovations so you can focus more on the fun stuff.
Refinancing Your Existing Home Loan
In order to acquire the extra funds, you need to be able to renovate your home you could refinance your existing home loan and unlock your equity. If there are not fees associated with refinancing, you could save yourself thousands of dollars by finding a loan with a lower interest rate.
Applying for a Personal Loan
For smaller renovations, a personal loan is a worthwhile choice given how quickly the money is available to be used. Once you are approved, you get a simple lump sum deposited into your account and you can begin your renovations. It is important to keep in mind that interest rates for personal loans can be higher than a traditional home loan and you will need to know the cost of your renovations before you apply.
Applying for a Construction Loan
Another choice to consider is a construction loan, which takes into account the final value of your home after renovation. A construction loan is usually paid in 5 increments, meaning you will receive payment after work has been completed for each stage of the build. This reduces the risk for both you and the lender and ensures you don’t get in large amounts of debt unnecessarily.
All these options are viable ways of funding your renovation and each come with their own advantages.
If you are looking to renovate your home or your investment property maybe now is the time to look at your finances. Let’s chat about what is right for you!