Renovation Loan To Transform Your House Into A Home

Renovation loans could be the ideal way to pay for the home improvements you are craving. Monzi’s lender-finder service may be able to help you secure finance by matching you with a potential credit provider.

Monzi is a lender-finding service. We do not offer financial advice. Consider seeking independent legal, financial, taxation or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

What is a renovation loan?

As the name suggests, they are personal loans designed to cover the costs associated with renovating a property. Depending on the credit provider, you may be able to borrow up to $10,000.

How do you borrow money for renovations?

Outside of personal loans, you have options for borrowing money. Specifically, these can include:

  • Using your mortgage to borrow additional money.
  • Applying for a construction loan.

You could, additionally, pay for renovations out of your own pocket. However, this may be much easier said than done for major renovation projects.

Can you borrow more on your mortgage for renovations?

You may be able to use the equity in your home to top-up or redraw on your existing home loan.


If you’re planning on renovating your home, you may be able to top-up your home loan. In other words, you can borrow additional credit on top of your existing mortgage, without having to take out a new loan.


In addition, you may be able to redraw on your existing home loan. Individual lenders, however, will differ in terms of their assessment criteria. As a result, you will need to get in touch with your home loan lender directly to find out more.

What is a construction loan?

If you do not have enough equity in your home to borrow against your mortgage, you could consider applying for a construction loan for renovation.

A construction loan is determined by the estimated value of your property post-renovation. Therefore, consumers can withdraw whatever amount they need to cover the new renovation-related costs.

In addition, these loans may be interest-only for a period of time. Then, the repayments will revert to principal and interest at a later date.

How much should I spend on my first renovation?

This depends really on your personal situation, as well as what you envision for your home. However, as a first-time homeowner, you may want to avoid taking serious risks and spend as conservatively as you can.

In short, the main goal is to not overcapitalise. In other words, spending more on a house than what you can sell it for. As a result, it may be a good idea to not spend more on renovations than 5% of the purchase price. However, you may want to consider seeking professional advice before applying for credit.

Should I get a renovation loan?

Before embarking on any major renovation project, you should ask yourself one important question: should I renovate?

Moreover, just because you can afford to renovate, does not always mean you should. Therefore, weigh up the following pros and cons before applying:


  • Potentially add resale value to your home.
  • Improve your standard of living and make your house your own.
  • Can potentially save time, money and hassle by renovating instead of relocating. Specifically, you may be able to avoid the rigamarole of stamp duty, agency and legal fees that are often associated with moving house.


  • Risk to overspend and overcapitalise.
  • May have to move out of home while renovations are happening.
  • May need to secure council approval for certain projects.

What should I renovate?

At the end of the day, nobody understands their home better than you – the homeowner. However, if you are looking to renovate to add value to your house, there are some common value-adding renovation projects you could consider.

In general, renovating a high-traffic room will generate more added value. Examples are listed below.

Kitchen renovation loan

As the old adage goes, the kitchen is the heart of your home. As a result, a few practical renovations can quickly add real value to your property. Here are our tips for the dos and don’ts for renovating your kitchen:


  • Consider installing a canopy rangehood and dishwasher. These appliances help make keeping the kitchen clean and stress-free.
  • Use stone for benchtops and surfaces. Not only do stone benchtops add a luxurious style to the kitchen, but they are also incredibly low-maintainance, long-lasting and eco-friendly.


  • Purchase expensive fittings and fixtures. Often, there are much cheaper alternatives that look just as good.
  • Compromise bench and storage space. After all, having ample storage and room to cook are important features for most people.
  • Use a strange colour palette. What you might find unusual and quirky, a potential buyer may find awful.

Renovation loan bathroom

Just like the kitchen, the bathroom is a high-traffic area within any home. Therefore, renovating your bathroom may be relatively inexpensive, yet add a lot of value to your property.

Here are our dos and don’ts for renovating your bathroom.


  • Install a frameless glass shower. This will instantly boost a luxurious feel within your bathroom.
  • Opt for floor-to-ceiling tiles. They will make your bathroom look complete, and not a half-finished job. In addition, floor-to-ceiling tiles are incredibly popular in more expensive bathrooms.
  • Consider installing a double vanity. After all, the modern homeowner sees the bathroom as more than a purely-functional room.


  • Make extensive changes to the plumbing system, as this can incur a hefty cost and may set you behind schedule.
  • Overuse mosaic tiling. In short, too much mosaic looks busy and can be unpleasant on the eye.

