Many people often think of completing a home renovation. Renovations are often talked about, but are always a pain, but are always a pain to plan, as well as deal with all the encumbering costs. To make this headache-free, the best course of action is to look for the best way to fund a home renovation. In financing home renovations there are a few options you can choose from – either you utilise your savings, use your built-up equity from existing property, or secure additional funds from your chosen lender.

It’s tempting to use your own savings or existing funds kept in your loan offset or redraw facilities. However, take note that if you ever opt for using the funds in your offset account or redraw facility, this will have an effect on your current loan in the long term. Interest expenses may increase as well as the time taken in repaying the loan.

You might also want to consider borrowing additional capital through your existing property’s equity. To do this, you would increase the size of your overall loan and then place all of these funds into your offset account. By doing so, this allows you to save on additional interest until you incur the additional expenses.

Make sure to consult a professional in respect to financial implications if you have plans on refinancing your loan (because this is also a similar commitment to replacing your existing home loan). Want to choose a renovation loan? Then contact our Renovation Loans Geelong team to provide you with the best strategy based on your financial health and outlook!