Renovation Loans

If you're looking to borrow money your home renovation whether its for a new coat of paint or a kitchen upgrade, Mozo's expert personal loan comparisons help you find the right options and the cheapest rates.

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How much can I borrow to renovate?

How much you'll be able to borrow will depend on your personal circumstances and the size of the project you're looking to undertake. Personal loans are a popular choice if you are doing a small renovation project like new landscaping or updating the bathroom. If you are thinking of a bigger reno project like a new story on the house or a garage, you might want to think about refinancing your home loan.

Before apply for a renovation loan, it's a good idea to get a firm idea of the budget you'll need, this includes getting builders quotes or estimates. You don't want to find yourself part way through your reno and run out of money or committing to a big project only to find out that you can't afford the repayments.  

Can I apply online?

Yes. Most Australian personal loan providers that are featured on our website have  online loan applications. Applying online is a much more convenient option than going to a bank branch for many people. You'll still need to verify your ID, address details and income and employment, so make sure you have all of this information on hand when you are getting your application ready.

How long will I have to pay back a renovation loan? 

The maximum loan term for personal loans is usually around seven years, but some lenders might offer a loan for up to 10 years. No matter what loan term you originally opt for, it's a good idea to look for a loan that has flexibility and allows you to make extra repayments whenever you like so that you can save on interest repayments.

Renovation loan comparisons on Mozo  - page last updated January 26, 2020

interest rate
comparison rate*
monthly repayment**

I want to borrow

years

  • 5.75% p.a.to 19.99% p.a.

    6.89% p.a.to 23.07% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $35,490.18 including fees.

      Compare
    Details
  • 8.00% p.a.

    8.21% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 8.00% would cost $36,647.51 including fees.

      Compare
    Details
  • 6.99% p.a.to 28.69% p.a.

    7.69% p.a.to 29.55% p.a.based on $30,000
    over 5 years

    Terms from 1 to 5 years. Representative example: a 5 year $30,000 loan at 6.99% would cost $36,133.67 including fees.

      Compare
    Details
  • mozo-experts-choice-2019

    6.79% p.a.

    8.83% p.a.based on $10,000
    over 3 years

    Terms from 1 to 5 years. Representative example: a 3 year $10,000 loan at 6.79% would cost $11,380.22 including fees.

      Compare
    Details
  • 12.45% p.a.

    13.32% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 12.45% would cost $41,200.53 including fees.

      Compare
    Details
  • 4.69% p.a.

    7.16% p.a.based on $10,000
    over 3 years

    Terms from 1 to 10 years. Representative example: a 3 year $10,000 loan at 4.69% would cost $11,119.49 including fees.

      Compare
    Details
  • 8.50% p.a.to 16.99% p.a.

    9.06% p.a.to 17.53% p.a.based on $30,000
    over 5 years

    Terms from 1 to 5 years. Representative example: a 5 year $30,000 loan at 8.50% would cost $37,379.76 including fees.

      Compare
    Details
  • 8.99% p.a.

    9.13% p.a.based on $30,000
    over 5 years

    Terms from 2 to 5 years. Representative example: a 5 year $30,000 loan at 8.99% would cost $37,456.30 including fees.

      Compare
    Details
  • 7.95% p.a.to 16.95% p.a.

    9.56% p.a.to 18.53% p.a.based on $30,000
    over 5 years

    Terms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 7.95% would cost $37,729.45 including fees.

      Compare
    Details
  • 9.99% p.a.

    11.74% p.a.based on $10,000
    over 3 years

    Terms from 1 to 7 years. Representative example: a 3 year $10,000 loan at 9.99% would cost $11,864.50 including fees.

      Compare
    Details
  • 12.45% p.a.

    13.32% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 12.45% would cost $41,200.53 including fees.

      Compare
    Details
  • 7.65% p.a.to 26.99% p.a.

    7.65% p.a.to 23.5% p.a.based on $30,000
    over 5 years

    Terms from 3 to 7 years. Representative example: a 5 year $30,000 loan at 7.65% would cost $36,196.75 including fees.

      Compare
    Details
  • 12.69% p.a.to 18.69% p.a.

