Property renovation not only increases the value of your biggest financial asset but is also a smart way to improve your lifestyle without the costs of moving. If you love your neighbourhood, why face the hassle of moving just down the road – especially when state stamp duty fees are so significant?
In many city properties, what you’d spend on stamp duty could fund a new kitchen, bathroom, or even a granny flat! However, you still need to finance your renovation, and one popular approach is using the equity in your home.
✅ Use Your Home Equity: A Home Equity Loan or line of credit loan allows you to access the difference between your lender’s valuation and what you owe.
Want to go beyond the 80% Loan to Value Ratio (LVR)? Your lender may require Lender’s Mortgage Insurance (LMI) – protecting them if you default. Not every loan offers this flexibility, so talk to us about the best options for your specific situation.
Here are 7 tips to help you get started:
1️⃣ Change lenders, stay put: Refinancing can save you money over the long run, and changing lenders is a common move for homeowners.
2️⃣ Cheaper than personal loans: Refinancing is generally more cost-effective than personal loans for funding your renovation.
3️⃣ Construction loans: For major works, such as adding an extra storey, this option lets you pay for the funds you use – not the entire loan amount.
4️⃣ Get your quotes: Always get quotes for your renovation and add 20% to cover potential delays or issues.
5️⃣ Fee negotiation: Sticking with your current lender could mean negotiating away refinancing fees. Changing lenders might involve fees, so let your broker guide you through the best deals.
6️⃣ Prepare to apply: Refinancing applications take time, so have your paperwork ready and organized.
7️⃣ Quick-draw option: You might be able to draw down extra repayments you’ve made on your loan. Check with your broker to see if this is a better alternative to refinancing.
💬 Need advice on refinancing for a renovation? Feel free to call me at 0424 194 688, or click the button below, and I’ll get back to you shortly!
