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Home Improvements and renovations

Home Improvements and renovations

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Construction Home Loans Canberra 


Looking to renovate your property but lacking the necessary funds?


Don’t worry! We’ve compiled five ways to finance your home renovation and bring your dream transformation to life. If you need assistance with any of these options, you can reach out to Ingenious Finance, a trusted mortgage broker who can help you navigate the process. Let’s explore these options along with some numerical examples:


  1. Equity Release/Top-up Home Loan: This is a popular choice for borrowing money to fund renovations. It involves borrowing against the current value of your home, excluding any value added by the renovations. If you own your home outright, you can typically borrow up to 80% of its value. Suppose your home is valued at $500,000, and you own it without any existing mortgage. In this case, with the help of Ingenious Finance, you could borrow up to $400,000 (80% of $500,000) for your renovation project.
  3. Construction Loan: If you’re planning a major transformation that requires substantial funding, a construction loan might be suitable. This type of loan allows you to spread the cost over an extended period. Lenders assess the value of your home after the renovations based on the building plans and typically allow you to borrow up to 90% of the projected end value. Suppose your home is estimated to be worth $600,000 after the renovation. With the assistance of Ingenious Finance, you could potentially borrow up to $540,000 (90% of $600,000).
  4. Line of Credit: A line of credit provides you with a revolving credit line that you can access up to your approved limit whenever needed. You only pay interest on the funds you use. With the guidance of Ingenious Finance, you can establish a line of credit tailored to your needs.
  5. Personal Loan: If your renovation plans involve minor changes, a personal loan could be a viable option. Personal loans usually have a maximum cap of around $60,000. Ingenious Finance can assist you in securing a personal loan with competitive interest rates and favorable terms.
  6. Credit Cards: Credit cards should be considered only for small renovation projects. Although interest rates on credit cards are usually higher than those on mortgages, the additional interest expenses may be lower than the establishment fees associated with other loan types. If you need advice on managing credit card financing, Ingenious Finance can provide expert guidance.

Remember, it’s crucial to ensure that your renovations add value to your home. Ideally, the added value should exceed the renovation costs. Focus on changes that appeal to potential buyers, as this can help you sell your house faster and at a higher price. For personalized assistance in finding the right financing option, contact Ingenious Finance, the trusted mortgage broker who can guide you through the process.

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