
Home renovation loan
Renovating your home – where to start
From simple makeovers to major structural work, we're here to help you figure out your plans and explore how best to finance them.
- Answer a few questions about your renovation
- We’ll suggest some loan options for you
- Use our handy tools, articles, tips and FAQs
Not sure whether you want to renovate?
Should you renovate your home to rent out or live in – or sell and move somewhere better?
Do you have a home loan on this property?
Guides and tools for renovating
Frequently asked questions
If you’ve registered for redraw and are ahead on repayments, you can tap into your Available funds whenever you need.
Westpac App – tap your home loan account and tap Transfer to move funds to a Westpac account or Pay to transfer to another bank account.
Haven’t set up your redraw? Simply login to online banking to submit your request or print, sign and email a scanned copy (or hi-resolution photo) of our Redraw Authority form (PDF 66KB) to loanmaintenance@mortgage.westpac.com.au (no need to include a stamp from the bank). Redraw is subject to approval.
Your home loan borrowing limit
The amount we can lend you depends on a few things, like your financial situation, credit limits and your usable equity.
- Use our maximum home loan calculator
- While equity is the proportion of your property you currently own, ‘usable equity’ is the amount that you can actually access to fund your reno – calculate your usable equity
- Want to borrow more than your usable equity amount? You may need to pay Lenders Mortgage Insurance (LMI) to insure us against any losses on your loan – estimate your LMI
No matter how much you plan, unexpected costs and delays may be inevitable. So it helps to know the process, regulations and guides before you start.
Generally, there are four stages, and depending on your DIY comfort level, you can bring in experts along the way. Let’s say you’re building a deck – you may be able to build the whole thing yourself. But for an extension, you’ll probably need council approval, designers and tradies.
- Design. Gather photo ideas for inspiration. You can draw up basic plans yourself, or hire an architect/designer if there are structural changes. A building surveyor can check your property’s boundary.
- Approvals. Before you do any work, check the regulations with your local council and body corporate, review your building insurance and consider consulting with neighbours.
- Building. You can DIY (remember ‘measure twice cut once’), or hire builders and check their work along the way. For gas, plumbing and electrical work you'll need licensed tradies.
- Certifying. A private or council building inspector may need to check the work.
For more tips, visit the Australian Government’s home renovation page.
Equity is the proportion of your current property that you actually own. And if you’re looking to renovate by increasing your current mortgage – or taking out a separate mortgage with different features – you may be able to tap into your equity as security.
Home loan advantages
- Home loans are secured loans, which generally come with lower interest rates than personal loans or credit cards
- Consolidating all your debt under one loan balance can offer cost savings on ongoing fees.
- Already have an existing home loan with us? There’s no top up fee.
- Borrow as little as $10k, or top up any amount.
- Option to set up a new loan with a different loan term and features, like our construction option or an offset account.
- Increase your home’s value or rental income.
- Choose weekly, fortnightly or monthly repayments.
Home loan considerations
- Your home’s used as security, unlike an unsecured personal loan.
- Mortgage terms can be up to 30 years, so you could end up spreading your renovation cost over decades and paying more interest. Tip: when comparing interest rates with a personal loan amount, plan to repay your home improvements within a similar loan term.
Home makeovers can be costly – but your home improvement loan doesn't have to be. With Westpac there's:
- No home loan increase fee
- No fee to add our construction option to your current or new home loan (external property valuer fees may apply)
- No fee to redraw from your home loan1.
It depends on several things, like the type of work you’re doing, state laws, local council rules, if the home’s heritage listed, and whether you own the land or it’s under body corporate.
Tip: before work starts, understand what’s common property and seek permission from your local council and body corporate, or you may need to undo your entire renovation.
Cosmetic changes can include:
- Painting the interior
- Laying new carpet
- Installing built-ins
Minor renos can include (check with strata):
- Kitchen renovation
- Changing internal walls
- Installing wooden floors
- Waterproofing the bathroom (may need Owners Corporation AGM approval)
- Installing solar and ceiling insulation
Major renos can include (check with council/Owners Corporation AGM)
- Structural changes to load-bearing walls or posts
- Adding a room
- Adding a large, covered deck
- Adding an outside access ramp
- Granny flat
A variable home loan
Your renovation funds will go into your nominated account.
You can minimise interest by parking funds into your home loan account and drawing down money for your renovation only as you need it. That way you’ll only pay interest on the amount you draw down (just like redrawing).
Or, if you choose our variable loan with offset, you can park your new funds in your offset account, meaning you won’t be paying interest on that amount.
A fixed home loan
Your renovation funds will go into your nominated account.
To minimise interest, you can park up to $30k in your fixed home loan account (over $30k can attract break costs) and only draw down money for your renovation only as you need it.
More on home improvement loans
Things you should know
Conditions, credit criteria, fees and charges apply. Residential lending is not available for Non-Australian Resident borrowers.
This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information and if necessary, seek appropriate professional advice. This includes any tax consequences arising from any promotions for investors and customers should seek independent, professional tax advice on any taxation matters before making a decision based on this information.
1Break costs on fixed loan prepayments and switching: customers can make total prepayments of up to $30,000 (cumulative) for fixed loans, without costs or fees applying. You may incur a break cost and administration fee if your prepayments exceed this threshold, or if at any time before the end of a fixed rate period you switch to another product, interest rate (fixed or variable) or repayment type.
Credit provided by Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.