Refinancing your assets to renovate a property is a significant decision that will hopefully improve your standard of living or add substantial value to your property.
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.
If you underestimate your budget, you run the risk of getting knocked back from your lender.
If the renovations end up costing a lot more than your estimated budget, this means you may have to reapply for the loan, which banks generally don't like. Be conservative with your projection. Eg if you think you need $100,000, it may be best to apply for $150,000 just in case, if you can afford it. The key is to stick to your budget.
The next step is to speak to us to determine which type of loan will suit your needs and objectives to make your grand renovation plans a reality.
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