Guide to home renovations

No matter the scale of your home renovation, it’s always worth planning your project first. Know what you want to achieve with your home renovation to get an accurate idea of your budget.

Consider the following questions before you embark on your project to be prepared from the get-go:

• Is renovating the right option? How much value will your renovation add? Is there a risk you'll over-capitalise? Would you be better off buying another house or building a home from scratch?
• What are your financial options? Know how you’ll fund the project. Do you have equity in your home? Are you redrawing on your mortgage? Or are you refinancing?
• What's your budget? Crunch the numbers with our helpful online calculator and set a solid budget. It’s also a good idea to include a 10% buffer to cover unexpected extras or surprises that pop up.
• What professionals will you hire? Are you going to be using an architect, draftsperson, or builder? Do your homework by looking at their previous work and perform some checks with regulatory bodies, like Master Builders Queensland.
• Is your property protected? – The right home and contents insurance can protect your property if it's undergoing some renovations.

Home Loan Calculators

Whichever way you’re planning on funding your renovation, it’s a great idea to work out the figures so you know you’ll stick to budget, know what you’ll pay if you increase your mortgage, and get an idea of what your home could be worth in the future. Try out our online calculators and get your results in under 60 seconds.

Depending on your financial situation, there are several options available to help you fund your home renovation. Our guide to financing your home renovation provides some great tips to help you out, with some finance options including:

• Using your home’s equity: Home equity refers to the difference between the market value of your house and any mortgage you owe. If your home has a high market valuation, you may have the opportunity to apply for additional funds.
• Redrawing on your mortgage: You may be able to access extra principal repayments you've made on your home loan. Not all loans have a redraw option, so we suggest talking to an RACQ lending specialist first.
• Financing through a line of credit: A line of credit will allow you to borrow money as you need it for your renovation journey, up to the maximum amount determined.
• Refinancing your home loan: Short on savings for your home renovation? It could be a good time to review your current home loan and see whether you could save money by refinancing.
• Applying for a home loan: Use our home loan repayment calculator to give you an idea of what monthly repayment options are available.

Once you have an idea of what your renovations are likely to cost and the amount of money you are able to borrow, it’s time to find the loan to suit your needs.