There are 3 types of renovation loans that are available:
- Non-structural – This is for people who want to refurbish their homes but keep the original structure of the house
- Structural – This is arranged under a fixed price contract. This is more like a conventional construction loan, as approval is assessed on the end value of the property. Professionals are consulted and a valuation is completed to determine the figure.
- Owner Builders – You must have strong equity level in your property to access the funds required for this type of loan. This is because the bank takes on the risk that you are competent in time and on budget.