Is a personal loan a good idea for a home reno this summer?

Couple renovating their home in the summer

With the silly season well and truly here, summer BBQs and drinks on the patio could be the perfect reason to finish your backyard renos. 

For example, retiling your entertainment area, adding a pergola or even looking at new decking can add some extra oomph to your home this summer. 

These small but mighty renovations could help spruce up the place for your guests, but also be done in time to enjoy them all summer long. 

The question is, how should you pay for these renos? The extent of your renovation will matter here. 

Cost of a backyard reno for summer

Woman painting in her yard

The cost of a summer reno depends on which areas you want to tackle. However, the general price range of a backyard renovation is $2,000 - $10,000, according to home loan improvement hiring site Hipages.

But this price range can jump if you focus on a more detailed job such as decking. The average cost of a new deck clocks in at $14,360, based on calculations from House Beautiful. Additionally, deck repair can cost up to about $1,800, based on numbers on Airtasker’s site.

Unless you have a beefed up savings account or a generous relative, it could be tough to pay for these projects, either way.

Using a personal loan to elevate your home

Woman painting the outside of her house

A personal loan could be an option to help you cover your renovation costs, with some loans offering a cash boost option for as low as $2,000 for those smaller house touch ups. 

However, if you were looking to improve your summer entertainment area, be it with a deck, tiles or an outdoor kitchen and BBQ, a personal loan could help make a hefty cost more manageable. 

For example, if you borrowed $14,000 from a lender with an average interest rate for December which is roughly 10% p.a., your monthly repayments would be around $456, for a shorter term commitment of 3 years. 

It’s worth noting that personal late interest rates vary, so always be sure to start with some research. For a quick reference, these are the current rate averages in the Mozo database:

  • Average interest rate for unsecured loan: 10.59%
  • Average interest rate for secured loan (requiring a personal asset against the loan): 9.25%

Thinking bigger? Kitchen renos can blow up the budget further

Man renovating kitchen

Going slightly bigger, say remodelling a kitchen, can truly see your budget balloon. And let’s face it, kitchens are usually integral to summer entertainment. But some kitchen renos can cost as much as $20,000, going up to $50,000 even, as per the Sydney Home Centre site.  

This means you’ll need to find a personal loan that provides a much larger maximum amount. Not all loans - nor the costs - are equal! 

If you have your own renovation costs in mind, our personal loan repayments calculator can help you visualise what getting a loan would look like for your budget. 

Basically, you’ll need an estimate for how much your reno will cost you, an idea of how long the project will take and a sense of whether or not you can afford to make repayments over several years, in most cases.

You can also get started on your personal loan renovation journey by checking out our editor’s picks for best personal loans - or compare personal loan providers down below.

Compare personal loans

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 247 personal loans.
Last updated 22 July 2024 Important disclosures and comparison rate warning*
  • Mozo Expert Choice Badge
    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.75% p.a.to 26.95% p.a.
    6.75% p.a.to 26.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023 & 2024^'

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.

    Compare
    Details
  • Mozo Expert Choice Badge
    Low Rate Personal Loan

    Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 8.48% p.a.
    7.19% p.a.to 8.84% p.a.based on $30,000
    over 5 years

    Competitive low rates for borrowers with excellent credit on 1-7 year loans from $2,001 up to $75,000, plus free extra repayments. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

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    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.76% p.a.to 24.03% p.a.
    6.55% p.a.to 24.98% p.a.based on $30,000
    over 5 years

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.76% would cost $35,173.52 including fees.

    Compare
    Details
  • Holiday Loan

    Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 8.48% p.a.
    7.19% p.a.to 8.84% p.a.based on $30,000
    over 5 years

    Travel the globe with competitive low rates for borrowers with excellent credit on 1-7 year loans from $2,001 up to $75,000, plus free extra repayments. Winner of Mozo's Experts Choice award for 2024 ^. Min. income of 25k after tax, to apply.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

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    Details
  • Express Personal Loan

    Secured

    interest rate
    comparison rate
    Monthly repayment
    14.95% p.a.to 27.95% p.a.
    29.30% p.a.to 42.8% p.a.based on $10,000
    over 3 years

    Access fast finance on loans from $3,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 25-48 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.

    Repayment terms from 2 years to 4 years. Representative example: a 3 year $10,000 loan at 14.95% would cost $14,324.71 including fees.

    Compare
    Details

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.