Use the equity in your home to complete your dream renovations, and add value to your home at the same time.
Renovating is increasingly becoming an attractive option, both for owner occupied and investment properties. Whether it's $10,000 for some landscaping and a patio, or $1,000,000 for major renovations to your Hamilton mansion, we all need money to complete our renovations.
Given the property boom that accured during the previous decade, many Australian renovators are choosing to use the equity in their homes to finance their renovations.
Don't think you have enough equity for renovations? Many lenders will allow you to borrow against the 'on completion' value of your property. How does it work? Here's an example:
Mark and Sandy have a property worth $400,000 with a mortgage of $340,000. They want to perform renovations which will cost them $100,000 but think they don't have sufficient equity to complete the renovations.
We provide the valuer with copies of the plans for the renovations, and the valuer provides a report stating that once the renovations have been completed, the property will be valued at $550,000. Most lenders will be satisfied with the 'on completion' value of $550,000 and will lend accordingly.
So in the end, Mark and Sandy end up with a mortgage of $440,000 and a house valued at $550,000. This has improved their LVR (loan to value ratio) from 85% down to 80% and they have the renovations they wanted.
No matter how minor or major your renovations are, we can help you improve your castle.
