Financing Your Renovation Project
If you would like to make some changes to your property that will improve your living space and add value to your home, it may benefit you to speak to a mortgage broker about finance options.
Whether you are spending a few thousand dollars to replace windows and paint walls or investing tens of thousands into a new top-of-the-line kitchen, a mortgage broker can help determine the most suitable loan choice for you.
If you have existing home loans, there are several loan options available including redraw facilities, loan top-ups and home equity loans.
A redraw facility allows you to access additional funds paid into your home loan if you need extra money, up to the amount of the additional repayments made and is suited most to smaller projects such as a new bathroom or sundeck.
A loan top-up allows you to increase the credit on your existing home loan to fund your renovation. Essentially tapping into the equity you have already built up in your property and extending some of that amount back to you, a loan-top up enables you to avoid the expenses associated with acquiring additional finance through other sources.
Equity loans allow you to access the equity in your property to fund your renovation project, subject to the amount of equity you have built up in your property and other serviceability criteria.
A mortgage broker can help to further explain the pros and cons of the above options and can help you determine the most appropriate course of action.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.