The ‘dream home’ is different for everyone. For some it includes a walk-in wardrobe, a kitchen island or a bathroom upgrade.
And it’s not unusual for everyday Aussies to enlist the help of a personal loan to help fund their dream home, which is why this morning’s announcement from Community First Credit Union of a new unsecured Home Improvement Loan with an interest rate at 6.12% and a maximum loan term of 5 years could be the answer for many Aussies renovators.
Community First Credit Union also announced an additional Home Improvement Loan with a 10 year loan term and an interest rate of 8.10%.
To find out what the Home Improvement Loan would look like for the average borrower, we took our personal loan repayments calculator for a spin.
Let’s say a borrower is looking to borrow $30,000 to be paid off over the maximum 5 year term with the starting interest rate of 6.12%. According to the Mozo personal loan repayments calculator, the borrower will pay $4,900 in interest and a monthly repayment of $582.
If you are looking to take out a personal loan to help your home looks its best Mozo Property Expert, Steve Jovcevski, had some advice for prospective borrowers.
“It’s always a good idea to plan your budget thoroughly before you start any major renovation, because if you run out of funds halfway through the job, it can be tricky to convince a bank to lend you more money,” Jovcevski said.
“If you’ve run over budget, that might be a sign that the work is getting more expensive than you were prepared for, which can make a lender nervous about your ability to repay a loan.”
Jovcevski also warned borrowers of the dangers of miscalculating a budget before renovations begin to prevent an incomplete or unsatisfactory result.
“It’s important not to stretch your budget too thin, because you’ll wind up cutting corners, and ultimately you won’t be happy with the result and the reno won’t add value to your home like you want it to,” he said.
If you’re ready take your home from drab to fab, our personal loan comparison tool can help you find your best personal loan deal.