Garden renovations – dos and don’ts

For most Aussies, the backyard is just as important as the house itself. As a result, updating and upgrading your backyard may be a fantastic opportunity for increasing your property’s value.

So, here are a few ways you could save money on your landscape renovations:


  • Consider landscaping from the beginning. It is much easier to create a garden and home that flow together if they are planned together from the get-go.
  • Splurge on small areas of your garden that link to your house, and save on others. For example, spend big on the bluestone tiles you’ve always wanted for the garden path, but opt for cheaper plant species.


  • Renovate piece by piece. Instead, have a grand vision for your backyard set from the get-go.
  • Forget about saleability. Especially in Australia, the backyard can play a huge part in adding value to your home.
  • Fail to secure council approval. As tedious as it is, you need to make sure you tick all the legal boxes before your renovation begins.

Future-proof your home

It’s no secret society is moving towards a more environmentally conscious mentality. As a result, future-proofing our homes is becoming increasingly important. Therefore, consider making your home more energy-efficient during your renovations.

You could, for example, consider the following:

  • Invest in solar hot-water systems.
  • Replace low-efficiency lighting with LED lighting.
  • Improve your home’s heating, cooling and air quality through efficient glazing, insulation and ventilation.

Luckily, there are plenty of specialist companies and individuals that can help make your home greener.

Man on laptop applying online for a renovation loan

How do I get a home improvement loan?

As we mentioned before, there are multiple finance options available to you. However, if you are considering a personal loan to cover your renovation costs, Monzi may be able to help.

In short, consumers are able to lodge an application on our website. From there, we’ll do our best to match you with a potential credit provider. If we successfully match you with a credit provider and they are able to make you an offer, they will be in contact.

Home renovation loan: how much can I borrow?

Through Monzi’s lender-finder service, consumers can apply for an instant approval personal loan from $300 to a whopping $10,000!

Below are some examples of the loans past Monzi customers went on to be approved for:

Renovation loanAmount approved (AUD)Location
Home renovation loan$5,000Rockhampton, QLD
House renovation loan$8,000Lismore, NSW
Loan for renovation$8,500Geelong, VIC
Renovation housing loan$10,000Darwin, NT

The above table does not necessarily reflect the amount you may be approved for.

How do I apply for a renovation loan?

Lodging an application on our website is so simple, and can potentially be done within minutes. In short, it could be the easiest thing you do all day. Here’s how it all works:

Lodge online

The first step is to head to our website and lodge an application. Applications can be easily lodged using our loan slider. Put simply, select the amount you’re thinking of applying for, as well as your ideal repayment terms and click Apply Now.

Consumers will be taken to the next step: the submission form. Here, we will ask for a few pieces of relevant information. Don’t worry, we only ask for the essentials, and you could complete this form in minutes.

Please note, our loan slider will give you examples of what the weekly, fortnightly and monthly repayments may be like on your loan. However, these are only a rough guide. Different lenders vary in how much they charge. As a result, the actual cost of your loan may be different.

Monzi takes over

Monzi takes the lead after you submit your application. In short, we’ll try and match you with a potential credit provider. If you apply during normal business hours, we may even have an outcome for you within 60 minutes.

If we successfully match you with a credit provider, and they can make you an offer, they will be in touch. However, if we cannot match you with a lender, we will let you know straight away! This way, you can get back to living your life.

Meet your new lender

If you are successfully matched with a lender, they will conduct an assessment of your quick loan application. The lender will send through a digital loan contract if your application is approved.

Your funds will only be processed after you approve your contract. Depending on your lender, as well as your banking situation, you may have access to your funds the same day. However, access to credit is always dependent on inter-bank transfer times.

Before approving your contract

Consumers should always read through their loan contract carefully before approving anything. In particular, pay attention to:

  • the fees;
  • rates;
  • charges; and
  • repayment terms associated with your loan.

If you are unsure about anything in your loan contract, get in contact with your lender directly before approving anything. Your credit provider will be able to walk you through all aspects of your credit contract.

Can I apply for a house renovation loan with bad credit?


A bad credit record should not have to get between you and your dream home. After all, a poor credit record could be the result of some financial slip-ups from years ago. As a result, if your finances are on track but your credit record hasn’t caught up yet, consider Monzi.

Our wide network of lenders look at much more than just your credit score. Moreover, lenders will often take into account your current financial situation, including:

  • Your regular income and expenses.
  • How you have been handling any other repayments you may have.

Bad credit? No worries. We might be able to pair you with a lender potentially offering personal loans for home improvement of up to $10,000.

What about a no credit check loan?

