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There are a number of factors to consider in determining whether or not to renovate, but often one of the biggest obstacles is where to find the money. Refinancing with a cheap home loan is one option to help cover the costs of the improvements.

Factors to consider

• Major structural changes: Many lenders will not allow you to conduct renovations that involve major structural changes using your existing loan. Therefore, you may have to refinance to a construction loan. Most lenders include in their loan agreement a requirement to obtain approval prior to making such renovations. This is due to the fact that should you only get partway through a major renovation and something happens where you have to sell your home, it could end up with a lower market value that what it was at the start. But if you are refinancing, you can get either a standard loan or a construction loan depending on your needs. With the construction loan major renovations are fine as long as they are done by a registered builder.

• Cosmetic home improvements: For simple renovations, you may be able to use a standard home loan.  With that you can focus on refinancing with a loan that saves you the most money and also have extra money to cover the cost of the renovation.

• Make sure that your renovations are appropriate for your property: Just because you make improvements to the property, it does not necessarily mean the value will increase.

• Be careful not to overcapitalise. Make sure you calculate the expenses versus the expected value increase to ensure you are not overspending. Also, take a look at other properties in the area to see what they are selling for. Many home buyers may not be willing to pay above the area average, no matter

• The best renovations are the ones that significantly enhance your own lifestyle and take advantage of some natural feature of the property. An example would be a property with great views but no big windows or decks on that side of the house.

• Renovations which are low cost but significantly improve a home’s functionality and look are typically winners when it comes to adding value.

State Custodians Home Loans for Home Refinance
One of the most common loans used to refinance an existing loan is the
Standard Variable Offset Home Loan. It has very attractive interest rates and award winning features.  Click on the link for details. Should you have a smaller loan, a Breathe Easy Offset Home Loan might be best for you. It has no upfront or ongoing regular fees, but a slightly higher interest rate. Both have the same features when it comes to function. Give us a call and we will help you work out which is best in your situation.