27 Apr 2022

Renovation Home Loans: What Is the Best Option?

Mortgage House Renovation Home Loan

Most homes require renovation once every 15 to 20 years. Sometimes they only require revamping one room. Other times homeowners simply feel ready to change the interior design of a space. Thus, they renovate to update the look. Expanding families often need more space. They renovate the layout to create it. The average cost to complete renovations in Australia ranges between $50,000 to $75,000. Another way to look at the costs is to calculate them based on square metres. 

Some homeowners do not have that sum set aside for renovations. Therefore, they apply for financing. One option homeowners can consider is applying for a Mortgage House renovation home loan.

We issue four types:

  • Variable-rate
  • Fixed-rate
  • Construction
  • Split

Examples of Mortgage House renovation loans include:

  • Advantage 1 Year Fixed Special
  • Advantage 3 Years Fixed
  • Advantage 4 Years Fixed Investment

Therefore, we also lend to investors who need to renovate a property before they sell it or fill it with tenants.

The process of applying for renovation loans is similar to applying for construction loans. Homeowners will submit their estimated budget. Lenders prefer to finance an 80% loan-to-value ratio. Therefore, homeowners should have 20% of the total costs saved. Those who work with professional builders can obtain up to 90% of the total estimated renovation costs. 

The best loan option is always the one that the applicant can afford to repay. Sometimes a refinance home loan can help you find the funds. Our Mortgage House loan specialists can provide more insight.

Mortgage House Renovation Home Loan Conclusion

When your home requires a revamp, you can apply for our Mortgage House renovation home loan options. Contact our loan specialists to start the process.

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