Refinancing for Renovations

May 04, 2015
Nathan Sims

Refinancing – a clever way to fund renovations

A well-planned renovation does more than improve your lifestyle. It can boost your home’s value, so when it comes to funding your renovation project it’s worth thinking about refinancing your home loan.  Stamp duty costs to move from one house to another can be a deterrent to relocating, that’s where renovating your existing home can be a very attractive proposition.

New statistics from realestate.com.au indicate that about 1 in 3 people are looking to buy properties with the intention to renovate. The data also alluded to the fact that 43% of people browse the buy section for inspiration for renovations on their current properties. When it comes to the renovations, most people are looking to upgrade their kitchen or bathroom first, followed by extending the living areas for more space.

How does refinancing help?

The majority of renovations can cost well over $10,000, which for many may mean the funds are not easily accessible as most of the funds are tied up in the home loan as equity.  This is where refinancing your home loan can help. If you’ve been in your home for a few years, the chances are it has grown in value. Combined with the fact that you have been reducing the debt over time, you may have sufficient equity to cover the renovations. This equity can be accessed through refinancing and the added bonus is, we may even be able to offer a lower rate or better home loan to suit your needs.

The video below from The West Real Estate program clearly explains what equity is and how it can be used.

Depending on your rate and terms of the refinance, you might find that your monthly repayments may not change, even with the extra funds included for the renovations. This makes refinancing for renovations a very smart option and one that is quite easy to achieve.

Call our home loan specialists

If you would like to have a look at your option for refinancing and obtaining some extra cash for renovations, please give Steve a call today on 0433 124 081 or email at steve.sims@mortgagechoice.com.au. You can then concentrate on the exciting part of planning your new project, so that your home can reach its full potential.

 

Posted in: Refinancing

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