Home > Need a loan for home improvement? Here’s everything you need to know about renovation loans
Need a loan for home improvement? Here’s everything you need to know about renovation loans
Is a renovation loan a good idea?
If you’re considering a loan for home improvement, then there are a few things you’ll need to weigh up before you apply for finance. Your home is an investment, and a personal loan for home improvement could help you significantly increase its value. Yet, how much you borrow and how you utilise your funding will ultimately have a big impact on your property’s value. In short – if you’re going to put in the hard work, you want to know it’ll pay off in the long run!
Fortunately, in this guide, we’ll run you through everything you need to know about home improvement loans. At Jacaranda Finance we offer a range of personal loan options that can be used to help you fund all kinds of renovation projects. So whether you’ve lived in your home for decades or are looking to buy a fixer-upper, keep reading to see how we could help you!
Can you get a loan for home improvements?
Home improvement loans are basically personal loans which can be used for renovation projects. That means you can get funding from a wide range of lenders, including Jacaranda Finance. They are also ideal for smaller renovations since they have lower borrowing limits. For bigger remodelling projects, you may want to consider other methods of finance such as refinancing or home equity loans.
What is the best type of loan for home improvement?
Personal loans come in two forms: secured and unsecured. Deciding which type is best for you will depend on how much you need to borrow. Secured personal loans require an asset to be attached to the loan agreement as security. Consequently, you can usually borrow more from the lender since there’s less risk associated with the loan. Unsecured loans do not require a security asset and, as such, are usually reserved for smaller loan amounts with shorter terms.
For example, at Jacaranda Finance our small personal loans ($300 – $2,000) are unsecured while our medium ($2,000 – $4,600) and large loans ($5,000 – $10,000) are secured.
Why Jacaranda Finance?
Jacaranda Finance is your trusted local lender. We offer personal finance options to everyday Aussies across the nation – and we’re entirely online! That means you can apply for a loan for home improvement from the comfort of your own home, at any time. No need to queue for hours at the bank or wait days for approval. We utilise the best technologies and procedures to ensure we deliver informed decisions, fast!
So, if you apply within our standard trading hours, you could get a response in under an hour. Better still, should you be approved for your loan, the funds could be in your account in as little as 60-seconds!*
*Only available for clients with NPP-enabled bank accounts.
Am I eligible for a loan for home improvement?
To be eligible for a fast loan with Jacaranda you will just have to meet the following criteria:
- Are you 18 or older?
- Are you an Australian citizen or permanent resident?
- Do you have internet banking set up?
- Have you received a regular income over the last 3 months?
- Do you have an active mobile number and email address?
If you can fulfil all of the above then you’re eligible for a loan! It’s important to note that we can accept welfare payments as a form of income. So, if you receive Centrelink benefits or a pension you may still be eligible for a loan with us.
How much can I borrow for home improvements?
Jacaranda can provide personal loans between $300 to $10,000 which you can use to cover your renovation costs. Here is a quick breakdown of our three loan types:
|Loan type||Loan amount||Loan term|
|Unsecured||$300 to $2,000||3 to 6 months|
|Secured||$2,000 to $4,600||13 to 24 months|
|Secured||$5,000||13 to 24 months|
Fees and terms differ depending on the size of your loan, so refer to our Costs page for more details. You can also refer to the Moneysmart website for useful info about the permissible fees and charges for loans. Home improvement loans are suited to smaller renovations. So, if you’ve been searching ‘construction loan for home addition’, you may want to consider some alternative forms of finance.
What if I need a loan for home maintenance?
Sometimes, the need to renovate comes out of necessity. If your renovations are verging more on the maintenance side of things though, no problem! Jacaranda could still help you get a loan for home improvement. Our personal loans can be used to cover everything from pipe repairs to fumigation costs. So, if life has thrown you a curveball – don’t stress. We could help you get the financial boost you need in no time.
How does a personal loan for home improvement work?
The beauty of applying for a personal with Jacaranda Finance is it’s all online! Simply fill out our application form and we could have a response for you in 60-minutes** or less. Should you be approved for finance, we’ll send through a loan agreement for you to sign.
Once we’ve received your signed agreement, we’ll organise the release of your funds. From then on, you’ll be able to oversee your repayments and details in our online portal. We don’t charge any early exit fees, so you can feel free to pay back your loan as soon as you’d like.
Ultimately, repayments are calculated based on a number of factors. If your application is successful, it’s important you read your loan agreement carefully. We’ll outline all the key details about repayments and costs there.
How long will it take for me to receive my money?
If you’re approved for a loan for home improvement, we can’t release your funds until you’ve sent back the loan agreement, signed. From there, it all depends on your bank! If your banking institution offers NPP-enabled payments, then you could have the cash in your account within 60-seconds. If not, then it will depend on their individual transfer times. You can check if your bank has NPP-enabled payments and services by clicking here.
Do you conduct credit checks?
The short answer is yes. At Jacaranda, we conduct credit score checks as part of our commitment to responsible lending. Part of the responsible lending practice is ensuring we lend to people who can afford to repay their loans. When it comes to credit though, we have a very open-minded approach. We understand that a bad credit score can be the result of past mistakes and may not accurately represent your current relationship with money.
