People often speak highly about home renovations, but that doesn’t take the stress away. A crucial part in completing a successful home renovation product, without all the headache, is to find the best way to fund it. A few options you have in financing home renovations is to pay out of your pocket (using your savings), use your built-up equity from your existing property, or secure additional funds through a lender.

For you not to incur any addition debt it is safe for you to use your own savings or existing funds kept in your loan offset or redraw facilities, which is a more straightforward option. If using funds in your offset account, or redraw facility, is what you plan to do you have to, first, understand the effect that it will have on your current loan in the long run, because your interest expenses will increase, and the time taken in repaying the loan.

You may also increase your loan size, which is what happens if you are considering borrowing additional capital through your existing property’s equity, and place all of these funds into your offset account. This would allow you, therefore, to save on additional interest, until your expenses have incurred.

Refinancing your loan is also similar commitment in replacing your existing home loan, and it is recommended that you consult a professional in respect to the financial implications of doing so. The team we have for Renovation Loans have excellent experience in helping with renovation projects, so you can trust us to provide you with the best strategy based on your financial status and goals.