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

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.

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.