Looking to renovate your home? A renovation loan in Australia may be the perfect solution. Whether you're looking to make minor updates or undertake a major renovation, a renovation loan can provide you with the funds you need to create the home of your dreams.
There are several types of renovation loans available in Australia, including home improvement loans, construction loans, and cash-out refinancing. With a home improvement loan, you can access funds to make minor updates to your home, such as upgrading your kitchen or bathroom. A construction loan, on the other hand, is designed for major renovations, such as adding an extension or completely renovating your home. If you've built up significant equity in your home, a cash-out refinance can provide you with the funds you need to undertake a larger renovation project.
At Fox Finance Group we offer a range of renovation loan options to suit your needs. Our experienced lending team can guide you through the application process and help you find the best loan for your individual situation. With flexible terms and competitive interest rates, our renovation loans can help you create the home you've always wanted.
To learn more about our renovation loan options, contact Fox Finance Group today. Our friendly team is ready to help you take the first step towards achieving your home renovation goals.
In Australia, a renovation loan is a type of home loan designed specifically for homeowners who want to undertake significant home renovations or upgrades. There are a few different types of renovation loans available in Australia, including:
This type of loan is designed for homeowners who want to make minor renovations, such as upgrading their kitchen or bathroom. These loans typically have lower interest rates than other renovation loans and can be a good option for smaller projects.
A construction loan is designed for homeowners who want to undertake major renovations, such as adding an extension or completely renovating their home. These loans typically have higher interest rates than other renovation loans and are structured to release funds in stages as the renovation progresses.
Refinancing with cash-out allows homeowners to access the equity in their home to fund renovations. This can be a good option for homeowners who have built up significant equity in their home and want to undertake a larger renovation project.
It's important to note that renovation loans in Australia can have strict eligibility criteria and may require detailed plans and quotes from licensed builders or tradespeople. Homeowners should also carefully consider the costs of the renovation and whether they will be able to comfortably manage the repayments on the loan.
As always, it's a good idea to speak to a mortgage professional (like us) to explore your options and find the best renovation loan for your needs.
You might also want to ask yourself if getting a renovation loan is even the right move for the property itself. We all want to do things for our own personal enjoyment in our house but does it actually increase the value of the house?
Before you begin a renovation, you might want to consider a few things:
No matter what, whenever you’re doing a home renovation, you should consider doing something that will raise the value of the property. Kitchens and baths are where the money is when selling a home so consider starting there.
If you’re applying for a home improvement loan, it’s easy to get swept up by the excitement of thinking about your new home renovation. But, it’s important to consider the following factors before taking on a loan.
Can you afford a loan right now? You might be able to get approved for a home renovation loan but that doesn’t necessarily mean you should. Pay attention to the interest rate and look at what your repayments would be.
Take a look at your monthly expenses and see if you have room to make that additional payment every month for the next number of years. If you feel like you’re being stretched to the max already, it might not be the right time for a renovation loan.
Look at the terms of the loan and make sure they’re flexible enough. Can you make additional repayments whenever you want? Can you pay the loan off early without a penalty? Can you change the loan terms halfway through the loan?
Applying for home loan pre-approval can give you a good idea of how much you could afford to borrow, so you know your limits when searching for your dream home.
The first step of any home buying process is to receive a home loan pre-approval. We’ll walk you through the steps of getting you pre-approved. That way, you have an idea of how much money you’ll be able to spend on the home of your dreams. Not knowing how much you can afford is a scary situation to find yourself in. Making a commitment to purchase a home without knowing this ahead of time is never a smart decision. Let the team at Fox Finance Group walk you through this step-by-step. We’ll give you the freedom of choice and peace of mind that comes from knowing you can afford the homes you’re looking at, based on your debt-to-income ratio.
Apply for pre approvalWhether you’re buying your first home, next home, an investment property, renovating or refinancing, we can help you make your next move with confidence.
Variable rate home lending occurs when the interest rate on your home loans changes over time. These interest rates change as the market changes and, as a result, your home mortgage payments will change as well. As interest rates fall, so will your mortgage payment. As interest rates increase, so will your mortgage payment. The upside to these types of loans is that you generally get better perks when you apply, such as lower introductory rates for a specified period of time. The downside is the unpredictability of these loans and inability to forecast future rates.
Apply for a home loanFixed rate home loans give you the certainty of knowing what your repayments will be during the fixed period.
