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Home Improvement

Home Improvement Finance

Do you have a home improvement idea? Thinking of sitting on your new deck, under a new pergola this summer? And if it’s really hot, maybe you’ll jump in your new swimming pool with the kids… Sounds great, but how are you going to pay for it?

A home Improvement, whether big or small can be costly, and that often means seeking finance to make your plans a reality a lot sooner. While not as fun as planning the actual renovation, taking the time to find the right option should be just as important as it can help make renovating and paying back the funds you’ve borrowed less stressful.

Some home improvements that are commonly financed are swimming pools, decks, pergolas, landscaping, home extensions like building on a new room, new kitchens and new bathrooms. Even when renovating yourself, a home improvement can still cost more than what you might have in savings. And even if you do have the savings, you can use them for something more exciting like a family holiday.

Below are five ways to finance home improvements.

Home equity

If you have home equity available you may be able to take out a new home loan or extend your current home loan to pay for renovations. Equity is the difference between the value of your home and the amount you owe on your home loan.

If you have had your home loan for a long period of time or you home has increased in value since you purchased it, you’ll more than likely have some equity which you can borrow against for renovations. Your mortgage broker will be able to work this out with you.


Refinancing your home loan to pay for your home improvement is also suitable, particularly for large renovations as it allows you to spread the cost over a longer period of time and you’ll only be making one repayment as opposed to paying off a personal loan or credit card in addition to your home loan.

Refinancing is also a great opportunity to look for a better deal on your mortgage with a lower interest rate or better features from a different lender. A 0.25% saving on a $500,000 Home Loan can save you more than $29,000 over the life of your home loan*. We can review this for you, for free with just 4 pieces of information from you… see here

When you’re looking at refinancing and working out if it is going to be financially beneficial, you do need to consider there may be fees associated with exiting your existing loan and upfront costs associated with a new loan. Your mortgage broker will be able to work all of this out and do the comparison with you.

Mortgage redraws

Many home loans have a redraw facility which means if you have been paying off more than your required payments, you may be able to take out this extra amount. Depending on your lender, there can be minimum and maximum amounts you are able to redraw and you may be charged fees. However, often no extra approval is needed which can make this an attractive, fast and easy way to arrange renovation finance.

Personal loan

Taking out a personal loan for home improvement is becoming quite popular among home owners for all sizes of renovations as you can usually borrow between $5,000 – $50,000. A personal loan allows you to keep track of the debt specifically associated with the renovation and establish a budget to pay back the loan with set repayments over a fixed period of time.

While the interest on a personal loan will generally be higher than on a home loan, as you are paying back the loan over a much shorter period of time (between 1 to 7 years) the actual amount of interest you pay can be less.

Credit card

If you have a credit card with a high enough limit to cover the cost of your renovations, it can be one of the quickest and most flexible ways of getting the funds you need. If you don’t already have a credit card, but only need to borrow a smaller amount of money, it can also be a good option without having to go through a loan application or make changes to your mortgage.

However, you do need to consider the interest rate which may be higher than the other financing options available to you, and the amount of time it will take you to pay the balance off. If it will take you a long term to pay back the debt, financing renovations with a credit card can become quite costly with the interest you end up paying.

Lend Me – Home Loan Mortgage Brokers – Perth, Western Australia

*Savings calculated on a 30 year loan term. These examples are actual client cases that had specific situations and needs, our responsible lending process will apply in all cases. See our credit guide for further detail.

How we've helped our clients...

"Starting up a new business isn’t easy, with so many things to think about it can be quite a stressful process. With the services of Lend Me Asset Finance and Locate Me, they have really helped to take this stress away in the way of meeting me on my job sites to sign documents and dealing directly with the Car Dealers, Bobcat Dealers and even my accountant.

The guys at Lend Me really do take the time to listen to what you are after and work in to suit you and make the transaction so simple and convenient, I can’t thank them enough! I’ve also recommended their services to 3 friends already and have only had good feedback. Lend Me have certainly gained a client for life! Reece"

"Hi there, Saturday just gone, I picked up my dream car, a 2013 black lancer LX.

I'd like to take this chance to say Lend Me Car Loan customer service was by the far the best I have ever received. What I thought was going to be tough work turned out to be the opposite. The process easy, simple and quick for me, she did the hard yards... I will be recommending friends and family... Thanks again! Regards, Stephanie"

I just wanted to say thank you... This has been the smoothest process. You and the other girls I dealt with at Lend Me Home Loans were so friendly and so efficient with everything, I felt like I was the only customer you were dealing with.

I will definitely be raving on to loads of people about Lend Me and the great service you provide.

I am stoked, this will take so much pressure off and will seriously change our lives... we can actually get ahead on payments and start saving some more money.

Thanks again, Kath :)

"Emily & I just want to take this opportunity to say a very big thank you for seeing us through our first home purchase and home loan, you have been a massive help not to mention getting us out of a sticky situation. We will definitely be in touch in the near future and will refer/recommend you to our family & friends if looking out for a friendly, helpful and reliable mortgage broker.

Take care and speak soon. Matt & Emily" 

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