Renovation resolution? Here’s why a personal loan might be a good idea

By Kelly Emmerton · · 2 min read
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With 2018 here and new year’s resolutions made around the country, many Aussies probably have plans to finally embark on a long-overdue home renovation project. But before getting started, would-be renovators should check their rainy day fund and consider applying for a personal loan to cover costs, said Mozo property expert, Steve Jovcevski.

According to Jovcevski, having the budget planned out before starting a renovation can mean the difference between a good quality upgrade which adds value to a home, and a half-finished job.

“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.”

To avoid being stuck with a half-gutted bathroom or carpet halfway torn up, Jovcevski urged borrowers to seek out quotes for renovation work and itemise a budget before getting started.

“Whether you’re doing the work yourself or getting a tradie in to do it, plan for each cost involved, and then plan for unexpected expenses that crop up - because they usually will.”

While some Aussies rely on their savings to fund a home renovation, another option is to take out a personal loan, some of which are specifically geared toward paying for home upgrades. According to Jovcevski, taking out a loan could be a smarter option for renovators who aren’t sure their savings will cover the work that needs to be done.

“If you have the savings to cover the work, then that’s great. But not everyone has a spare $20,000 to spend on a new bathroom,” said Jovcevski.

“Plus, 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. In that case, it could be well worth borrowing the money and paying a bit of interest to make sure the job is done right.”

If a fresh new kitchen or brand new deck is on your to-do list for 2018, check out some of the personal loans below to get started.

Personal loans - January 2018

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Last updated 31 July 2025 Important disclosures and comparison rate warning*
  • 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.

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  • Express Personal Loan

    Secured

    interest rate
    comparison rate
    Monthly repayment
    16.95% p.a.to 29.95% p.a.
    32.99% p.a.to 45.5% 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 25-36 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.

    Repayment terms from 2 years to 3 years. Representative example: a 3 year $10,000 loan at 16.95% would cost $14,952.03 including fees.

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    Details
  • Secured Personal Loan

    Exceptional Credit, $5,000-$75,000

    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

    Get a secured personal loan with competitive low rates for borrowers with exceptional credit. A simple fixed interest rate that can be repaid weekly, fortnightly or monthly, over 1 to 7 years (10 years for Green Loans). Managed entirely online, at any time. No monthly account keeping fees, no exit fees and no early repayment fees. Quick and easy, 100% online application. Establishment fees 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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* 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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