What is Construction Loan?
Home renovations are often expensive. Whether it’s a new kitchen, bathroom or an extension, it’s likely you’ll need to borrow money. So here are some ways to finance that renovation.
Your finance choices
When it comes to financing a home renovation your main options are to:
- Refinance your existing loan
- Use the equity in your home
- Redraw from your current loan
- Use a line of credit
- Consider a building and construction loan.
- Apply for a personal loan, or
The option you choose will depend on your particular circumstances, but some lenders will require you to take out a particular type of loan for a renovation. So it’s important to look at the pros and cons of each option, and also to consult your mortgage specialist upfront about the right finance option for you, so that you can achieve your renovation sooner.
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