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, a big extension, or you're 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 you pick up the tools.

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    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.

    Consider the following questions before you embark on your project to 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 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 get an idea of what your home could be worth in the future. Try out our online calculators and get your results in under 60 seconds.

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    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 apply for additional funds.
    • Redrawing on your mortgage: You may be able to access extra principal repayments you've made on your home loan. 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 home loan: Use our home loan repayment calculator to give you an idea of what monthly repayment options are available.
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    Comparing our home loans
    Once you have an idea of what your renovations are likely to cost and the amount of money you are able to borrow, it’s time to find the loan to suit your needs.

Your RACQ Bank Home Loan comes with member benefits~~

In need of a fresh coat of paint?
Enjoy a 10% discount at Wattyl Paint Centres.
Treat yourself to a little entertainment
Save on eVouchers and eGift Cards for Event Cinemas and BCC Cinemas Queensland-wide.
Save on the essentials every week
Enjoy a 4% discount on pre-purchased Woolworths Supermarket eGift Cards.
Be part of positive changes in your community
Know that RACQ funds life-saving rescue flights.

Things to note

Banking and loan products issued by Members Banking Group Limited ABN 83 087 651 054 AFSL/Australian credit licence 241195 trading as RACQ Bank. Terms, conditions, fees, charges and lending policies apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the disclosure documents for your selected product or service, including the Financial Services Guide and the Terms and Conditions, and consider if appropriate for you before deciding.

Except for RACQ Bank, any RACQ entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of RACQ Bank. RACQ Bank does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.

Insurance products (excluding Travel Insurance) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the PDS and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website.

~~ Terms and conditions apply to all offers. View the individual offer for full details. Offer is subject to availability and may be withdrawn at any time without notice.