Renovating your existing home rather than moving may prove to be a more cost effective way to improve your lifestyle. It can also be personally satisfying completing a successful renovation but there are also plenty of pitfalls to avoid in the renovation process.

Refinancing isn’t as straightforward as you might expect. The type of renovation proposed goes a long way to dictating the loan required. If the wrong loan is chosen, you could be left with a pile of unexpected debt.

Know your budget

Before considering refinancing, you need to have a clear idea of your budget. Firstly take the time to plan your renovation before you start any work. Make sure you have reliable estimates of all of the costs. If you underestimate your budget, you run the risk of facing complications with the financing. Always factor in a contingency of 20% so you that don't run out of money. If you're using a builder try to fix the contract price for an agreed result. If you don't use all the funds they can be paid back onto the loan or kept in an offset account avoiding unnecessary interest costs.

The next step is to speak to us to determine which loan will suit your needs and objectives.