Home renovations blog: Refinancing, renovations and a line of credit

By the resi financial blog team, 22 May 2014

Using a line of credit for renovations

Home renovations blog: Refinancing, renovations and a line of credit

If you're wondering how to make your home pop with a renovation, a refinance loan is one way to achieve this. You might think about refinancing in order to obtain a great loan feature, such as a line of credit.

What kind of work should I do?

It's no secret that Australian homeowners love to renovate - a sentiment that echoes with Johanna Griggs, a judge on the ever-popular television show House Rules.

"Renovating is ridiculously good fun," Ms Griggs wrote on Yahoo!7's television blog.

Whether you're planning to replace dated carpet, install new bathroom fittings or paint your living room walls a vivacious new shade, there's no shortage of ways you can improve your home's aesthetics, with a line of credit making the financing much easier.

Think about which rooms you spend the most time in and consider working on these spaces initially. Updating the walls and flooring in your living space can instantly transform it, with shades such as cream, slate and tangerine pairing well together.

Neutral shades add sophistication to a space, while bolder, brighter accents add personality.

How can I get a line of credit?

If you've built up sufficient equity in your home loan, you might be eligible for a line of credit when you choose to refinance.

This can be hugely beneficial when it comes to paying for renovations around the home. Anything major may need a construction loan, particularly if you're going to make significant structural changes, such as knocking down a wall or adding an extra bedroom.

However, there's nothing wrong with making a few changes around your home by tapping into your line of credit. From a freshened-up bathroom to a glossier kitchen, there are plenty of cheeky tweaks to add value to your property and make it even more liveable.

 

Categories: Refinance, Renovation