As a result, we’ll look at other factors to see whether a loan with us if right for you. This will include things like your income and employment status. So, there is no reason to let bad credit stand in your way.
5 things to consider before taking the plunge
Before you apply for a loan for home improvement, it’s important to take a step back and consider all your options. Have you really thought through the time and expense of your renovation project? To help you get started, here are a few things you should be thinking about before you apply for finance:
1. Is it worth buying a fixer-upper?
Buying fixer-upper homes is a popular investment trend in the housing market and it can offer up some good long-term returns. Is it worth it though? Well, that comes down to your preparedness. Fixer-upper homes are a large responsibility and financial burden, so you need to ensure you have adequate resources to manage the project. If you’re considering purchasing a house to renovate, you will also need to consider different financing options. A personal loan for home improvement will likely be too small to cover the cost of the work required for large renovation.
2. How much value will the renovations add to your home?
When it comes to renovations, you want to focus on projects that will ultimately pay for themselves when it’s time for you to sell your house. For instance, a kitchen upgrade is usually a smart bet when it comes to resale value. It’s a core component of any home and, for many people, it can be the deciding factor in a purchase. Alternatively, sinking money into a new home office might not make as much sense, since
3. What is your ideal budget?
Remember, you’ll still have bills to pay during your renovations! So, take a moment to sit down with your payslips and your bank statements to figure out the parameters of your budget. How much can you spare for this project and what will you need to borrow? Start by considering your planned structural changes first. It’s more fun to think about cosmetic changes, but you can costs in this area more easily. You can’t get around spending on infrastructure but you can opt for cheaper fixtures if you have to.
4. How are you going to manage your time?
As the old saying goes, time is money. So, if like many Aussies you’re working upwards of 38-hours a week, how are you going to manage your renovation project? Of course, this will ultimately depend on the scope of your project. Yet, even if your plan is to make a few smaller DIY alterations, you’ll be surprised how quickly it’ll eat into your spare time. If you want to stay on time and on budget, set yourself some realistic goals. You could start by mapping out a full timeline of the project.
5. What do the experts say?
Even if you’re planning to do all your own construction work, you’ll need to ensure your renovations adhere to council regulations. You can find much of this information online by referring to your local council websites. For bigger projects, you’ll definitely need to engage an experienced builder or qualified building inspector for advice though. These professionals will also be able to give you a quote on what the project may cost, especially if you’re getting them in to help with the construction.
Tips to help you save money on your next home renovation
If you’re about to renovate your home, you probably want to find different ways to save money while achieving your desired changes. One of the most important factors to renovating a home on a budget while meeting all your goals is planning the entire process thoroughly. Here are some of the easiest tips that can help you save money for your next home renovation:
- Research. Now that you have a budget in mind, it’s best not to be too spontaneous with the renovation. What we mean by that is, it’s best to do your research and have a rough idea of what you want to achieve. Think about what materials, finishes or appliances you want to change. Then research if there are any cheap alternatives. This step should fit into your budget, and most importantly fit your goals. The more planning, research, and budgeting you do, the more likely your home renovation will turn out successful and cost-effective.
- Budget. One of the best and most recommended methods of saving money for your next home renovation is creating and sticking to a budget. Making a budget is quite simple, start off by writing down your net income, what you want to get done to your home, and what the expenses would cost. Save up in advance for those expenses, but more importantly, be realistic with your savings! It’s best not to have your home renovation expenses exceed your savings or income, so always research every cheaper alternative. However, always make sure that there are spare funds for unexpected expenses. After setting up a budget, while it’s important to remain flexible for unexpected expenses, it’s also vital to stick to it and ensure nothing is being exceeded, even with the help of a loan!
- Prioritise. Think about what steps of your home renovation should be prioritised first. If you start your home renovation, would you rather have the floor or the light fixtures done first? Think of which one is more important and which cost should be tackled first. Prioritising the tasks can help you stay more organised with the entire process.
- DIY. One of the most effective ways to save money when renovating your home is by doing it yourself. While there are some things that you should have professionals take care of such as lighting, plumbing or electricity, there are other tasks you should be able to do yourself and save money! Tasks such as painting, preparing surfaces, and ripping up carpets can all be done by you or your family. Think of how all those costs can accumulate and sit heavily on your budget if you get them done professionally.
- Sustainable renovations. While saving on the spot is fantastic, think of how some sustainable renovations could help you save in the long-run. For example, consider installing insulation, LED lights or rainwater tanks to help your home become more sustainable, and save on costs in the long run!
Think you’re ready to go?
If you think you’re ready to apply for a home improvement loan with Jacaranda, scroll up now! You could finish filling out our online application form in a matter of minutes. We’ve designed our application to be as simple as possible. To speed up the process, we suggest having the following details handy when you apply:
- 100 points of identification;
- Your internet banking details;
- Proof of Australian citizenship or permanent residency;
- Your MyGov details (if you receive Centrelink); and,
- Your employment details.
It’s as simple as that! If you’re unsure about any of the above, don’t hesitate to get in touch with our team or head to our FAQ page for more further information. We are always happy to help in any way we can.
*Subject to NPP enabled bank accounts
**If you apply during business hours and we don’t require any additional information from you
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