Funding Your Renovations with Home Improvement Loans

Funding Your Renovations with Home Improvement Loans

Following the lockdowns imposed across the country, which affected millions of Australians, many families are diverting their time and attention to doing home renovations and finance this endeavour with home improvement loans.

With home improvement loans, homeowners can finance the repairs, updates, and everything that has something to do with their renovation works. This, if done properly, can add value to the property, and at the same time, improve living conditions.

To maximise this type of loan, you need to know the ins and outs of it and compare it with other financing options available for you. In this article, you will be guided on some of the basics about home improvement loans, including its variations, qualifications, and the specific steps.

Know your credit score

Just like any other home loans, the credit worthiness of each borrower is paramount. This can also provide valuable information to the lender on the level of risk they are taking should they approve your application.

READ MORE: Tips for buying your first home in Australia

At the same time, knowing your credit score before lodging your application will also allow you to estimate whether you qualify for any loan, avoiding unnecessary wasting of anyone’s time, including yours.

Read metrics, comparisons

Apart from knowing your own credit score, it is also helpful to know the ranking of lenders based on different indexes. This matrix will allow you to select the best lender based on different criteria or factors. Factors that matter to borrowers are taken into account in ranking lenders such as their customer service, rates, down payment rate, FICO score, etc.

With the scope of this survey, which covers clients from across the country, this should give you a good idea on which of the banks rank best based on this criteria.

Mortgages and loans to pay for home renovations

With the massive lockdowns imposed across the country for the past months, you have probably seen the need to upscale your home and do some makeover. Regardless of which part of the house you want to renovate, install a bar area, or probably add an extension to your current home, doing these projects can cost a lot of money.

READ MORE: Marriage or Mortgage: Should you forgo buying a house for your dream wedding?

But since many families are struggling financially the past year or so, cash can be difficult to come by. If you are struggling to finance your planned renovations, financing it with a home renovation loan is the best option.

Home loan renovations for all purposes

Not only will the home renovation loan be able to finance your renovation project, it can also serve many purposes. It can also be used to finance remodelling, repairs, and the upkeep of your family home.

Another advantage of this loan product is that you don’t move in or occupy that property asap as it can be used to purchase a fixer-upper and to do the keep up of an existing dwelling.

For optimum result, you can opt for a personal loan as these loans are unsecured and require less documents as compared to other variants. That is a good alternative as most home renovation loans will require a huge amount of equity to the property from borrowers.

If you are unsure whether to get married or buy your first house or both, start by talking to a license broker sooner than later. At Intellichoice Finance, we will walk you through on which option works best for your current situation without sacrificing anything. Talk to one of our trusted brokers and will guide you through the intricate process of debt management during this time of high uncertainty. Visit our website or schedule your appointment by calling 1300 55 10 45.