Financing Your Remodel
Renovating is not cheap and can cost more than you initially anticipated. The amount you need for a renovation project, extension, or home improvement may be more than your savings allow. Therefore, you might need to remortgage your home to help fund these improvements.
A home renovation can create a dream house for you to live in or add value to a property before selling it. Renovation loans can cover a range of home improvements, including driveways, extensions, landscaping, basic spruce-ups like painting and floor coverings, swimming pools, and more.
If you have enough equity in your home and can afford the repayments, it is possible to remortgage to foot the bill for home improvements and extensions.
First, decide what type of home improvements you want to make. Do you want to decorate the property or fit in a brand-new kitchen or bathroom? Or do you need to pay for more substantial building work? Cosmetic tidy-ups could cost as little as $5,000, but the average renovation loan is around $50,000.
You’ll need to know how much your home improvements are likely to cost before you get started, so you’ll have a firm idea of how much equity you’ll need to release. Make sure you get a registered valuer to appraise the property and show them the plans to see the value the renovations would add.
Get a reliable estimate from HomePro
The best way to work out an estimate for your specific project is to arrange a consultation with the team here at HomePro. We will meet with you to discuss your requirements and produce a detailed plan after consultation with our experienced interior designers.
Following the consultation, HomePro will produce a detailed estimate, fine-tuned to meet any changes you may require to suit the specifications of your project and fit your budget.
How a remortgage works
Adding the cost of home improvements to your mortgage can be cheaper than other forms of finance, such as taking out a personal loan or using a credit card. When you remortgage your home, you extend your home loan to fund a new expense.
You increase your mortgage for the amount you currently have outstanding, plus the new amount you want to raise for your project. You will need to consider whether you have enough financial stability to take on larger mortgage repayments and whether the renovations will pay off in the long run.
You may only require a loan top-up for a small renovation project, or a second home loan may be required for a large-scale renovation.
Ready to start your dream renovation?
If you are ready to start your renovations but need a little help with financing, get in touch with the team here at HomePro, and we can recommend a great consultant group to help you get your finances in order!
Get in touch with any questions you have or to request a free consultation.