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Steps to securing your Home Renovation Loan

You’ve decided to buckle up your tool belt and embark on home renovations. Perhaps you’re planning to upgrade your kitchen? Or finally squeeze in that extra bathroom for the kids? Whether it’s a small upgrade, big extension or returning a property to its former glory, home renovations can make your space more comfortable today and pay off financially in the future. At RACQ Bank, we’re here to help you reach your property dreams sooner with our flexible home renovation loan options. Read our simple, three-step guide to financing your home renovation so you know exactly what to expect before picking up the tools.

Step 1

Planning your Home Renovation

No matter the scale of your home renovation, it’s always worth planning your project first. Know what you want to achieve with your home renovation to get an accurate idea of your budget.

Renovating tip!

There can be plenty of pitfalls as you go along. To avoid these, take a look at our Home Renovation Survival Guide.


Consider the following questions before you embark on your project and be prepared from the get-go;

  • Is renovating the right option? How much value will your renovation add? Is there a risk you'll over-capitalise? Would you be better off buying another house or building a home from scratch?
  • What are your financial options? Know how you’ll fund the project. Do you have equity in your home? Are you redrawing on your mortgage? Or are you refinancing?
  • What's your budget – Crunch the numbers with our helpful online calculator and set a solid budget. It’s also a good idea to include a 10% buffer to cover unexpected extras or surprises that can pop up.
  • What professionals will you hire? – Are you going to be using an architect, draftsperson or builder? Do your homework by looking at their previous work and perform some checks with regulatory bodies, like Master Builders Queensland.
  • Is your property protected? – The right Home and Contents Insurance can protect your property if it's undergoing some renovations.

Home Loan Calculators

Whichever way you’re planning on funding your renovation, it’s a great idea to work out the figures so you know you’ll stick to budget, know what you’ll pay if you increase your mortgage and what your home could be worth in the future. Try out our online calculators and get your results in under 60 seconds.

Step 2

Funding your home renovation

Depending on your financial situation, there are several options available to help you fund your home renovation. Our guide to financing your home renovation provides some great tips to help you out, with some finance options including:

  • Using your home’s equity: Home equity refers to the difference between the market value of your house and any mortgage you owe. If your home has a high market valuation, you may have the opportunity to withdraw a greater loan.
  • Redrawing on your mortgage: If available, redrawing from your home loan is a potential option. Not all loans have a redraw option, so we suggest talking to an RACQ lending specialist first.
  • Financing through a line of credit: A line of credit will allow you to borrow money as you need it for your renovation journey, up to the maximum amount determined.
  • Refinancing your home loan: short on savings for your home renovation? It could be a good time to review your current home loan and see whether you could save money by refinancing.
  • Applying for a personal loan: Check out our Personal Loan calculator to determine the amount you may be eligible to borrow.
  • Applying for a home loan: Use our home loan repayment calculator to give you an idea of what monthly repayment options are available.
Step 3

Comparing our Home Loans

Once you have an idea of why you’re refinancing and the amount of money you are able to borrow, it’s time to find the loan to suit your needs.


Compare all home loans
Download the home loan application checklist so you know what you'll need when you're ready to proceed with your home loan.
Step 4

Benefits of an RACQ membership

When it comes to renovating, we’re here to provide you with the same high level of service and help you’ve come to expect from us. Plus, as part of our RACQ Membership, you’ll also get access to the following advantages:

  • Great low rates and fees, with a range of loans to suit you
  • Flexible options
  • Dedicated lending specialists and access to mobile lending
  • Member discounts on homewares and home services
  • Queensland-based 24/7 call centres and dedicated branch network

Get the renovation process underway