Home > Construction and Renovate > Can I use my Equity to Renovate

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Equity is the value of a property minus the owner's outstanding home loan balance. (eg, House is valued at $500k and outstanding home loan balance is $350K. Therefore the equity available in this home is $150k)

To access the equity in your home, you will need to refinance your home loan for the new amount that you wish to borrow. During this refinance of your home loan, you may like to take this opportunity to switch to an interest only repayment option to help with the cost of the renovations.

The easiest way to access the funds is by attaching a Line of Credit facility to your home loan. A line of credit facility allows you to borrow money, in a separate pool, up to a specified limit. The funds will be made available to you in your Line Of Credit account and you access them as required. Effectively, you will draw down the funds as you need them and subsequently only pay interest on the funds you have accessed.

• Where the renovations are Non Structural (ie don't affect the current structure of the house such as painting or changing carpet etc) you will most likely need to provide written quotes for the work to be carried out or for the items to be purchased.
• Where the renovations are Structural (ie may involve the knocking down of walls or moving plumbing) you will most likely need to provide a fixed price building contract.

Equity Home Loans

• Carpe Diem Home Loan
• Equity Silver Home Loan
• Equity Gold Home Loan
• Equity Platinum Home Loan
• 1st Rate Mortgage Combo Home Loan
• Advantage Home Line Home Loan