Home renovations are often talked about but can be stressful to consider. Finding the right way to finance the project is critical to having a successful home renovation without any headaches. There are three options in terms of funding – paying out of pocket, using equity from an existing property or securing funds from a lender.

If you wish to access your savings or funds held in a loan offset or redraw facility, this option is more straightforward than taking on additional debt. However, it is essential to consider the effects that this may have on your loan in the long run, as it will lead to increased interest costs and could potentially extend the repayment period.

You may consider increasing your loan size and transferring all the funds to an offset account to take advantage of any potential equity in your property, which can result in further savings on interest costs until expenses.

Refinancing your loan is a similar commitment to home loan replacement, and speaking with a professional regarding the potential financial implications is essential. Our Renovation Loans Glen Waverley team have extensive experience in helping with renovation projects and can provide insights into the most suitable strategy for your financial situation.