Renovation finance, sized to the job you are actually doing.

It depends on the size of the job and how quickly you intend to repay it. Secured home lending is normally priced well below unsecured personal lending, so on rate alone the mortgage usually wins. The catch is the term: a modest job added to a loan with decades left is repaid very slowly, and the total interest over that time can exceed a short personal loan at a much higher rate. A personal loan forces the discipline of an end date. If you want the cheaper rate without the long tail, ask us about putting the renovation portion on its own shorter split, or setting your own faster repayment schedule against it.

Broadly, anything that changes how the building stands up, what shape it is, or where the services run. Removing or moving a load-bearing wall, adding a room or a storey, re-roofing, underpinning, relocating plumbing or the switchboard. Cosmetic work leaves all of that alone — paint, floors, a new kitchen in the same footprint, landscaping. The distinction matters because it usually decides both whether you need approval and whether funds can be released as a lump sum or have to come in stages. If you are not sure which side your job sits on, describe it to us and we will tell you how it is likely to be treated.

Often for structural work, rarely for purely cosmetic work, but the rules are set by your state or territory and your local council rather than by any national standard. Some jobs go through a full development application; others qualify for a faster complying development pathway assessed by a certifier. Your council is the authority on your particular job, and it is worth asking them directly rather than relying on what a neighbour did or what a tradesperson assumes. Where approval is required, having it in place makes the finance considerably more straightforward.

In stages, against work that has been completed. The contract is broken into a program of works, and as each stage finishes the builder invoices, the lender arranges an inspection or valuation to confirm the work is done, and that portion of the funds is released. You generally pay interest only on what has been drawn so far, so the repayment climbs as the build progresses rather than starting at the full amount. It is more administration than a lump sum, and stages need organising in advance so releases do not hold up the site.

Enough that a genuine surprise does not stop the job. We will not put a figure on it for you, because the right amount depends on the age and condition of the building and how much of it you are opening up — an older home with original wiring and plumbing carries far more unknowns than a recent build getting a new kitchen. What we would say firmly is that the contingency should be decided before you start, kept separate from the scope, and never quietly spent on upgrades. Running out of money mid-build is how a well-priced loan turns into an expensive credit card balance.

Not necessarily, and it is worth going in with that clearly in mind. Some work is well regarded by the market — usually bringing a dated kitchen or bathroom up to what buyers in that street expect. Other spending adds much less than it cost, particularly highly personal choices, or finishes well above what the suburb supports. Over-capitalising is a real risk and an easy one to walk into. If you are renovating because you want to live in a better home, that is a good enough reason on its own. If the plan depends on the valuation rising by what you spent, treat that assumption carefully, because a valuer forms their own independent view.

You can, subject to the rules where you live. Above a certain value of work, states generally require an owner-builder permit and often a short course before issuing one, so check with the building authority in your own state or territory. The trade-off on the finance side is that owner-building removes the fixed-price contract, the program of works and the licensed accountable party that staged lending is built around, which narrows the options available. That is a reason to establish what is available before you commit, not necessarily a reason to abandon the idea.

Sometimes, and it is a reasonable thing to look at once the job is complete and any approvals are finalised. It generally means a fresh valuation and a fresh assessment of your income and commitments, and it depends on the value actually being there. What it is not is a way to fund the renovation itself — the money is needed while the work is happening, not afterward. If you are counting on a post-renovation revaluation to make the numbers work, tell us early so we can look at whether the plan holds up before you commit to the build.