What are renovation loans?
Renovating your home can be a great way to improve its appearance and make it more comfortable to live in. Some people choose to renovate their homes when they first move in, while others wait until they’ve lived there for a while and know what changes they want to make.
In Australia, there are many different types of house renovation loans available that can help you finance your renovation project. But when it comes to renovation loans how they work is a question we often get asked.
Renovation loans Australia help homeowners avoid incurring additional interest over the life of their existing mortgage. It can be used for house repairs and improvements like adding new furniture, an extra room, or an outdoor kitchen. A renovation loan can also be used to finance substantial renovations meant to increase the property value of homes.
Taking out a home renovation loan means you pay a lot less in interest as the loan term is considerably shorter: 1-7 years instead of 30 years on a regular mortgage.