Home loan interest rates that are fixed do not fluctuate with the market. You’re locked in at the interest rate you received when you were approved. This will result in your payments being the same over time unless you refinance. The positive side of this is that you know exactly what your monthly mortgage payment will be, so you can plan and budget for it accordingly. These loans are less flexible and will not fall during a market where interest rates are declining. People who have fixed rate loans will need to refinance if they want to get a lower interest rate later on during the loan period.
Apply for a home loanCan’t decide between a variable or fixed home loan? You might consider splitting your home loan into part fixed, part variable rate so you can benefit from both certainty and flexibility.
A split loan is a hybrid of the two options. Part of your loan will be dedicated to a fixed interest rate and part of it will be a variable interest rate.
Apply for a loanLower repayments during the interest-only period could help you save more or pay off other more expensive debts.
Interest Only Home Lending is when you pay only the interest for the first number of years during the loan. This will make your mortgage payments lower on the front end but higher on the back end of the loan. There are positives to these types of home loans if you’re trying to buy a second home that may become your permanent home. Paying only the interest will allow you to continue paying the first mortgage while contributing to the second one.
Apply for a home loanAn equity loan lets you borrow against the equity in your home. You could unlock equity to fund a renovation, investment property or more.
A Home Equity Release is a loan that allows you to leverage the equity you have in your home to make improvements. Those changes may help you sell your home for more money someday. It can fund home renovations and you can even use it on a second property. Equity is the difference between the value of your home in the current market and the amount of money remaining on your loan. When you’re paying off a home loan, the equity grows. If your property is increasing in value, the equity you have in your home will increase as well. For example, if you purchased a home for $450,000 and deposited $100,000, you then have $100,000 worth of equity in that house. If the value of the home increases to $500,000, and you pay another $50,000 over time on the house, you then have $200,000 in equity. You can refinance up to 80% of the value of the property and subtract the amount you owe to figure out what you would be eligible for in a home equity loan.
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Enter some basic details about your home loan enquiry in our simple online form.
Discuss your home loan preferences and application information with our friendly Home Lending Specialists.
Your Home Lending Specialist will guide you through all details of your mortgage pre-approval.
Once everything is verified, we’ll discuss your loan contracts together for you to then sign.
Your loan funds will be processed by the lender when settlement is finalised. It's that simple!
Enter some basic details about your home loan enquiry in our simple online form.
Discuss your home loan preferences and application information with our friendly Home Lending Specialists.
Your Home Lending Specialist will guide you through all details of your mortgage pre-approval.
Once everything is verified, we’ll discuss your loan contracts together for you to then sign.
Your loan funds will be processed by the lender when settlement is finalised. It's that simple!
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Banks and other home loan financiers do consider your income, as well as other criteria, before approving a loan application. On average, banks will lend up to 95% of the value of property. This is known as the Loan-to-Value ratio (LVR). Talk to our team of Home Loan Specialists for a free servicing calculation to help determine your borrowing power. Contact our friendly team or apply now – its obligation free.
The deposit amount for a home loan really depends on the property that you are looking to buy. Lenders tend to look for a minimum of 5% deposit (plus upfront fees). As an example: if you are looking to buy an $800,000 home, you will need to have $40,000 deposit available. However, we do have many approved lenders on our panel who all have different lending criteria. Speak to our Home Loan Specialists so we can help you find the right home loan for your circumstances. Call us now or enquiry about a home loan online – its obligation free.
Guarantors are responsible for paying back the “guaranteed loan” or the entire home loan if the borrowers cannot afford to make their loan repayments. The guarantor’s level of responsibility for the loan depends on the type of guarantee they are providing – for example a Limited Guarantee, or an Unlimited Guarantee. To be a Guarantor, the lender will consider your application in a similar way to the main parties to the loan. Generally speaking, it is usually a parent or close relative that would put their hand up to take on this responsibility.
Your mortgage repayments will depend on the amount that you borrow, and interest rate of the home loan. Use our home loan repayment calculator to get an indication of your repayments – or have an obligation free chat to our Home Loan Experts today. Call us now – we’d love to help you work out what your repayments will look like.
Home loan rates are determined on a case-by-case basis, dependant on several factors. It can be a minefield for homeowners. That’s why it’s a great idea to let our Home Loan Specialists do all the hard work for you! We’ll find you the best home loan rate available for your circumstances – guaranteed! We’ll help you to secure the best rate on the market by working through all of the aspects that determine rates: your deposit amount, your loan term, your credit history, your income and many other factors. We’ll make the process easy for you – call us now or apply now to fast track the process – its obligation free.
