Renovation loans
From tear downs to spruce ups, here’s a quick guide to popular choices for financing your home renovation project.
Where to begin
Before you start drawing up plans, map out your costs and timeline.
Ways to finance your renovation
Home loan calculators & resources
I’d like to learn about…
Frequently Asked Questions
Still have questions:
Yes, if you’ve built up equity in your home, you may be able use it to increase your existing home loan to access funds for renovations.
A home loan top-up allows you to borrow more on your existing home loan, usually for smaller-scale renovations that don’t involve major structural changes.
A construction loan is designed for larger projects, where funds are released in stages as work progresses.
Before applying, it could be helpful to:
- Get quotes from builders and tradespeople so you know how much funding you’ll need.
- Check how much equity you have in your home (if refinancing).
- Consider whether a fixed or variable loan option suits your plans.
- Think about how the renovation will impact your home’s value.
- Understand the loan terms, interest rates, and any associated costs.
Our home lending specialists can help you plan your budget and explore your loan options.
The amount you can borrow depends on:
- the value of your home and available equity
- your income, expenditure and financial situation
- the size and cost of your renovation project
As well as materials and labour costs, make sure to budget for:
- council permits and approvals (if needed)
- temporary accommodation (if major renovation work means you need to move out)
- unexpected costs, such as delays or extra materials
- loan fees and interest if you’re borrowing to fund the renovation.
- loan fees, interest and any other associated costs.
Planning ahead can help you to estimate your loan requirements as accurately as possible.
Interest rates fluctuate based on economic conditions, inflation and monetary policy set by the RBA. Keeping an eye on RBA announcements and financial forecasts can help you make informed decisions about your loan.
The Reserve Bank of Australia (RBA) sets the cash rate, which influences interest rates offered by banks. When the cash rate changes:
- variable home loan rates may go up or down
- fixed home loan rates remain unchanged for the term of the fixed period, however, the financial institution may change their current rates for new borrowers. Keeping track of the RBA’s decisions can help you decide when to refinance or lock in a fixed rate.
100% obligation free advice
A Suncorp Bank home lending specialist can help you understand what renovation financing could be right for you.
Our experienced home lending team are happy to answer all your lending questions. We’ll reply within two hours or by the next business day.
Or call 13 11 75 Mon-Fri 8am-7pm and Sat 9am-2pm (AEST)
Australia and New Zealand Banking Group Limited (ABN 11 005 357 522) (ANZ) acquired Norfina Limited (ABN 66 010 831 722 (Suncorp Bank) on 31 July 2024. As Suncorp Bank is now part of the ANZ Group, it may be necessary to vary the terms of your Suncorp Bank product to match the terms of a similar ANZ product. This means you may end up with a product that has different terms and features to those you initially applied for. In any event, Suncorp Bank will provide you with a more detailed notice of these changes if the variation applies to your products. A full list of these changes for each product can be found at suncorpbank.com.au/variation. Please contact us if you have any questions or if there is a feature that is important to you.
Home Loan, Personal and Business Banking products are issued by Suncorp Bank (Norfina Limited ABN 66 010 831 722 AFSL No 229882 Australian Credit Licence 229882) to approved applicants only. Eligibility criteria, conditions, fees and charges apply and are available on request. Please read the relevant Product Information Document and terms and conditions before making any decisions about whether to acquire a product.
The information is intended to be of general nature only. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.
