Finance for renovations

Discussion in 'Renovation & Home Improvement' started by Alex123711, 22nd Mar, 2018.

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  1. Alex123711

    Alex123711 Well-Known Member

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    How do most people go about this? e.g if buying a house with plans to renovate are you able to get a higher loan? Or have to finance the renovation with cash?
     
    Alex123711, 22nd Mar, 2018
    #1
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Depends - are they structural? If they are and you have a fixed price building contract you can finance it but just for general paint and carpet type of stuff, you have to fund with cash or borrow against another property.
     
    Jess Peletier, 22nd Mar, 2018
    #2
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    depending on a few things, like servicing LVR and lender some of our clients have been able to pull 50 to 150 k not long after purchase.

    What is the budget for the reno, and the lvr ?

    ta
    rolf
     
    Rolf Latham, 22nd Mar, 2018
    #3
  4. Username86

    Username86 Well-Known Member

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    Hi @Jess Peletier is it possible to finance bigger cosmetic renos that have a fixed contract with a builder?
     
    Username86, 23rd Mar, 2018
    #4
  5. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    I don’t think you’d use a builder for cosmetic Reno’s - more a project manger.
    My thought is no, but if the cost was really significant possibly? That would be something I’d shop to lenders before submitting. If it was worded well in the application and the valuation came in on price, I don’t see why not.
     
    Jess Peletier, 23rd Mar, 2018
    #5
  6. Username86

    Username86 Well-Known Member

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    Thanks!
     
    Username86, 24th Mar, 2018
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  7. Financial Advisers AU

    Financial Advisers AU Member

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    Depends on your initial budgets for the reno. I would expect to look at your numbers and work your way from there.
     
    Financial Advisers AU, 25th Jun, 2018
    #7