Renovating in 2021? A personal loan could be what you need
Ready to leave 2020 in the past and have a full on 2021 refresh? Join the crowd!
While we can’t help you with things like getting fit, finding love or kicking lingering lockdown habits, maybe home renovations is on your list of next year’s to-dos.
Depending on whether you are planning a whole house makeover or simply sprucing up the kitchen, the cost of your renovation is essentially up to you and your budget.
If you’ve collected all your 2020 savings and you have enough to cover your planned reno, well done! But if not, you might want to consider your lending options to cover some of the costs: one being a personal loan.
“It’s no secret that renovations can be expensive, so Aussies looking to give their home a facelift need to get savvy when it comes to covering what can be a hefty price tag,” Mozo Director, Kirsty Lamont says.
“With some personal loan rates sitting below 4%, now could be the time to take advantage of low rate lending. But, it’s important to stick to a budget when borrowing for renovations and to make changes that will increase the overall value of the property when it comes time to sell.”
Why use a personal loan for a home renovation
A personal loan is a great way to help cover a renovation, and spread the cost over anywhere from one to ten years.
There are two choices when it comes to deciding on a renovation loan: secured vs. unsecured and fixed vs. variable.
Currently on the Mozo database, the average secured personal loan rate sits at 7.96% while the unsecured rate is a higher 10.26%. A secured loan requires you to put up an asset against the loan (like a car or your home) in return for a lower interest rate. Alternatively, if you opt for an unsecured option you may receive a higher rate but don’t have to risk any of your belongings as security.
And what about fixed vs variable? Well, the choice is yours.
Fixed rates offer more certainty around how much your regular repayment will be as you lock in your rate for the entire loan. The downfall is that sometimes these loans come with hefty exit fees if you pay down your loan early. A variable rate loan however generally comes with more flexible repayment options and no early exit penalty. There is an element of risk though, as your rate can change with the market - meaning it can do down but also can be hiked up at any time.
Want to start comparing loans for your reno? Check out some options on offer right now.
Compare personal loans - last updated February 27, 2021
- Hot DealNo Fee Personal Loan for loans up to $50,000!
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
- Late payment fee
- $35.00
- 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
Unsecured Personal Loan
Fixed, Excellent Credit
interest rate
comparison rate
Monthly repayment
6.39% p.a.to 8.69% p.a.6.39% p.a.to 9.61% p.a.based on $30,000
over 5 yearsTerms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 6.39% would cost $35,126.40 including fees.
CompareCompareUnsecured Personal Loan
With low rates for borrowers with excellent credit, a quick 1 minute rate estimate and simple online application, there’s a lot to love about this loan! You’ll not only benefit from no exit fees, there are also no early repayment fees. To qualify, simply earn above $25,000 and you’ll be on the way to start spending.
- interest rate
- 6.39% p.a.to 8.69% p.a.
- comparison rate
- 6.39% p.a.to 9.61% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $30.00
- Repayment options
- Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $2,001.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 5 Years
- Security required
- Unsecured
- Other benefits
- Up front fee may be higher than shown depending on your application. Application fee is $149 for a three year term.
- Other restrictions
- Displayed interest rate is for customers with an excellent credit history. Application fees may be higher depending on loan amount.
Read our Mozo Review to learn more about the Plenti Unsecured Personal Loan
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
- Late payment fee
- $35.00
- 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
Personal Loan
Fixed, Secured
interest rate
comparison rate
Monthly repayment
5.99% p.a.to 21.99% p.a.7.26% p.a.to 23.15% p.a.based on $30,000
over 5 yearsTerms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.99% would cost $35,820.67 including fees.
CompareComparePersonal Loan
Offering loans from $3,000 at a fixed rate for the life of the loan. You can check your personal loan interest rate before applying in 3 minutes with no impact to your credit score. Repayments can be made weekly, fortnightly or monthly and extra repayments are accepted.
- interest rate
- 5.99% p.a.to 21.99% p.a.
- comparison rate
- 7.26% p.a.to 23.15% p.a.based on $30,000
over 5 years
- Upfront fee
- $250
- Monthly fee
- $13.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $300 in first half of loan, $0 in second half.
- Minimum loan amount
- $3,000.00
- Maximum loan amount
- -
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Various
- Other benefits
- -
- Other restrictions
- To receive minimum rate applicants must be a new Personal Loan customer. Application fee is $140 for loans under $5,000.
Read our Mozo Review to learn more about the Latitude Personal Loan
Unsecured Personal Loan - Excellent Credit
Fixed over 5 years
interest rate
comparison rate
Monthly repayment
6.99% p.a.to 10.49% p.a.6.99% p.a.to 11.92% p.a.based on $30,000
over 5 years5 year term only. Representative example: a 5 year $30,000 loan at 6.99% would cost $35,633.67 including fees.
CompareCompareUnsecured Personal Loan - Excellent Credit
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 10.49% p.a.
- comparison rate
- 6.99% p.a.to 11.92% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 5 Years
- Maximum loan term
- 5 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 - Excellent Credit
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
- Late payment fee
- $35.00
- 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
Tips to setting your renovation budget
When renovating your home, it’s important to avoid going overboard and keep things within a realistic budget. While a swimming pool and tennis court might seem like a good idea at the time, you don’t want them to leave you swimming in deep debt for years on end.
Here are some tips to keep in mind as you renovate in 2021:
- Renovate for profit: The primary thing to remember is that when you renovate your house you want it to increase in value for when you eventually sell it. Whether it’s removing walls to create a more ‘open-living’ space or adding a granny flat, think about what potential buyers might want from the property you have.
- Keep within your budget and set a repayment plan: Have a clear idea of how much you want to spend and stick to it. Similarly, make sure you have money ready to go to start making repayments on your renovation loan, you don’t want to be slapped with late fees or default on your loan and potentially lose assets over it.
- Choose a flexible loan option: Being able to contribute a lump sum to your loan is handy in the case you come into more money, such as a bonus at work. Make sure the loan option you are considering has features like free extra repayments, so you can put additional funds towards your debt whenever you want.
- Don’t fall into the DIY trap: If you aren’t a tradesperson, a DIY home reno is pretty risky. While the cost straight off the bat may be significantly less, the cost of repairs to any mistakes you make could outweigh the amount you’d pay for a professional.
Want more on all things personal loans? Head over to our personal loans comparison page for more!
^See information about the Mozo Experts Choice Personal Loans Awards
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