This article will explain why sometimes it doesn’t pay you to wait to apply for a Renovation Loan.
Please read on to discover why a lot of Australians are getting on with the job of renovating their home sooner, rather than later.
What is a renovation loan?
The purpose of a renovation loan is when a bank agrees to fund alterations and improvements to a home. Also known as remodelling, home improvement, home renovation and refurbishment loans, these loans are designed to assist you in completing the project, in order for you to enjoy the benefits whilst you are paying off the loan.
Depending on the size of the renovation, and the lender that we approach for finance, the lender may choose to call this a construction loan. It is called a construction loan simply because the lender will want to be in charge of the funding, as it is needed. Please see our Info page, Construction Loan for much more detailed information in relation to this type of loan. Please feel free to call a mortgage broker at Illawarra Mortgage Brokers to discuss your options in detail.
Why wait to renovate?
We have met many clients over the past 16 years, who have applied to refinance their homes to a more competitive lender, in order to save money. We have found that these same clients had a desire to pay a little bit off the home loan, with the purpose of redrawing to complete some remodelling or renovation work on the home. They had decided it would be better to wait, save some money, and then redraw the money to pay for these home improvements. Maybe it would be better not to wait.