Home Renovation Loan Australia - How to Finance Your Reno in 2026

General information only — not financial advice. This content is intended as educational guidance. Consult a qualified financial adviser, mortgage broker, or legal professional before making financial decisions. See our full disclaimer.

Financing a home renovation in Australia involves choosing between redraw, a home equity top-up, refinancing, a construction loan, or a personal loan - each suited to different renovation sizes and equity levels.

Frequently Asked Questions

Can I add renovation costs to my existing mortgage?

Yes - through a mortgage top-up or equity loan. Your lender assesses whether you have sufficient equity (typically requiring a post-renovation LVR of 80% or less) and whether you can service the additional debt. The process takes 2–4 weeks and involves a property valuation.

Should I use a personal loan or my mortgage for renovations?

For renovations over $30,000, home loan-backed options (redraw, equity top-up) almost always cost less - home loan rates are typically 4–8 percentage points lower than personal loan rates.

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