Does your home need a few touch ups to have it feeling new and fresh again?
Think back to the day you picked up the keys to your new home. The rush of joy and excitement you felt when you took your first step through the door and into your home. As you look around today, your home seems to have lost some of its glamour and polish over the years. You notice new houses with modern touches springing up around your neighbourhood and that gets you thinking about revamping your house and how to make that a reality. Home improvements aren’t cheap these days. Thankfully, renovation loans have helped many Aussie families like yours make improvements and revive the beauty of their homes.
If you’re based in Brisbane and looking to renovate or make a few minor home improvements, we can help you access the right home loan for your needs. Let’s make your vision for your new, modern house a reality.
Before you apply for a home improvement loan
Make sure you plan carefully. We’ve seen far too many people overextend their finances as a result of poor planning. An organised plan for your renovation project will not only help you budget appropriately but may also help you access more funds.
As part of your plans, it pays to ensure you allow a healthy buffer in case you need to access more funds down the line. Having an organised plan will help you keep track of all your expenses and ensure that you don’t underestimate costs.
No matter the situation, your Time Home Loans broker is committed to finding the highest valuation on your property and helping you access your desired renovation loan. Our mortgage brokers and partnered financial planners can also help you stay within your borrowing capacity and avoid overextending your finances. If you’d like to see what options are available for you to make the home improvements you’ve been dreaming about, book in an appointment with our friendly team in our Brisbane office today.
How to access finance for a renovation
The typical homeowner will spend many months, or even years, saving for renovations. If you don’t hold enough equity in your property for the renovations you’d like to do then you will probably need to consider supplementing with savings.
However, it is still possible that you may be able to access a renovation loan from a lending institution near you. Our team is familiar with all the local lenders and their requirements for renovation loans. If you’re concerned about how much you might be able to borrow or if you’ve applied for a loan and you feel your bank has not provided a fair valuation, Time Home Loans can help.
Step 1: Income and financial position assessment
At the beginning of any lending journey is an assessment of your income and financial status. There is a lot of information lending institutions look for here and our financial advisors and brokers will ensure we cover all bases with you. If you do not have the income or financial standing required for your renovations, you will need to wait until your income position improves.
We’ll run the numbers for you straight away so you know exactly where you stand and what options you have available to proceed with your renovation plans.
Step 2: Equity assessment with a Time Home Loans mortgage broker
Besides income, your biggest barrier to obtaining the finance you need to complete your renovations is that you may not hold enough equity. We’ll need to figure out exactly how much equity you can tap into and whether it will be enough to fund your dream renovations. A home equity loan will help you borrow against the equity available on your property. It can be a great way to fund large renovation projects.
Step 3: Assess other options for financing the renovation
If you do not have enough equity, we can also explore a couple other options, the first is an unsecured personal loan. A few lenders have what’s known as a renovator’s loan which will allow you to tap into very competitive rates on the market. Depending on the institution, you may be able to access between $25,000 – $50,000 in this manner.
You may also look to refinance your home loan and find a better deal on your mortgage. Refinancing is a great way to consolidate debt, lower your interest rates and pay off the loan faster. You may be able to tap into extra funds as part of the refinancing process though you’ll need to be wary of any extra fees and charges associated as well.
Step 4: Property valuation
At some stage, you’ll need to go through the process of having your property valued by the lender. If you’ve already gone through this process but feel your property has been undervalued, we can assess this on your behalf. If we have reason to believe we can find a better valuation through a different lending institution, we’ll negotiate on your behalf and do what we can to increase the valuation of your property where possible.
In the event your property can be valued higher, you will have two options. We can return to your initial lender and renegotiate the valuation amount with them. If the lender doesn’t budge, you will have the capacity to choose the other lender who has provided a better valuation and will enable you to complete your desired renovations.