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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.

  1. Answer a few questions about your renovation
  2. We’ll suggest some loan options for you
  3. 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?

 

Tell us about your reno and we’ll suggest our loan options

Do you have a home loan on this property?

Will your reno involve structural changes (like an extension)?

How much are you looking to spend?

Your options

Based on what you've told us.

Increase current Westpac home loan

If you have equity in your property or land, you may be able to use it to ‘top up’.

 

At a glance:

  • Minimise interest by only drawing down money when you need it
  • Construction option available
  • Available on variable and fixed rate loans
  • Option to consolidate other debt

Personal loan

For smaller renovations, you could consider a separate personal loan.

 

At a glance:

  • Interest rate generally higher than home loan rate
  • No need to use home as security
Been making extra repayments?

Your Westpac home loan comes with a redraw facility that lets you tap into your ‘Available funds’ as and when you need them, with no redraw fee.

How to redraw extra repayments

Your option

Increase current Westpac home loan

If you have equity in your property or land, you may be able to use it to ‘top up’.

At a glance:

  • Minimise interest by only drawing down money when you need it
  • Construction option available
  • Available on variable and fixed rate loans
  • Option to consolidate other debt
Been making extra repayments?

Your Westpac home loan comes with a redraw facility that lets you tap into your ‘Available funds’ as and when you need them, with no redraw fee.

How to redraw extra repayments

Your option

Home loan: construction option

For larger or complex renos, you may need to add our construction loan option to any of our home loans.

At a glance:

  • Manage cash flow: funds in instalments, after each construction stage
  • Only pay interest on released funds
  • Required for structural changes, when using the property as security

Will your reno involve structural changes (like an extension)?

Your option

Home loan: construction option

For larger or complex renos, you may need to add our construction loan option to any of our home loans.

At a glance:

  • Manage cash flow: funds in instalments, after each construction stage
  • Only pay interest on released funds
  • Required for structural changes, when using the property as security

Will your reno involve structural changes (like an extension)?

How much are you looking to spend?

Your options

Based on what you've told us.

Switch to Westpac and increase

Refinance your current home loan to us, and borrow more.

 

At a glance:

  • Minimise interest by only drawing down money when you need it
  • Potential for lower interest rate
  • Option to consolidate other debt

Personal loan

For smaller renovations, you could consider a separate personal loan.

 

At a glance:

  • Interest rate generally higher than home loan rate
  • No need to use home as security

Your option

Switch to Westpac and increase

Refinance your current home loan to us, and borrow more.

At a glance:

  • Minimise interest by only drawing down money when you need it
  • Potential for lower interest rate
  • Option to consolidate other debt

Your option

Switch to Westpac and increase

If you're planning major renos to your property, you can include the costs in your total loan, and use our construction option.

At a glance:

  • Manage cash flow: funds in instalments, after each construction stage
  • Only pay interest on released funds
  • No fees for construction option or progress drawdown
  • Potential for lower interest rate
  • Option to consolidate other debt

Will your reno involve structural changes (like an extension)?

Your option

Switch to Westpac and increase

If you're planning major renos to your property, you can include the costs in your total loan, and use our construction option.

At a glance:

  • Manage cash flow: funds in instalments, after each construction stage
  • Only pay interest on released funds
  • No fees for construction option or progress drawdown
  • Potential for lower interest rate
  • Option to consolidate other debt

Will your reno involve structural changes (like an extension)?

How much are you looking to spend?

Your options

Based on what you've told us

Use equity in the property

You could borrow against equity in your property.

 

At a glance:

  • Minimise interest by only drawing down money when you need it
  • Construction option available
  • Option to consolidate other debt

Increase your loan on another property

If you have a Westpac home loan on another property, you may be able to increase that loan.

 

At a glance:

  • Minimise interest by only drawing down money when you need it
  • Construction option available
  • Option to consolidate other debt

Personal loan

For smaller renovations, you could consider a separate personal loan.

 

At a glance:

  • Interest rate generally higher than home loan rate
  • No need to use home as security

Your options

Based on what you've told us.

Use equity in the property

You could borrow against equity in your property.

 

At a glance:

  • Minimise interest by only drawing down money when you need it
  • Construction option available
  • Option to consolidate other debt

Increase your loan on another property

If you have a Westpac home loan on another property, you may be able to increase that loan.

 

At a glance:

  • Minimise interest by only drawing down money when you need it
  • Construction option available
  • Option to consolidate other debt

Your options

Based on what you've told us.

Home loan: construction option

For larger or complex renos, you may need to add our construction loan option to any of our home loans.

 

At a glance:

  • Manage cash flow: funds in instalments, after each construction stage
  • Only pay interest on released funds
  • Required for structural changes, when using the property as security

Increase your loan on another property

If you have a Westpac home loan on another property, you may be able to increase that loan.

 

At a glance:

  • Minimise interest by only drawing down money when you need it
  • Construction option available
  • Option to consolidate other debt

Will your reno involve structural changes (like an extension)?

Your options

Based on what you've told us.

Home loan: construction option

For larger or complex renos, you may need to add our construction loan option to any of our home loans.

 

At a glance:

  • Manage cash flow: funds in instalments, after each construction stage
  • Only pay interest on released funds
  • Required for structural changes, when using the property as security

Increase your loan on another property

If you have a Westpac home loan on another property, you may be able to increase that loan.

 

At a glance:

  • Minimise interest by only drawing down money when you need it
  • Construction option available
  • Option to consolidate other debt

Will your reno involve structural changes (like an extension)?

How much are you looking to spend?

Your option

Take out a larger home loan

You can include your reno costs in your total home loan amount.

At a glance:

  • Minimise interest by only drawing down money when you need it
  • Option to split your loan to keep your reno funds separate
  • Option to consolidate other debt

Your option

Take out a larger home loan

You can include your reno costs in your total home loan amount.

At a glance:

  • Minimise interest by only drawing down money when you need it
  • Option to split your loan to keep your reno funds separate
  • Option to consolidate other debt

Your option

Take out a larger home loan

If you're planning major renos to your property, you can include the costs in your total loan, and use our construction option.

At a glance:

  • Manage cash flow: funds in instalments, after each construction stage
  • Only pay interest on released funds
  • No fees for construction option or progress drawdown

Will your reno involve structural changes (like an extension)?

Your option

Take out a larger home loan

If you're planning major renos to your property, you can include the costs in your total loan, and use our construction option.

At a glance:

  • Manage cash flow: funds in instalments, after each construction stage
  • Only pay interest on released funds
  • No fees for construction option or progress drawdown

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.

 

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.

 

  1. 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.
  2. 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.
  3. 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.
  4. 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.

 

Calculate your usable equity

Mortgage repayment calculator

 

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:

 

 

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.

Key Fact Sheet for Home Loans


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.