We cannot guarantee whether or not the lender you’re paired with will conduct a credit check. After all, all credit providers are separate entities and will have their own assessment procedures.

Even if your lender does perform a credit check, however, you may still be considered for approval. This is because, in general, lenders are more concerned with your current financial situation. More specifically, they will look to see if the loan repayments will fit comfortably within your regular budget.

Keep in mind, however, we cannot guarantee approval. All applications are subject to assessment.

What if I’m unemployed or receive Centrelink

Consumers are not automatically disqualified from applying if they receive Centrelink. On the contrary, certain lenders may be able to regard regular Centrelink payments as a form of income.

This being said, lenders may differ in terms of what kind of Centrelink applicants they can accept. For example, certain lenders may not be able to accept applicants receiving Newstart.

In addition, there may also be rules around what percentage of your income Centrelink benefits can make up. As a result, Monzi cannot guarantee whether or not you will be approved. Moreover, note that lenders may not offer loans for unemployed.

What is the best way to borrow credit for renovations?

This depends on your individual situation. For example, if you have a lot of equity in your property, you may be able to borrow more against your mortgage. On the other hand, a personal loan may be a more appropriate option for different consumers.

Monzi, unfortunately, cannot answer this question for you. After all, we are not financial advisers. However, you may want to consider getting in contact with a licensed financial adviser.

For more information, visit Moneysmart’s page on accessing financial advice.

What is the interest rate on a home renovation loan?

Unfortunately, we cannot give you an idea of what interest rate will be charged on your loan. After all, lenders may all vary in terms of the rates charged on quick money loans.

As a result, you may need to get in contact with your lender directly.

However, the interest rate will often be determined by:

  • The lender themselves.
  • The loan product you’re approved for.
  • Your own personal circumstances.

Renovation loan calculator

To get a rough idea of what your renovations may cost, consider using a real estate estimate calculator.

Moreover, users are able to customise the room type, measurements, as well as the quality of the materials. As a result, consumers can quickly get a rough idea of what size of personal loan they could consider applying for.

Why choose Monzi for a renovation loan?

Because we are the best lender-finders in the business of course! However, we realise you may need a little more convincing than that.

We work at lightning speed

Speed and efficiency are always at the forefront of our minds. Therefore, once you lodge your application, our system will get to work ASAP! If you apply during normal hours, we should be able to get started within minutes of you applying.

Hopefully, we can have an outcome for you within 60 minutes of lodging your application. Again, however, this is dependent on you applying during normal business hours.

We keep everything under lock and key

Monzi employs both tech-security giants Comodo and McAfee to ensure your details are always kept safe, secure and encrypted. Therefore, you can always rest assured all your personal information is kept safe.

Access a network of trusted credit providers

The days of swimming with the sharks could be over. In other words, when you apply with Monzi, you can be sure you will only be paired with a reputable credit provider licensed by ASIC.

Keep it digital

Monzi’s lender-finder service is always 100% online. Therefore, consumers can lodge an application on our site from any internet-capable device.

The days of listening to tedious please hold music could be over. In addition, you won’t have to fill in any paperwork or visit a physical branch. Instead, pop your favourite show on the telly, boil the kettle and get comfortable on the couch. In short, you could have an outcome before your show is over. Instant cash loans online really can be that easy.

Crystal clear terms and conditions

The lender we pair you with will not try and hide anything from you. Moreover, all the details of your loan will be included in your contract.

If you aren’t sure of anything before you approve your contract, get in contact with your lender. They will be able to walk you through every step of the way.

Top-notch customer support

Yes, our business is 100% online. However, we haven’t lost sight of how valuable genuine customer support is.

In other words, on the other side of your screen is a fellow Aussie. If you have any questions about your application or our lender-finder service, you can chat with a real person at

Let’s get started

Found the best place to live in Australia? Ready to turn your house into a home? We’re ready to try and match you with a potential credit provider. From relocation loans to renovation loans or solar financing, there could be a credit product for you. Apply today.

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You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000


12 months (minimum)

12 months (maximum)


20% upfront establishment fee

+ 4% monthly fee


Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. The minimum and maximum loan term is 12 months. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Loan amount

$2,001 - $4,600


13 months (minimum)

24 months (maximum)


48% Annual Percentage Rate (APR)

67.41% Comparison Rate p.a.


Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principal Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Annual Percentage Rate (APR) for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.

Loan amount

$5,000 - $10,000


13 months (minimum)

24 months (maximum)


21.24% Annual Percentage Rate (APR)

48% Comparison Rate p.a.


Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principal Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Annual Percentage Rate (APR) for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.