Home renovation spending surges on back of Homebuilder
Since the federal government’s decision in late November to extend its HomeBuilder scheme, a growing number of Australians have been pouring some serious money into home renovation projects like garden landscaping and room remodelling.
HomeBuilder, which began in June last year, involved handing out $25,000 cash grants (now reduced down to $15,000) to eligible households to cover the cost of home building or renovations. This scheme was introduced to help boost activity in the housing construction industry, and has so far seen a huge takeup in interest. According to Treasury figures, 75,143 households applied as of 31 December, which is almost double of what was initially predicted.
What are home owners spending on?
The popularity of HomeBuilder has had a flow-on effect to Australia’s spending habits. Recent data from Buy Now Pay Later service Zip reveals Aussies spent 33% more on installation and renovation over December, while a range of trade services (carpenters, flooring, plasterers, plumbing, roofing and tiling) also saw their transaction values increase by about 69%.
Furniture and homeware were also top of mind for many households, with money spent on these items soaring by 42% in December.
But the focus hasn’t only been on indoor areas. Many Australians also focused on improving their outdoors space, with spending on landscaping and gardeners up by 58% and 59% respectively.
These figures are based on a sample of more than 1.5 million Zip customers and 300,000 users of budgeting app Pocketbook.
How to fund your next home renovation
With HomeBuilder set to end on 31 March 2021, you may be looking for another way to fund future renovations. Given that it could take many years of saving up before you’re able to afford an entire bathroom makeover or kitchen upgrade out of pocket, a personal loan can be a good alternative to help you spread the cost.
While personal loans haven’t experienced nearly as many rate cuts as home loans, there are still competitive rates up for grabs, especially from smaller mutual banks and credit unions. Right now the lowest personal rate in the Mozo database sits at just 3.65% (4.59% comparison rate*) with the Australian Military Bank - available to consumers installing or purchasing eco-friendly products for their home (as it’s a green loan).
Or if you have equity in your property...
For even larger scale renovations (over $50,000), you may consider tapping into your home equity. Home equity is essentially the portion of your property that belongs to you, so if your house is valued at $700,000 and your mortgage is $450,000, then your equity would be $250,000.
Generally speaking you’ll need to own at least 20% of your property before your lender will agree to release any equity to you. Beware though, this option will increase the size of your home loan, so expect both your mortgage repayments and interest costs to go up.
Check out our guide on for even more ways to fund your home renovation, and weigh up their pros and cons to find the best finance option for you. If you’re interested in seeing what personal loans are available for renovation projects, scroll down for a snapshot.
Compare renovation loans - last updated February 27, 2021
Low Rate Personal Loan (Fixed, Unsecured)
Excellent Credit
interest rate
comparison rate
Monthly repayment
6.75% p.a.to 8.48% p.a.6.96% p.a.to 8.69% p.a.based on $30,000
over 5 yearsTerms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,580.23 including fees.
CompareCompareLow Rate Personal Loan
OurMoneyMarket offer competitive low rates on loans up to $50,000, plus free extra repayments and fee-free redraw facility. Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award^.
- interest rate
- 6.75% p.a.to 8.48% p.a.
- comparison rate
- 6.96% p.a.to 8.69% p.a.based on $30,000
over 5 years
- Upfront fee
- $150
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $2,001.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Rate for Excellent Credit
Read our Mozo Review to learn more about the OurMoneyMarket Low Rate Personal Loan
Unsecured Personal Loan
Excellent Credit, Fixed
interest rate
comparison rate
Monthly repayment
6.99% p.a.to 9.49% p.a.6.99% p.a.to 12.2% p.a.based on $10,000
over 3 yearsTerms from 2 to 3 years. Representative example: a 3 year $10,000 loan at 6.99% would cost $11,114.11 including fees.
CompareCompareUnsecured Personal Loan
Be rewarded for your good credit history with low rates. Plus there are no ongoing fees and you can pay off your loan with no early repayment penalties. Simply apply online and get a quote in minutes.
- interest rate
- 6.99% p.a.to 9.49% p.a.
- comparison rate
- 6.99% p.a.to 12.2% p.a.based on $10,000
over 3 years
- Upfront fee
- $0
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 2 Years
- Maximum loan term
- 3 Years
- Security required
- Unsecured
- Other benefits
- Establishment fee from 0% (with maximum fee of $995) is added to principal loan amount and not paid upfront, amount shown is the minimum of $0.
- Other restrictions
- Interest rate and establishment fee vary according to Equifax credit score. Rates and fees shown are for a Tier 1 (Excellent Credit) graded borrower. Minimum employment income of $30,000 p.a. Application fee added to principal amount of loan.
Read our Mozo Review to learn more about the SocietyOne Unsecured Personal Loan
Personal Loan
interest rate
comparison rate
Monthly repayment
6.75% p.a.7.10% p.a.based on $30,000
over 5 yearsTerms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,680.23 including fees.
CompareComparePersonal Loan
Handypay offer flexible home improvement loans up to $75,000. Handypay is a specialist home improvement plan provider.
- interest rate
- 6.75% p.a.
- comparison rate
- 7.10% p.a.based on $30,000
over 5 years
- Upfront fee
- $250
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- 0
- Minimum loan amount
- $2,001.00
- Maximum loan amount
- $75,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- -
Read our Mozo Review to learn more about the Handypay Personal Loan
No Fee Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment
5.95% p.a.to 17.95% p.a.5.95% p.a.to 17.95% p.a.based on $30,000
over 5 yearsTerms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $34,757.21 including fees.
CompareCompareNo Fee Unsecured Personal Loan
Pay ZERO fees on loans up to $50,000 with NOW Finance. With no establishment fee, ongoing fees or early payout fee. What’s more, get your guaranteed, tailored interest rate in two minutes with no impact on your credit score! Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award^.
- interest rate
- 5.95% p.a.to 17.95% p.a.
- comparison rate
- 5.95% p.a.to 17.95% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly
- Early repayment penalty
- 0
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 2 Years
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Rates based on borrower with excellent credit score. Maximum 3 year term for loan amounts $8,000 or less.
Read our Mozo Review to learn more about the NOW Finance No Fee Unsecured Personal Loan
Personal Loan
Variable, Unsecured
interest rate
comparison rate
Monthly repayment
5.75% p.a.to 25.99% p.a.6.47% p.a.to 29.2% p.a.based on $30,000
over 5 yearsTerms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $35,190.18 including fees.
CompareComparePersonal Loan
Get a personalised rate quote in just 2 minutes, apply in just 7 minutes. Money transferred to your account the next business day. No exit or early repayment fees. Borrow up to $50,000.
- interest rate
- 5.75% p.a.to 25.99% p.a.
- comparison rate
- 6.47% p.a.to 29.2% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $10.00
- Exit fee
- $0.00
- Repayment options
- Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Loan application fee ranges between 0% and 5% for loans with interest rates above 5.75% p.a.
Read our Mozo Review to learn more about the Symple Loans Personal Loan