Renovations in 2016 – knowing your finance options
Are you planning for an expansion of your current home in the New Year?
With rampant house price growth in Auckland, more and more home owners are not trading up but are renovating their current houses. The challenge with renovations is knowing the different finance options while maintaining a budget. A right home loan for your renovation project will make your home more liveable and also increase the home’s value when the project is completed.
There are many finance options available for your next renovation project:
Equity Loans: If you already own your home and have considerable equity, then you can use this equity to fund the renovation project. The amount you can borrow is based on the amount of equity one has in their property – but is usually a maximum of 80% of the property value.
Loan Top Up’s: These loans allow you to increase the credit on your existing loan. These are more suitable for smaller or medium projects like renovating a kitchen or a bathroom.
Refinance your loan: When funding major renovations, refinancing the mortgage will help you spread the repayments over a longer period at mortgage interest rates which are usually lower than credit cards and personal loan rates.
All Construction Loans are subject to current lending criteria. To discuss the options that will be suitable for your next renovation project, talk to any of the Loan Market Waitakere Mortgage Advisor today.