For a lot of us, our home is our pride and joy, so it makes sense to want to give it a little upgrade every now and then. But with budgets getting tighter and renovation costs growing, many homeowners have begun considering financing to help kickstart their renos.

A home renovation loan is a type of personal loan that can be used to renovate a property. With a home renovation loan, you can put the funding toward redoing your kitchen, bathroom, living room, and anywhere else you think could do with a facelift.

But how do you apply for a renovation loan, and what factors should you consider before submitting your application? Read on to find out!

Applying for a renovation loan — what you need to consider

When it comes to bad credit home renovation loans, no two products are the same. That’s why it’s important to consider all factors before signing the dotted line and ensure you understand your loan obligations. Some of the things you will need to choose for your home renovation loan include:

The interest rate

Interest rates on home renovation loans can either be fixed or variable. A fixed interest rate is fixed for the duration of your loan, meaning your repayments will always be the same. On the other hand, a variable interest rate fluctuates depending on how the market moves. This means that your repayments can slightly shift as well.

While there is no ‘better’ rate, it’s important to select one that best fits your budgeting style. For instance, a fixed interest rate may be better suited if you prefer to keep things consistent and aren’t comfortable with a change in your repayments. Alternatively, a variable rate could be your best bet if you want to take advantage of potentially lower market rates.

The loan type

Home renovation loans can also be secured or unsecured. A secured home renovation loan asks for collateral, like a vehicle or other asset. This acts as insurance to the lender should you ever default on your repayments. An unsecured home renovation loan requires no security, though rates tend to be higher as this is a riskier product for the lender.

Your loan term

Depending on how much you want to borrow, you should opt for a loan term that keeps your repayments manageable. Though it’s worth noting that the longer your term, the more interest you will need to pay.

Other loan features and fees

Many home renovation loans, like the ones available with Finance One, offer handy features that can help pay your loan back faster. For instance, we allow borrowers to make extra contributions to their loans with zero penalties, allowing them to minimise their interest expenses and get debt-free faster.

Loan fees are another thing to keep in mind, as they can add up. Some common loan fees include application fees, annual fees, or monthly service fees.

How to apply for a home renovation loan with Finance One

Applying for a home renovation loan with Finance One is quick and easy. Plus, we won’t keep you waiting and can provide you with a lending decision within 48 hours!* Here’s how to get started:

• Meet our criteria — You must be 18 years old to apply and have a regular source of income.

• Tell us how much you want to borrow and for how long — Finance One offers home renovation loans of between $5,000 to $25,000,** with terms between three to four years.

• Submit important documents — You will need to provide a copy of your driver’s license, your latest three months of bank statements and your bank account details to be considered.

• Hear back in 48 hours* — While we don’t offer instant approval, you will receive a lending decision from us within 48 hours,* provided we receive all the necessary supporting documents.

*48 hour approvals are subject to satisfactory documentation being provided to assess the application.

**Secured Personal Loans between $5,000 – $25,000. Unsecured Personal Loans between $5,000 – $15,000.

Normal lending criteria apply. Fees and charges are payable. Terms and conditions apply.

Finance One means:
Fin One Pty Ltd – ABN: 80 139 719 903
Australian Credit Licence: 387528

Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent advice regarding your legal, financial, taxation or other needs, to check how the information relates to your particular circumstances. We do not accept responsibility for any loss arising from the use of, or reliance on, the information. All loan applications are subject to normal lending criteria. Fees and charges payable. Terms and conditions apply.