Sign up for a Low Interest Credit Card

Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Refinancers borrowing $250,000 or more could receive $3,288 cashback (T&Cs, eligibility and lending criteria apply).

Use a Stash of Cash

If you’ve been disciplined with your savings over the years then you may be lucky enough to have a stash of cash piled up to pay for your renovations. Cash is always your best option, as you avoid paying interest and amassing more debt. But renovations aren’t cheap, and with a complete bathroom makeover costing up to $20,000 it’s going to take years and years to save up enough dosh to turn your dream into reality. Realistically, cash will likely only cover smaller projects like a new paint job or fitting a flyscreen door.


  • No loans, no bank fees, no hefty interest rates


  • Save, save, save, every cent counts and it could take a decade to reach your savings goal by which stage you’ve decided you don’t want to renovate and would rather just sell!

A low interest credit card is another option to consider to fund any small home renovation (think minor changes around the home and inexpensive DIY projects). These cards generally have interest rates of 14% p.a. or less with most providers offering up to 55 days interest free. Like all types of credit cards, it’s important to pay the balance off in full and on time each month to avoid penalties and interest.


  • Easy to apply and be approved for
  • If you do your sums and stick to your budget you can finance the project without paying interest
  • Convenient when it comes to purchasing home renovation products online


  • Annual card fee of around $60 and if you’re forgetful and pay your bill after the due date you’ll be hit will a late payment fee and interest
  • There aren’t many rewards attached to a low interest credit card

Apply for a Personal Loan

If you know exactly how much your home renovation will cost, you can apply for a personal loan. Once approved you will receive a lump sum into your account and your renos can get underway. п»їп»їThere are a range of lenders out there who offer different types of personal loans, but at the end of the day it all comes down to which one suits your personal needs and financial situation.п»їп»їIf your renovation is of a medium size, then consider an unsecured personal loan. This loan offers smaller borrowing amounts from around $5000 up to $30,000 for a loan term of 1-7 years, but keep in mind interest rates can be high. п»їп»їFor larger scale projects like building a new bedroom or redesigning a kitchen compare secured personal loans – interest rates are slightly lower than unsecured loans, borrowing amounts are higher and terms are longer. Personal loans do have lower interest rates than credit cards but are generally higher than mortgages.


  • Interest rates can be fixed for the duration of the loan, a big plus when it comes to budgeting
  • Simple and cost-effective way to fund your home renovation


  • Beware of all the fees, from application to annual, make sure you read the fine print

Use Your Home’s Equity

If it’s large scale renovations you’re considering undertaking then tapping into the loan of your property is another option for financing the project. This is the most common method Australians use to fund home renovations.Equity is the difference between the bank’s valuation of your house and the amount you still owe on your mortgage. For example, if your home is valued at $700,000 and your mortgage is $450,000 then you have $250,000 equity in your home. The bank won’t be kind enough to loan you the full amount but generally speaking you will be able to borrow up to 80% of the value of the home. So hopefully you have enough equity built up in your home loan to finance those much needed renovations!