    13.56% p.a.to 19.53% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 12.69% would cost $41,420.45 including fees.

      Compare
    Details

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*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. WARNING: 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.

**Representative example figures and monthly repayment figures are estimates only, based on the advertised rate, mandatory fees, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Personal Loans Awards

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Renovation loans, your questions answered

If you’ve been watching the paint on your walls chip away for far too long, or have been meaning to replace some cracked bathroom tiles, a renovation loan can be an easy way to fund your reno projects with minimal fuss.

If you’re interested in finding out if this type of loan is right for you, we’ve answered some of the most frequently asked questions about home renovation loans below.

Personal loan or renovation loan, is there a difference?

For the most part, no. Personal loans can be used to finance a number of things such as holidays, motorcycle purchases and even medical debts.  Using a personal loan is a popular choice to fund your small-scale renovations.

If you’re looking to fund larger renovations, refinancing your home loan, or taking out a construction loan might be better options.

What should I look for in a renovation loan?

When choosing a personal loan to renovate your home, there are some key features you’ll want to look at, such as:

  • Competitive interest rate. Your interest rate will play a big part in what your renovation loan repayments will look like. Saving a few bucks a week might not seem like much now, but can add up to thousands of dollars over the life of your loan, so it’s important you snag a great deal.
  • Low fees. As with any loan, something you might not expect that can sting you is fees. The types of fees you need to look out for are upfront application fees or set-up fees, ongoing service fees, late payment fees and loan discharge fees. These can add an extra margin onto your debt in addition to your interest, so make sure you’re reading the fine print so you don’t get caught out paying more than you need to.
  • Flexible features. Renovating a home can be a strain on the budget, so it’s important you have flexibility in what your repayment schedule will look like. You can often opt for weekly, fortnightly or monthly repayments so you can better manage your debt. Another handy feature to look out for is the ability to make fee free extra repayments, which will allow you to pay off your loan faster, and a redraw facility in case you’re in a pinch and need access to the extra money you paid.

How much will a renovation loan cost me?

If you’ve got your eye on a shiny new basin, you’ve got to think beyond just the original quote price and take into consideration loan interest and fees, and the length of time you need the loan for.

You can use Mozo’s renovation loan calculator to figure out what your weekly, fortnightly or monthly repayments might look like and how much you can expect to pay in interest in total. Keep in mind that in order to keep your repayments low, your first step is finding a low rate renovation loan.

How can I get the best home renovation loan rate around?

Once you’re ready to make your dreams of an amazing outdoor deck area a reality, your next step is to snag a competitive interest rate. Here are some ways you can make sure you’re getting a great deal: 

  • Keep your credit in good shape. Keeping your credit score healthy by staying on top of other loan repayments is a great way to catch yourself a good interest rate, because many lenders have tiered interest rates based on your credit history. Making sure you always make regular repayments and aren’t building up too much debt will be great for your credit score.
  • Ask for a better deal. Don’t be afraid to pick up the phone or go into a branch and simply ask your lender for a better rate. Depending on your situation, your lender might even waive introductory fees, helping you get off on the right foot.
  • Compare your options. To make sure you’re getting a great deal, it’s important you look at interest rates from different lenders. Mozo makes it easy for you by putting competitive renovation loan interest rates side-by-side, to help you compare renovation loan options.

Should I get a renovation loan or use my credit card?

If you’re stuck on whether to use credit card to finance your home renovations or whether to take out a loan, know that it’s likely to come down to your borrowing needs. Personal loans offer benefits such as lower interest rates, consistent repayments and a set borrowing amount, which is good for those on a strict budget.

If you opt to use a credit card to fund your renovations, you might be able to save on interest if you’re making smaller, incremental purchases and paying them off before you have the chance to build too much debt. If you’re going to do this, go with a low interest credit card, and shop around for added benefits such as interest-free periods or no annual fees.

For a more in depth guide for ways to finance your home renovation, check out our home renovation funding guide.

Are renovation loans for home buyers and renovation loans for homeowners different?

You options for funding your renovations will differ based on if you’re a first home buyer or homeowner.

