Refinance Options For Home Renovations
Every so often, homeowners choose to improve their property by way of renovations or add-ons.
While these projects are a great way to add value to real estate, they can be challenging due to the building chaos that ensues, as well as the financial demands.
Fortunately, there are many competitive refinance options for existing home loans to help you budget effectively for your task.
Your mortgage broker can help to explain the various possibilities and how each one will work for your particular situation, but there are three general options that may suit.
A redraw facility is a flexible choice as it 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.
Loan top-ups essentially tap into the equity you have already built up in your home and allow you to increase the credit on your existing property loan to fund your renovation.
Equity loans allow you to access the equity in your property to fund your renovation project and are also subject to the amount of existing equity you have built up on your real estate.
Your choice will likely depend on the size of the project and how much you wish to spend.