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How to Finance a Home Renovation: 6 Options to Consider

July 22, 2026

Whether you’re updating your family home or giving your investment property a facelift, renovating can be a great way to add value, improve functionality and make the most of your property.

From creating your dream kitchen to modernising a rental to attract quality tenants, the right renovation can pay off in more ways than one. But before you start collecting paint samples or booking tradies, it’s important to have a plan for how you’ll fund the project.

The good news? There are several finance options available, and the right one will depend on the size of your renovation, your budget and your long-term goals.

Before You Renovate

Before jumping into a renovation, it’s worth asking yourself a few key questions:

• How much is the renovation likely to cost?
• Will it add value to your property?
• Is the renovation cosmetic or structural?
• Do you have a contingency budget for unexpected expenses?
• What’s the most suitable way to fund the project?

Planning ahead can help avoid unnecessary financial stress and keep your renovation on track.

Finance Option 1: Use Your Home Equity

If your property has increased in value, or you’ve paid down your mortgage, you may be able to access your equity to help fund the renovation.

Refinancing your home loan can allow you to borrow against that equity, often at a lower interest rate than a personal loan or credit card.

This option is particularly popular for larger renovations when spreading the cost over the life of your home loan makes sense.

Finance Option 2: Top Up Your Existing Home Loan

If you’re happy with your current lender, you may be able to increase your existing home loan rather than refinance.

A home loan top-up lets you borrow additional funds without taking out a completely new loan.

It can be a simple solution if you’re planning renovations and already have available equity in your property.

Finance Option 3: A Personal Loan

For smaller cosmetic renovations like painting, new flooring or updating fixtures, a personal loan may be an option.

Because personal loans don’t require your property as security, approval can often be quicker.

However, they generally come with higher interest rates and shorter repayment terms, so it’s important to weigh up the overall cost.

Finance Option 4: Construction Finance

Planning a major renovation or extension?

A construction loan may be suitable if your project involves structural work or building from plans.

Funds are released in stages as construction progresses, helping you manage cash flow throughout the project.

Finance Option 5: Line of Credit

A line of credit allows you to access the equity you’ve built in your property and draw funds as you need them.

This can provide flexibility if renovation costs are spread across several months.

Keep in mind that because your property secures the loan, it’s important to borrow within your means.

Finance Option 6: Use Your Savings

If you’ve built up savings or have funds sitting in an offset account or redraw facility, using your own money can help avoid additional borrowing.

Just remember to leave yourself a buffer for unexpected costs—because renovations almost always come with a few surprises.

Which Finance Option Is Right for You?

Every renovation is different, and so is every borrower.

The best finance option will depend on:

• The size of your renovation
• Whether you’re renovating your home or an investment property
• Your available equity
• Your borrowing capacity
• Your long-term financial goals

At Connected Finance, we can help you understand your options, compare lenders and structure your loan in a way that supports your renovation plans.

Thinking About Renovating?

Whether you’re renovating your current home or upgrading an investment property, we’d love to help.

Get in touch with our team to discuss your renovation plans and explore the finance options available to you.