Capital Connections Finance offers a variety of renovation loan options to suit your individual needs and the scope of your renovation project. Whether you’re planning minor cosmetic upgrades or a major overhaul, we’ll guide you through the process and help you secure the financing you need to bring your vision to life.
The amount you can borrow for your renovation depends on various factors like the type and scale of renovation, whether you’re hiring a licensed builder, and your financial standing.
For minor renovations with a licensed builder, you might borrow up to 95% of the purchase price plus renovation costs. Without a builder, it’s usually up to 90%. Major renovations can get you up to 80% financing, or 95% with a licensed builder. For knockdown/rebuild scenarios, it varies based on builder involvement and land value.
If you’re not renovating, expect up to 80% of the property value. Low doc and guarantor options exist, and we offer competitive discounts. Contact us for a free assessment to understand your specific borrowing capacity.
Regarding loan disbursement, smaller jobs under $30,000 are typically paid upon completion, while larger projects involve progress payments with a final valuation. Apply for your loan well in advance, especially if you have limited equity or rely on the final property valuation.
Banks are cautious with renovation loans due to the risk of unfinished projects or misuse of funds, often preferring licensed builders with Home Building Compensation insurance.
Renovating is often cheaper than buying new, allows customization, and can boost property value. It’s popular with home buyers who want to renovate immediately but lack equity. Popular renovations include landscaping, cosmetic upgrades, kitchen/bathroom remodels, outdoor areas, pools, and extensions. However, risks include running out of money or underestimating costs. To mitigate this, research properties in good areas needing minor work, get council approvals, prioritize value-adding renovations if selling soon, and consult a mortgage broker early on.
Our team at Capital Connections Finance specialises in renovation loans, so contact us today to start your renovation journey.