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Home Improvement Loans In Melbourne

Break Free Home Loans are a leading Melbourne mortgage broker, with over 20 years of industry experience. We provide lending solutions and advice tailored to your needs. We work closely with clients as trusted advisors and are accessible to clients when needed.

Our mortgage broking team are experts at identifying the needs of our clients. They then work at matching them with a home renovation loan that allows them to turn their ideas into reality. It doesn’t matter whether you are looking for a new bathroom, kitchen, or roof repair. We can help you find and qualify for a renovation loan that meets your needs. Call us today at 1800 300 777 for a free consultation. You won’t regret it!

What Is A Renovation Loan

Is your home beginning to show signs of its age? Would you like some much needed renovation work, but worry that it may be cost-prohibitive? Don’t worry, the lending experts at Break Free Home Loans are here to help! We can help find you a suitable renovation loan to help finance your home improvement project from start to finish.

A loan for renovation is provided by a bank or financial institution. It helps to cover the costs of repairs or updates to a property. The funds can be used to pay for things such as roof repairs, repainting services, bathroom renovations, and more. Borrowing money for renovations is a serious commitment, so it is important to find a loan you are comfortable with. By borrowing too little, homeowners risk not being able to pay for the renovation work. On the other hand, by borrowing too much money you could end up overpaying for your home improvement project. That’s why it is crucial to seek out the help of a lending expert to secure a suitable renovation loan.

Our expert mortgage brokers can help with this process. Initially, we help clients better understand their financial position and prepare the appropriate documentation. They then help them find and qualify for a home improvement loan that fully meets their needs. Our brokers are with you every step of the way to make sure this process is as smooth as possible. You know what to do if you’re thinking about renovating your home, or would like more information on renovation loans. Get in touch with us today at 1800 300 777.

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How Does It Work

Renovation loans help homeowners finance the refurbishment of an existing property. This type of loan can be used to finance a variety of home improvement projects, such as repairs, restorations, and additions. Homeowners are required to make regular repayments of the loan, at the agreed-upon rate. Renovation loans can be used to finance both small and large home improvement projects.

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Main Loan Types

There are several different loan types that homeowners can apply for to put towards renovation work. These include personal loans for renovation, home renovation loans, personal loans, and home equity loans. The different loan types can be used for the same renovation projects. However, which one best suits you is dependent on your individual circumstances, which should be discussed with a mortgage broker.

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What Can I Use It For

A home renovation loan can be used for a wide variety of projects. These include, but are not limited to: kitchen remodelling, bathroom renovations, roof repairs/replacement, window replacement, foundation repairs, and siding repair/replacement. It is a good idea to discuss your renovation needs with your mortgage broker. They can then help match you with the most appropriate loan type.

Home Improvement Loan Conditions

To successfully qualify for a renovation loan, applicants must prove they meet the set criteria. This can include:

– Being an Australian citizen or permanent resident

– Being over the age of 18 years

– Having a good credit history

– Owning the property being renovated (or having a small mortgage on it)

– Demonstrating that the renovations will add value to the property.

At Break Free Home Loans, we can help you with putting together your home improvement loan application. You are now one step closer to renovating your home!

Interest Rate

Renovation loans typically have an interest rate ranging from 0.75% to 3% higher than standard variable home loan rates. The actual increase depends on the size of your loan and how long you plan on taking to repay it. A standard renovation loan usually has an interest rate of between 6 – 18%. Shop around to find the best option.

Fixed

A fixed interest rate on a house renovation loan means your repayments won’t change for the life of the loan. This can provide peace of mind, particularly if you are on a tight budget. However, if interest rates rise during the life of your fixed rate home renovation loan, you could lose potential savings.

Variable

A variable renovation loan interest rate means that repayments could go up or down during the life of the loan. This option usually has a lower interest rate to begin with, which could save you money in the short term. However, you need to be comfortable with the idea that your repayments could increase if interest rates rise.

Fees

Home renovation loans will have fees for things like the application, valuation and legal expenses. Make sure you factor these expenses into your budget so there are no nasty surprises down the track. Our lending specialists can help you understand all the fees involved in taking out a home renovation loan.

Repayment Period

The repayment period for a renovation loan will depend upon the lender you choose and the amount you borrow. It’s important to remember that the longer the loan period is, the more interest you will pay over time. However, a longer loan period may also mean lower monthly repayments, which can make it easier to manage your finances.

How To Get Renovation Loans

When it comes to renovation loans how they work is pretty simple. Loan applicants must be able to prove that they have the financial ability to make regular repayments on the loan. They must also be able to prove that they can cover any other debts they may have. This proof can come in the form of payslips, tax returns, and bank statements.

Lenders will also require that applicants have a good credit history. A bad credit history may mean that you find it difficult to secure a renovation loan. However, our lending specialists are committed to helping you find a renovation loan that fully meets your needs. Get in touch today for a free consultation.

