How To Finance Your Renovation Project

by | Apr 28, 2021 | South East Auckland

Renovating your home not only increases the selling value but also improves the quality of your life by transforming the property into your dream home.

According to the Westpac NZ Construction Lending Specialist Francis Reade the most popular reasons for renovation include:

• – Cosmetic tidy ups before selling
• – Sprucing up the garden
• – Upgrading the kitchen
• – Building an extension for a growing family
• – Building an outdoor living area for entertaining
• – Adding an extra room for a home business
• – Building a minor dwelling to rent it out

There are several ways to finance your home or investment property renovation without breaking your bank account:

A Home Equity Line of Credit

If you have enough equity in your home (for example if you house is worth $1 million and your mortgage is $400,000) the bank would give you an overdraft-type of facility that has a mortgage interest rate and you spend it when you want to, providing there is no major structural alterations to the existing home.

A Home Equity or Home Improvement Loan

If you don’t have a lot of equity the bank would let you know the pre-approval amount they are willing to lend. The bank would control the loan. The customer would send the bank a copy of the contract and invoices for the renovation and the bank would approve the loan and pay the invoice directly to the contractor when required. Banks usually allow the owner to borrow up to 70 per cent of the property value. Renovation loans can cover a wide range of home improvements including driveways, extensions, landscaping, basic spruce ups like painting and floor coverings, swimming pools and more.

Apply for a Zero-interest Credit Card

A balance transfer credit card offers a low interest rate of as low as 0% p.a on balance transferred from another credit card for a fixed period. For smaller renovations a balance transfer could theoretically allow you to complete a home renovation project with no interest and essentially finance it for free. More information is available here: Compare zero interest credit cards

Helping You to Secure your Renovation Finance

Over the years Maintain To Profit South East Auckland has helped many clients to renovate their homes on credit. Our knowledge of the process and the valuable relationships we have with the financial advisors makes the process of obtaining the finance you need easier. Click the link below to find your local financial advisor and apply for finance:

Get Finance for Your Renovation Project

When you have an idea of what you want done contact our renovation team at Maintain To Profit for a free, no obligation assessment of your project cost to get a loan pre-approval.

All the best with your renovation project!