Back to: Upgrade or move home

 

Are you looking to renovate your home but don't have enough money to finance the renovation? Or maybe you're hoping to build your dream home?

We can help. We have a range of flexible finance options that can help you start renovating or building sooner.

Renovations

Renovators have the following options for funding their home improvements.

Top up
The 'Top-up' feature allows you to extend the credit limit on your existing loan without applying for a new one saving you time and money. Applying for a Top-up on your existing loan is easy. Just give us a call 131 900 or visit your local branch.

Redraw
Is also available on many of our loan products. It allows you to access funds from excess payments that you have made to your loan. The 'Redraw' feature allows you to access any extra money you've built up in your home loan, for any purpose at any time. There are various ways you can make withdrawals (redraws) such as through branches, Telephone Banking and Internet Banking.

Equity Access Loan
An Equity Access Loan lets you use the equity in your property as a source of funds. It helps you make the most of the equity that you have in your property to achieve your plans for the future faster. With an Equity Access Loan, you can access up to 80% of the value of your property to renovate, make investments or to achieve other plans that are important to you. The loan is suitable if you need to borrow an amount from $25,000. The Equity Access Loan offers flexibility in timing and size of repayments making it perfect for renovators.


Construction

If you are constructing a property from scratch or undertaking major renovations you could apply for a new home loan with a progressive drawdown option.

Progressive Drawdown
Progressive drawdown is available on many of our loan products where you are building or extensively renovating your home. This allows you to pay the builder for the construction/renovation as the building work reaches each stage of completion. You also need to be comfortable that the works have been completed to your satisfaction prior to the Bank releasing any loan proceeds.

Builder's Valuation
A builder's valuation is usually required for construction/renovation loans to:

• Provide an 'as is' market value assessment
• Provide a 'to be erected' market value assessment of the property on completion of the renovation/construction
• Assist in determining the approved loan amount

Periodic inspections during construction may also apply if you are undertaking a larger project.

Fees and charges may apply.

Applying for a new loan? Contact one of our Westpac Home Loan Experts; we'll help find the right solution for your needs.


Helpful Hints:
Planning is essential. Develop a long term plan that takes your goals, budget and life into account. Ask yourself questions such as can I afford this? Will my future plans (e.g having children) affect my renovation?

Don't over-capitalise. If you spend too much on your renovation in proportion to properties in your local area it might be difficult to recover your investment.

Choose your builders or tradespeople carefully. Make sure they are licensed to do the work. Also, ask for references and don't hesitate to shop around for the best deal.

Make sure you consult with local government authorities to get information on regulations and requirements in your local area.

Possible Scenarios
Scenario 1
Lisa and Robert are looking to install a new kitchen in their investment property. They have a Rocket Investment Loan which they have made several extra repayments on. What options do they have?

Because they have made extra repayments, Lisa and Robert could redraw this amount through their redraw facility to fund their renovations. This saves them time and they can even use phone or internet banking to redraw money without having to obtain a separate loan.

Scenario 2
Agatha and Ben want to knock down and rebuild the home they are going to buy. What options do they have?

A construction loan with a progressive drawdown feature, such as a Rocket Repay Home Loan, may be a suitable option for Agatha and Ben. This would allow them to draw on their funds at different stages of construction.

Scenario 3
Janice has a First Option Home Loan. She has always wanted a swimming pool but has been unable to save enough money for it. How can she make her renovation dream come true?

Janice could apply for a top-up of her existing loan. This could save her time and money because she won't have to apply for a new loan.

Scenario 4
Tim and Michelle have paid 30% off their Premium Option Home Loan. They now want to renovate their home. What options do they have?

Tim and Michelle could apply for an Equity Access Loan and use the equity in their home to finance their renovation. Alternatively, they could use the redraw or top-up features as sources of funds.