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Decide How Much To Borrow

One of the most important renovation loan decisions is deciding how much to borrow. If just one area of your property needs repair work a smaller loan, of say $5,000, may suit you. Larger scale projects will require more funds, of say $50,000. Thoroughly identify the scope of your project to determine exactly what funds are needed.
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Check Credit Score

The next step will be a credit score check. A good credit score is essential to securing a loan that meets your requirements. Remember to always pay your bills and credit card by their due date, to ensure your score isn’t detrimentally affected. If your credit score needs some work, there are renovation loans available for people with bad credit.
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Check Your Income

Loan applicants are required to provide proof of their income. This can come in the form of payslips, employment records, and tax returns. Lenders will use this information to calculate your debt-to-income ratio. That’s the amount of money you have coming in each month, compared to the amount you’re required to pay out.
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Apply

Congratulations on making it this far! The next step is the application process, where homeowners will fill out a formal loan application. This will include questions about your income, employment, debts, and financial obligations. The lender will also examine your credit score report. Prepare for this by collating relevant documentation into one folder, such as tax returns, payslips, and bank statements.

Will Renovating Add Value To My Property?

The short answer is yes, a renovation loan is a great way to add value to your property. By making your home more appealing, you’re also making it more valuable. This is great news if you’re looking to sell up in the future. This is because you will be able to command a higher price for your home. Even if you’re not planning on selling, a renovation still adds value by making your home more stable and accommodating.

In fact, many loan applicants are even looking at personal loans for renovation work. This can be an effective way to access the funds you need. A personal loan often allows applicants to borrow a larger sum of money. However, it’s important to remember that personal loans tend to have higher interest rates than home improvement loans.

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Choosing The Best Home Renovation Loan

Renovation loan applicants frequently ask for help choosing the best home renovation loan for their needs. Before our mortgage brokers can help with this they need to fully understand your needs and circumstances. What renovation work do you need conducted? What is your property’s current market value? How much can you afford to borrow? How much equity do you have in your home? These are all important questions that our team will need answers to.

Once they understand your needs, our expert lenders can help you choose the best renovation loan option for you. We’ll compare interest rates and fees, so you can be sure you’re getting a loan that best matches your needs.

If you’re thinking of renovating your home, then please contact us today on 1800 300 777 for a free consultation. Our team of experts will be more than happy to help you find the best loan solution for your property. Break Free Home Loans – because your home is worth it.

Do You Have Any Questions? We Are Ready To Answer

We hope that this article has answered all your loan for renovations questions. However, keep reading if you still have renovation financing questions that need answering. We have compiled a list of the most Frequently Asked Questions our lending experts receive. It is hoped that this will provide you with more clarity on the home improvement loan process. If not, please don’t hesitate to reach out and contact us for a personalised response.
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Frequently Asked Questions

How Much Can I Borrow With A Renovation Loan?

It largely depends upon your individual circumstances and the extent of renovation work required. Factors such as your credit score, employment history, and more will have an impact on how much you can borrow. The best way to find out is to speak with one of our renovation loan experts. They will assess your situation and help you find a loan that meets your requirements. Renovation loans typically start at $5,000 and go up to over $50,000. The loan amount you can secure will depend upon your individual circumstances.

If you have a bad credit score you may find it difficult to secure a larger renovation loan. However, Break Free Home Loans specialises in finding home improvement loans for people with bad credit. In short, to qualify for a larger renovation home loan, applicants must prove they can meet its repayment conditions.

Which Bank Is Best For Renovation Loan?

This is like asking which bank is best for a savings or credit card account. It largely depends upon the loan applicant’s individual needs and circumstances. Applicants in a financially stable position may prefer a major bank. Whereas people with bad credit may find a specialist lender offers them a better deal.

Some homeowners will want the renovation work done quickly, with the loan quickly repaid. There are banks that specialise in short-term renovation loans. Other homeowners will prefer the lower monthly repayments offered by a longer-term loan. Talk to one of our mortgage brokers to find out what bank is best for your renovation loan requirements. They can then work at assessing your circumstances. A professional recommendation about which bank is most likely to lend you the money you need will then be provided.

How To Get Renovation Loan In Melbourne?

Finding and qualifying for a renovation home loan should be conducted in a step-by-step manner. Identify your renovation needs. Collect all relevant documentation. Talk to a lending specialist, for help finding and qualifying for the renovation loan. By breaking the process down into simple steps, it becomes more manageable and achievable.

The team at Break Free Home Loans is proud to help people in Melbourne through the entire renovation loan process. We understand how important it is to have a stable, comfortable, and stylish home. That’s why we’re here to help you find a home improvement loan that fully fits your needs. Call us today at 1800 300 777 for a free consultation. With our help, your house will be looking like new in no time.

Contact our team

We love to hear from each and every one of you. Please feel free to reach out to us today!