Renovation loans
Bored of your same old home environment? Craving a little pizzazz? You’re not alone!
You don’t have to sell up and buy a new home to have that new home feeling, you can turn your very own abode into the home of your dreams instead! That's right, we're talking renovations.
No matter how big or small, the truth is, renovating can require a bit of a cash injection, and that's where renovation loans take centre stage. Often these loans come in the form of personal loans, however there are other options out there to help you fund your home's revamp.
Check out some hot loan options below.
Personal Loan Comparison Table - last updated January 23, 2021
- Hot DealNo Fee Personal Loan for loans up to $40,000!
Unsecured Personal Loan
Fixed, $5,000 - $40,000
interest rate
comparison rate
Monthly repayment
6.95% p.a.to 17.95% p.a.6.95% 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 6.95% would cost $35,599.71 including fees.
Pay ZERO fees on loans up to $40,000 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^.
CompareCompareUnsecured Personal Loan
Pay ZERO fees on loans up to $40,000 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
- 6.95% p.a.to 17.95% p.a.
- comparison rate
- 6.95% 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
- $40,000.00
- 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 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.
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^.
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
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.
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.
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
Unsecured Personal Loan - Excellent Credit
Fixed over 5 years
interest rate
comparison rate
Monthly repayment
7.99% p.a.to 10.49% p.a.7.99% 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 7.99% would cost $36,488.90 including fees.
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.
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
- 7.99% p.a.to 10.49% p.a.
- comparison rate
- 7.99% 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
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.
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.
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
Is renovating cheaper than buying a new place?
You can make some serious savings by choosing to renovate over moving. Everything from real estate agent fees, relocation costs, stamp duty, the list goes on! However saying that you always save money by renovating isn't always the case. So sit down and crunch the numbers to weigh up if the cost of giving your house a facelift is less than buying something new.
A solid benefit of renovating and staying in your current home though is that you will potentially add value to your property. This means not only is it nicer to live in once the renos are done but also adds worth in the long run. Bonus!
I want to renovate - is there a loan for that?
Absolutely. Financial institutions know all too well the value of renovating your property. And if your property is already security on your mortgage, they’re probably more than happy to accept an extra renovation loan.
Suitable loans for renos come in all shapes and sizes. They may be called: home loan refinance, top up or line of credit for more substantial amounts. For smaller renovations, you may think about a small personal loan or even a credit card. It all depends on how much you need and what you want to create.
Renovation loan types
Each lender may identify loans suitable for renovations with a different name, so don't be afraid ask your lender to see what they’ve got on offer. Here's some options that may be available to you:
- Home loan refinance: Now’s a good time to review your home loan to see if it’s still working for you. Sometimes called a mortgage ‘health-check’, you can assess if your loan is still satisfying your needs. Happy with the interest rate? Remember, there’s always room for negotiation. And if your lender has become too complacent, consider moving your business elsewhere. See here for information on lenders that offer refinance home loans.
- Home loan top up: This is a great way of getting a whole wad of cash on the side without having to go through all the paperwork. Essentially, ‘topping-up’ on your existing mortgage, you’ll not only save time but may even be able to take advantage of a lower interest rate for the amount you need to renovate. Ask your lender and find out today.
- Line of credit: Access to your own money? Fantastic! Well it’s access to the equity in your home. You’re probably already aware, that as you pay off your mortgage, you build on what’s called ‘equity’ in your home. That’s the accumulated amount that is deducted form the bulk of what's owed. The great thing about it, you only have to pay interest on the amount that you use, not the whole amount. So you can budget around your renovation and complete your project in stages if you wish.
- Personal loan: If you don’t want to use the equity in your home, you may want to consider another means of borrowing money for your renovations such as a personal loan. With a personal loan you’ll have flexibility to cap the amount and set a strict deadline for paying back the renovation. Generally, a personal loan is a good option for renovation projects between $15,000 - $30,000.
- Credit card: Now we’re not discounting the extent of your renovations, but if all you want to do is change the kitchen bench tops and cupboards or build a new deck, then you may not have to fuss with a large loan to deal with your renovations. You may want to consider a low interest credit card or a card with a 0% purchase rate offer. Some credit card rates are comparable with personal loans and if you can get a 0% deal, you won’t need to pay any interest. Just remember, make sure you pay the balance off in full at the end of the project and that it is during the interest free period.
What do I look for in a renovation loan?
- fixed versus variable interest rate: if you want to ensure that during the time you are paying back your loan that your repayments stay the same, then a fixed rate deal will be best. Variable interest rates are generally lower but you have the risk that your repayments could go up during the renovation loan term.
- comparison rate: be sure to use the comparison rate to compare loans as this takes into account fees and interest rates to help you understand the true cost of a loan
- flexible features: Can you make free extra repayments? Or does your loan offer a redraw facility? Generally variable rate loans have more flexibility and while you can generally make extra repayments with a fixed loan, there are usually limits on how much over the renovation loan period.
The Reno Repayment Plan
This is where you can think about your short and long-term goals, plan ahead and try and unravel the best possible way to repay your renovation debt.
To work out how much your repayments will be try Mozo’s personal loan repayments calculator. It will tell you how much your added monthly repayments will be and how much interest you are likely to pay over the duration of the renovation loan. There are some things you may want to consider as part of your repayment plan to help you to save on interest like:
- Increase your repayments You may be thinking: why on earth would I do that?! However by increasing your repayment amounts, beyond the minimum, you could shave a good number of years off your loan. Wouldn’t you prefer to use your money in other ways that repay a loan off for what seems forever?
- Lump sums Expecting a handsome tax return? Got some loot coming in from wedding gifts? Sold your collectable car that you stopped driving years ago? Then put it towards your debt! Dropping lump sums into your debt can shave years off your loan. Remember, the less you owe the less you pay!
Renovate for profit
When we normally think about renovating our home, we’re envisage the new environment and how lovely and peaceful it will be. A new reading nook, a bigger living space, the options are endless. But did you think for a minute that a reno will potentially increase the value of your home? Yes please!
You may not want to sell just now, but it’s great to know that your planned renovations are not in vain and will benefit you in the long run. Here are some ideas to get you started:
- fresh coat of paint, inside and/or out
- cement rendering the outer shell
- upgrading the kitchen and/or bathroom
- remove a few walls for open plan living
- professional landscaping
- add a granny flat.
Go Pro or Do-It-Yourself renovation
The age-old conundrum. Do you hire a professional team of tradespeople or do you take on the renovation yourself?
Put it this way. DIY renovations means that you’re genuinely taking a risk and may end up paying double if not more to rectify your errors. It may pay to have a professional look at your job, giving you more time to to plan your wonderful visions instead.
Make sure when you're sorting through personal loans you check the loan you're looking at is available in your area whether Melbourne, Sydney, Perth or anywhere in Australia.
^See information about the Mozo Experts Choice Personal Loans Awards
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