With the new year here, you might be considering giving your home a fresh spin with some renovation. Whether it’s adding a pool for the summer heat, or adding a granny flat for gran, renovation can add both monetary and practical value to your home. However, this value also comes at a price and can be quite costly unless you have a large amount of cash lying around. Choosing the right finance will make funding your renovation painless and stress-free.
Home Equity
If you have any home equity available using home equity to pay for your renovation is a great option. There are also a number of ways you can use it as finance for your renovation. If your current home loan as a redraw facility, then you can withdraw any extra payments you have made and use that as finance. Another possibility is extending the length of your existing loan to fund your renovations.
Refinancing Your Home Loan
You can refinance to a new home loan that better fits your new requirements now that you have renovations to finance. This may mean refinancing to a line of credit loan or construction loan. Additionally, refinancing will also give you the opportunity to move to a loan with a better interest rate.
Line of Credit Loan
A line of credit loan is a great option to consider for those wanting to renovate their home. Rather than receiving one big lump sum immediately like standard home loans, you draw money as it is needed. You only pay interest on the funds you end up using which is great for renovation as you never know exactly how much it is going to cost until it is completed.
Each of these is valid options for funding your home renovations whatever your grand plans for your home may be.
If you would like to learn more about financing your home renovations, please get in touch with us today.