What’s the best way to finance home renovations?

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[READER QUESTION] 'Our home is already paid and we would like to do improvements/renovations. Can we apply for a home loan to finance this, and if not, what would be the best borrowing option?' Rick Briers-Danks from VeritasWealth replies. Moneyweb

Our home is already paid and we would like to do improvements/renovations. Can we apply for a home loan to finance this, and if not, what would be the best borrowing option?

However, if you have a family member who offers to lend you the money, which would be cheaper and less hassle, it is advisable to record the agreement in a contract to protect both parties. Contact your bond provider and see if you are able to borrow against the existing facility again. It may be a case that you simply need to complete some forms to restart the loan.

If that option is no longer available, you can register a new bond, but this can be time-consuming and expensive. Registering a bond on a property means paying legal fees, but a bond will generally be granted at a better rate than a normal bank loan, so it is worth contacting the bond provider to see what your options are first.

 

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