Lately, you’ve been thinking about a renovation project . Maybe it’s the mouldy bathroom tiles, the peeling 70s wallpaper, or perhaps you step out of the shower feeling a little less clean than you’d like. Whatever the reason, it’s time to think about how you’re going to take on this new project.
With a few DIY disasters under your belt, you might leave this one up to the professionals. And with small children, school fees and life’s many expenses, it’s likely you’ll need a little financial help to make your dream renovation come to life.
When it comes to funding a home renovation project, there are a few different avenues families can take, from personal loans to credit cards.
Top up your existing home loan
A second option is refinancing
to top up your existing home loan. Essentially, this means asking your bank for a bigger home loan using the equity in your home to fund the renovations or building work. This option allows you to not only borrow funds for your renovation project, but makes sure your home loan is meeting your changing needs.
If you don’t wish to use your home equity, another option may be to take out a personal loan
to help you fund your project. A personal loan has a simpler application process and is a good option if you’re doing a smaller project or looking to pay off your loan quickly.
Credit cards will allow you to make purchases towards your renovation, but only up to your credit limit. You’ll also need to keep in mind that a minimum credit card payment needs to be made every month and that interest rates are usually higher than a loan, so keeping a close eye on your balance is a must.
A home renovation project is an exciting step for you and your family, and while financing options can seem difficult, they don’t have to be. It can be a good idea to talk to your local branch manager
who will help you work through your options.