Want to get a loan for renovations? Many people want to understand how they can borrow money to renovate their home, or get a loan for renovations.
Fortunately with the help of a good mortgage broker or financial adviser, this can be an easy process.
Understanding the type of work you want to do
It’s firstly important to understand the type of work you want to do. For example, if you’re planning on re-doing a home’s kitchen, replacing the carpet and repainting parts of the house, this could be something that could be done for under $40,000. In this type of situation, we might call this ‘modernising’ the home, making the process a bit easier to apply for.
It is possible you may get asked for some specific $ figures on what it might cost to do these relatively basic renovations. Lenders might ask for quotes or estimates on what the work might cost.
More substantial work
Sometimes renovations can be more substantial. For example, if you’re thinking to extend your house, such as adding another bedroom, there may be additional costs associated with this. Typically you would work with a building expert to help ascertain these costs, and a mortgage broker can then help you.
Applying for the money
A mortgage broker or financial adviser can help you with this. They can discuss your options, such as to do this as a ‘standalone’ loan or to do this by including the costs in your mortgage or home loan. They can also answer questions such as:
– What documentation do you need to provide?
– What the cost or repayments would be?
– How long would you need to pay the money back over? E.g. 5 years, 10 years, 20 years?
– Costs and any early repayment charges
To discuss this in more detail, chat to a mortgage broker or financial adviser today.