Home renovation loans
See which lenders will give you the best home renovation personal loan. Instant online results.
This is a totally free process and will not affect your credit rating.
Here's how easy it is
One smart-form
Simple & quick, we narrow down the lenders you're eligible for.
Personalised rates
See multiple lender rates you actually qualify for, all at once.
Checkout with confidence
After easily comparing, select the lender who best suits you.
Our mission
Money.com.au (Money) is on a mission to enable Australian consumers to enjoy an online shopping experience for financial products, starting with personal loans.
We believe that by providing you with fair & transparent choice, we will achieve our mission, and help more Australians get better deals (more for your money).
Putting you first means:
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We only show you loans you qualify for, ranked by the lowest repayment
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We show you “apples with apples” loan comparisons (by simplifying & standardising information)
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We do not accept paid endorsements or promote lenders based on commission.
Compare personal loan rates
In the table below, the repayments are based on a $30,000 loan repaid over 5 years for an individual with excellent credit. To get your personalised rate for different amounts and terms, click 'Get your rate'.
Loan Terms |
Interest Rates (APR) |
Comparison Rates (APR) |
Upfront Fees |
Ongoing Fees (pw) |
Repayments (pw) |
Total Cost |
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|---|---|---|---|---|---|---|---|---|
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18 - 84 months | 4.95% - 17.95% | 4.95% - 17.95% | $0 | $0 | $130 | $33,800 | Get your rate |
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6 - 84 months | 6.39% - 17.89% | 6.39% - 20.41% | $0 | $0 | $135 | $35,100 | Get your rate |
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24 - 60 months | 6.99% - 19.99% | 6.99% - 21.56% | From $0 | $0 | $137 | $35,620 | Get your rate |
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36 - 84 months | 6.99% - 19.95% | 7.55% - 20.89% | From $475 | $0 | $139 | $36,140 | Get your rate |
Representative example 1: Based on a loan with Now Finance for an amount of $30,000 over 5 years a borrower with an excellent credit history can expect to repay a total of $33,800. This represents a comparison rate of 4.95% p.a. and includes all interest and fees (there are no fees with Now Finance for a borrower with excellent credit) included in your loan repayments over the life of your loan. Interest rates vary subject to a full credit assessment.
Representative example 2: Based on a loan with a poor credit history with Wisr for a loan amount of $30,000 over 5 years a borrower can expect to repay a total of $49,435. This represents a comparison rate of 20.89% p.a. and includes all interest and fees (Fee breakdown - upfront fees of $525 and no ongoing fees) included in your loan repayments over the life of your loan. Interest rates vary subject to a full credit assessment.
Warning: For Personal Loans, the comparison rate is based on a $30,000 unsecured loan over 5 years; This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Key features of a home renovation loan:
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Borrow from $2,000 to $75,000
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Fixed or variable interest rates
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Repayments to suit your budget
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Terms from 1 to 7 years (most common is 3 years)
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Secured & unsecured options
Who is eligible for a home renovation loan?
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Australian Permanent Residents (& some visa holders)
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Must be over the age of 18
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Earn a minimum of $25,000 a year
Learn more about home renovation loans
The cost of renovating
Renovations, alterations and additions to your home will vary in cost depending on the scope of your project, the cost of labour and materials, and other facts. Before committing to a renovation loan, you will need to accurately scope the cost of your renovations.
Factors that can influence the cost of your project include:
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The size of your home and the number of rooms
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How much of your home you plan to renovate
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The cost of materials (budget to premium)
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The cost of labour and whether you plan to do any work yourself
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The type of rooms you plan to renovate (kitchens and bathrooms tend to cost more than bedrooms and outdoor areas)
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How invasive your renovations will be (structural renovations are generally more time-consuming and costly than minor cosmetic alterations)
In a recent release addressing home renovation loan costs by Australian lender, SocietyOne, which covers how to financially prepare for your next renovation, the lender details the average price of the most commonly renovated areas of a home.
Money Tip: Properly scoping your renovation project and getting comparable quotes from multiple contractors before committing to a loan is the first step toward keeping your renovations within budget.
Personal loans for home renovation
Best used for: home renovations under $50,000
Personal loans can be a simple, straightforward way to fund renovations. You can use the Money.com.au smart form to compare your options for home renovation loans in less than 5 minutes - see how much you can borrow and which lenders you qualify with, completely free of charge.
Home renovation personal loans have shorter terms than a mortgage or larger loan, with terms generally offered between three and seven years. Borrowing limits range from $2,000 to $75,000, and they may also have higher interest rates than home loans and construction loans.
Compare your available options before applying to determine which type of loan is most suitable for your project budget and personal financial circumstances.
Pros:
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Quick, easy application
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Simple loan structure
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May have low fees
Construction loans for home renovations
Best used for: Large renovations over $150,000
Construction loans are designed to cover the expenses you incur when building or substantially renovating your home. They’re structured a little differently than regular home loans to make the process as simple as possible.
To apply, you’ll usually need a signed all-inclusive contract with a builder, including quotes and plans. After your lender approves your application, they will generally pay out funds in stages as needed to complete the construction. These payments will often be made directly to your builder.
During the building phase, construction loan repayments will generally only require you to cover interest charges, before reverting to a standard principal-and-interest mortgage once construction is complete.
It’s important to note that these loans are not built for small renovations and often have loan minimums of $150,000.
Pros:
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Designed specifically for large renovations
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High loan limit ideal for large renovations
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Interest-only during the construction period
How to qualify and apply
Every lender has different eligibility criteria for a home renovation loan, but most basic qualifying criteria requires you to be:
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Over the age of 18; and
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An Australian citizen or permanent resident; and
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Employed, with a regular source of income that you can demonstrate
The most important factor when gaining approval for a home renovation loan is to demonstrate your ability to repay the full loan amount to your lender.
If you meet the basic eligibility for a personal loan, you will then need to compare lenders and assess their individual approval criteria.
To get apply for a home renovation loan you will need to:
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Submit an application to a lender
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Meet the lender’s approval criteria
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Sign a loan contract and agree to the terms of the loan
You will need to provide personal identification and financial documents (usually your bank statements or recent payslips), as lenders will need to assess your financial stability and determine if you can service the loan amount.
Money Tip: It’s a good idea to leave an extra 10% in the budget just in case your renovations end up costing more than you expect.
Summary
Renovations can be expensive. Before you apply for a loan, estimate the scope of your project and get multiple quotes from various contractors.
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Refinancing and equity release: generally used if you have excess equity in your home.
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Personal loan: generally used for small, low- to mid-cost renovations under $50,000.
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Construction loan: generally used for large renovations over $150,000 in value.
Picking the right option could save you thousands of dollars in interest and fees so before you even pick up a hammer it’s important that you give serious thought to how you’ll fund your renovations.
How much money do you need?
This is a totally free process and will not affect your credit rating.