If you’re a first home buyer who has just taken out a large debt in the form of a home loan, it might be hard to secure a separate renovation loan. Instead, if your budget allows consider borrowing more from your home loan lender to make your necessary renovations. Keep in mind that by tagging it onto your 30-year mortgage, it will build up significant interest over that period of time, so whenever you can put extra funds towards your home loan.

If you’re an existing homeowner, you have options at your disposal. For a smaller renovation loan, you can choose to get a secured loan, which will generally have a lower interest rate but you will need to offer up an asset (ie. your home) as security in case you default on the loan. Don’t like that idea? You could also opt for an unsecured loan. These generally have higher interest rates but offer flexibility so if you do have extra funds you can pay out the loan early without penalties.  

I have other debts. Can I still get a home renovation loan?

Most Aussies are carrying some form of debt, whether that be with their mortgage, credit card debt or car loans. As long as you’re staying on top of repayments and keeping your credit in top shape, and your budget can easily handle the extra repayments, your chances for renovation loan approval should be high.

To improve your chances at getting approved, here are some steps you can take:

  • Start small. The bigger the loan, the bigger the risk, so asking for a smaller loan could be your best bet. Your lender might also place a premium on your interest rate if you’re viewed as risky, so starting small could be a good way to make sure you can actually keep up with repayments and not dig yourself a hole.
  • Don’t apply too many times. Multiple applications don’t look promising to your lender, and champagne tastes on a beer budget won’t get you very far - so making sure you’re only applying for a loan amount you can actually afford is the first step to getting approved.
  • Prove your reliability. Your lender determines your reliability based on your credit score, so you’ll need to work out a budget and stay on top of repayments on your other debts to prove your steadiness.

How do I apply for a renovation loan?

Most renovation loan applications can be completed online, making it easier and faster for you to get approved. Your first step in applying for a renovation loan is comparing different personal loan options in the comparison table above to find a deal that suits your needs. Once you’ve done that, click the blue ‘Go to site’ button which will take you directly to where you need to be on the provider’s website.

A few things you’ll need to have on hand before you start your application is proof of identity such as a current passport or driver's license, proof of income such as your pay slips, and financial documents such as bank statements, assets, debts and liabilities.


For residents of NSW and Victoria's capital cities, it may be worth checking out Sydney personal loans and Melbourne personal loans for some location specific loan options.

Personal Loan Reviews

St.George Secured Personal Loan review
Overall 1/10
Horrible communication skills.

After having a loan approved and signing my documents, they then proceeded to not contact me and tell me they required payslips, these were sent through and they then decided they wanted my bank statements as well and also did not communicate this to me, after calling 6 times in 2 weeks my application still hasn’t been processed.

Read full review

After having a loan approved and signing my documents, they then proceeded to not contact me and tell me they required payslips, these were sent through and they then decided they wanted my bank statements as well and also did not communicate this to me, after calling 6 times in 2 weeks my application still hasn’t been processed.

Price
0/10
Features
0/10
Customer service
0/10
Convenience
0/10
Trust
0/10
Less
Victoria, New South Wales reviewed about 2 months ago
Commonwealth Bank Personal Loan review
Overall 8/10
Review for personal loan.

The reason I didn’t give 10 out of 10, is because nothing and no one is perfect but overall, i’m pretty satisfied with commbank and their customer service. They give me all the information in layman’s terms and are happy to help.

Read full review

The reason I didn’t give 10 out of 10, is because nothing and no one is perfect but overall, i’m pretty satisfied with commbank and their customer service. They give me all the information in layman’s terms and are happy to help.

Price
9/10
Features
9/10
Customer service
10/10
Convenience
9/10
Trust
8/10
Less
Crystal, South Australia reviewed about 1 month ago
Westpac Personal Loan review
Overall 8/10
Quick response time.

I like the fact that I could apply online and have an immediate response.

Read full review

I like the fact that I could apply online and have an immediate response.

Price
3/10
Features
5/10
Customer service
9/10
Convenience
10/10
Trust
7/10
Less
Sylvia, Western Australia reviewed about 1 month ago

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