HOW DO I RENOVATE MY HOME?
Looking to make some changes to your home? Whether it be a small painting job or something larger, like a second story extension, we are here to help.
Considering your finance options upfront is vital and will allow you to gauge exactly what fits within your budget.
It’s also important to consider the extent of your renovations because it will directly influence the type of loan required and the necessary documentation, whether it be for the bank or your council.
We know you have lots of questions. So, we’ve provided answers to the most common ones here.
The difference between the value of your property and the amount you owe on your home loan. Available equity may leave you in a position to renovate your home without out savings. A free property valuation can help evaluate this.
Good question. We will provide you with the specifics over the phone before we meet, but generally the banks ask for:
- Proof of income
- A deposit backed by a proven savings history
- Council approved plans for large scale renovations
- A good credit history (we can still help if you don’t)
We have a calculator to give you an idea but we will assess your situation and confirm this for you. Generally speaking, the more money you earn and the less debt you have, the more your capacity to borrow will be. Each lender will be different.
It sounds a bit dry, but Loan to Value Ratio is actually the amount of money you wish to borrow in comparison to the value of your property. So, say you want to buy a house valued at $500,000 and a have a $100,000 deposit, your Loan to Value Ration would be 80%. Most lenders adjust their interest rates relative to the LVR and have specific ratios to which they lend.
Variable interest rates move, normally relative to changes in official interest rates set by the Reserve Bank of Australia. A variable rate loan is beneficial when rates are on the decline. Fixed interest rates don’t move. You can fix your rate for a particular period of time, normally between 1 and 5 years, but it’s most beneficial when rates are on the rise.