Personal loans to cover rising home renovation costs

By Ava Crawford and Sophie Wong
Fact Checked
Advertiser disclosure
Man is sitting in a somewhat empty room, waiting for his personal loan funding to process for a home renovation

Aussies are still renovating their homes despite rising costs, as having a comfortable living space takes priority.

In fact, a 2023 survey conducted by leading home renovation and design platform, Houzz, showed 41% of homeowners in 2022 had plans to renovate and were finally able to afford it. 

But while savings were cited as the top reason 79% of respondents were able to fund their home renos, this isn’t the only option. 

If you don’t have the money to front these upgrades entirely, a personal loan could help you get the job done.

Handling the cost of a reno

Did you know that a simple reno could cost you more now than in previous years? Luckily, there are a bunch of low rate personal loan options that could help you cover the cost.

Houzz says that the median annual renovation spend has increased year-on-year. And in recent years since the pandemic, spending hit $35,000 in 2022 compared with $30,000 in 2021, and $21,000 in 2020 - that’s a $14,000 jump in the span of 2 years!

And keep in mind that the planned budget doesn’t always reflect the actual cost, as unexpected events could pop up during a reno. This might include more materials and labour being needed to renovate a space than previously thought, so it’s a good idea to budget for extra in case it’s needed.

Help from reno companies

Unsurprisingly, the surge in renos has led to demand growing for home professionals. Homeowners are hiring help for their renovation projects more than the year prior (94% versus 91%). This is no doubt further driving up the price of construction, as there are typically fewer tradies to go around.

So if you feel your renovation could use a bit of funding assistance, a personal loan might be a way to take some of the pressure off.

Take Omm’s Low Rate Personal Loan, for example. Borrowers may benefit from their low fixed rates which start from 6.57% p.a. (comparison rate 7.19% p.a.*) on loan values up to $75,000. So if you were to borrow $20,000 over the course of 3 years at a rate of 6.57% p.a., your monthly repayments would be $614 with the total interest payable being $2,090 - not a bad offer, when you consider the current average fixed rate for an unsecured personal loan is ^10.58% p.a. in Mozo’s database. Similarly, you’d get a similar result from Harmoney’s Unsecured Personal Loan, with fixed rates starting from 5.76% p.a. (6.55% p.a. comparison rate*).  

Want to start comparing loans for your reno? Find out some of the best personal loans that our experts at Mozo have tracked this month, or compare your top options below!

^Rates are correct as at 6/12/2023 and are calculated using $10,000 loans as an example, with the best credit score data available to Mozo.

Top reno personal loans

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 233 personal loans.
Last updated 11 July 2025 Important disclosures and comparison rate warning*
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.45% p.a.to 26.95% p.a.
    6.45% 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 6.45% would cost $35,176.93 including fees.

    Compare
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    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.74% p.a.to 24.54% p.a.
    7.57% p.a.to 25.32% p.a.based on $30,000
    over 5 years

    Borrow $5,000 to $62,000. Transparent terms and online tools. Fast Online Application. 3, 5 and 7 year loan terms. Zero early repayment and exit fees. Fast online application process.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.74% would cost $36,016.77 including fees.

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    Details
  • Low Rate Personal Loan

    Exceptional Credit, $5,000 - $75,000, or up to $100,000 for eligible purposes

    interest rate
    comparison rate
    Monthly repayment
    6.28% p.a.to 18.99% p.a.
    6.28% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Competitive low rates for borrowers with exceptional credit on 1-7 year loans from $5,000 up to $75,000 (or up to $100K for home improvements or car loans); no monthly account keeping fees, no exit fees and no early repayment fees. 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 6.28% would cost $35,033.88 including fees.

    Compare
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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 24.03% 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.

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    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

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