How Our Renovation Finance Comparison Works
1. Tell Us About Your Renovation
Share details about your renovation project, including scope (kitchen, bathroom, extension, etc.), estimated cost, and your preferred funding method.
2. Get Matched With Renovation Finance Specialists
We connect you with brokers who understand renovation lending and can guide you to the best funding option based on your project size and home equity position.
3. Compare Your Funding Options
Review options including personal loans (for smaller projects), home equity loans, construction loans, or refinancing (for major renovations).
4. Understand True Costs
Your broker explains all costs including interest, fees, and potential tax implications so you can make an informed decision about your renovation funding.
5. Start Your Transformation
Once approved, funds are released quickly so you can begin your renovation project and start adding value to your home.
Renovation Finance Eligibility
While requirements vary by lender and loan type, you’ll generally need:
Property Ownership: You must own the property being renovated
Equity Position: For refinancing, typically need 20%+ equity (10% may be acceptable)
Income: Steady employment or business income to service the loan
Credit History: Good credit history (some lenders consider varied profiles)
Renovation Plans: Clear scope of works and quotes from tradespeople
Budget: Realistic renovation budget with contingency allowance
Don’t meet all criteria? Our broker network includes lenders with flexible requirements. We help homeowners with:
- Lower equity positions
- Smaller renovation projects
- Self-employed income verification
- Varied credit histories
- DIY renovations
- Staged renovation projects
Types of Renovation Finance We Compare
| Finance Type | Best For | Key Features |
|---|---|---|
| Personal Loan | Projects under $50K | No security required, fast approval, fixed term 1-7 years |
| Home Equity Loan | Major renovations | Use home equity, competitive rates, larger amounts available |
| Refinance with Cash Out | Large projects | Restructure entire loan, access equity, potentially lower rate |
| Construction Loan | Major extensions | Progressive drawdowns, interest-only during build, converts to standard loan |
| Line of Credit | Multiple stages | Draw as needed, flexible repayments, pay interest on used amount only |
| Green Renovation Loan | Energy upgrades | Discounted rates, solar/insulation/efficiency upgrades |
Frequently Asked Questions About Renovation Loans
Should I use a personal loan or refinance my mortgage for renovations? Personal loans are faster and simpler for smaller projects (under $50K) and avoid the cost and complexity of refinancing. Refinancing suits major renovations (over $50K) where you can access equity at lower mortgage rates. Your broker will calculate which option offers better value based on your specific situation.
How much can I borrow for home renovations? For personal loans, typically $5,000-$100,000 depending on your income. Through refinancing or home equity loans, you can access up to 80-90% of your property value minus existing debts. The exact amount depends on your equity position, income, and lender criteria.
Can I get renovation finance if I’m doing some of the work myself? Yes, though lenders typically require quotes for professional work and may release funds in stages as work is completed. Some lenders are more flexible with DIY projects than others. Your broker can identify lenders who accommodate owner-builder arrangements.
What renovations add the most value to my home? Kitchen renovations typically return 70-90% of their cost in added value, bathrooms 60-80%, and outdoor living areas 50-70%. However, the specific return varies by location and property type. Your broker can provide guidance on value-adding renovations for your area.
How quickly can I get renovation finance approved? Personal loans for renovations typically approve within 24-48 hours. Refinancing takes 2-4 weeks from application to settlement. Construction loans may take 1-2 weeks depending on building plans and valuations. Your broker can expedite where possible.
Do I need to provide renovation quotes and plans? For smaller personal loans, detailed plans may not be required. For larger amounts through refinancing or construction loans, lenders typically want quotes from licensed tradespeople, detailed plans, and sometimes council approvals. Your broker will guide you on specific requirements.
Related Resources
Explore these related guides to learn more about home renovation financing:
- Home Loans - Standard home loan options
- Refinance - Access equity through refinancing
- Personal Loans - Unsecured loans for smaller projects
- Green Loans - Finance for energy-efficient upgrades
Transform Your Home with Confidence
Whether you’re planning a kitchen makeover, bathroom renovation, or complete home extension, the right financing can turn your dream renovation into reality. Our renovation finance experts help you choose between personal loans for smaller projects or refinancing solutions for major transformations.