Home Renovation
Loans Fremantle

There’s nothing like renovating to breathe new life into your home. But beyond cosmetic touches – like a new carpet or a lick of paint – home renovations can take a long time and involve expensive structural changes. Before you start work, it’s important to pre-plan your project, establish your budget, and determine if you’ll need to borrow money to finance this exciting next step for your home.

It might be daunting, but it doesn’t have to be hard. At Loan Monster, we’ll guide you through the process of choosing your loan. And when we’ve helped you find the right renovation loan to finance your project, just sit back and let us take care of the rest.

By completing this enquiry form you accept Loan Monster's Privacy Policy.

The Types of
Home Renovation Loans

There are home loans for every type of project, big or small. From personal and construction loans to refinancing options that let you capitalise on the equity in your home. The best way to find out which home improvement loan is most suited to you is to have a chat with one of our helpful local brokers in Fremantle or online.


Your mortgage is a huge financial commitment. But it also provides you with a fantastic asset that you can leverage to finance your renovations. Mortgage refinancing is the process of paying out your existing home loan and replacing it with a new one. Switch your new loan with better interest rates or access some of the money put towards your home for things like renovation and repairs. It’s a great option if you’re planning to live in your home for a year or more.

The more money you have put towards repaying your home loan, the more of the property you own outright – this is your home’s equity. An equity loan is also sometimes known as a ‘second mortgage’ as it uses your home’s equity to negotiate an additional loan (which you can then use for your home improvement project). These types of loans are called ‘secured loans’ because they use the equity in your home as security.


A cash-out refinance is another way to use the equity on your home to access funds. With this option, you walk away with a new mortgage (ideally at better rates) and a cheque for cash. This is from the equity you have built with payments towards your mortgage.

Mortgage refinancing options tend to have lower interest rates compared to personal loans and are a great way to leverage your home’s equity to finance a renovation.

Get in Touch
With Us Today

Refinancing your mortgage for renovations doesn’t have to be hard – just get in touch with one of our friendly brokers in Fremantle to start the process.

Request an Appointment


A construction loan, or building loan, is ideal for major renovations such as large extensions or rebuilds. This is because they require a larger loan amount. As building follows specific stages over a series of months, you pay this type of loan in instalments. These payments are referred to as ‘progressive drawdowns’. Progressive drawdowns occur during the key stages of the build and are paid direct to you as an owner-builder, or to the builder you hire when you provide receipts for your construction work.

The biggest benefit of payment in instalments is that you generally pay less interest than if you borrowed a bulk sum upfront. You only pay interest on the money you actually use during the building process. This is a huge advantage compared to borrowing the same amount as a lump sum, where you pay the full interest from day one.

Our home renovation brokers in Fremantle can help you determine if a construction loan is the best choice for your home improvement project. They consider the extent and timeline of your build, and who’s involved in the construction process. Loan Monster is here to help you find the best deals on construction loans for your home improvement project.

Take Out a
Personal Loan

Personal loans are a great option for small renovation projects. Ideal for minor construction projects when you expect your loan amount to be below $50,000. One benefit of a personal loan is that, unlike a loan that leverages your home’s equity, a personal loan is usually an unsecured loan. Unsecured personal loans don’t need ‘security’ – assets like your home, vehicle or other valuable property – for you to get the loan.

Instead, the lending criteria considers your income, cash flow, and history of managing debt (credit history). This will determine how much you can borrow. Another benefit of an unsecured personal loan is that approval can happen faster, as the bank requires less information about your renovation than for other types of loans.

Personal Loan
Interest Rates

Personal loans for home renovations can have either a variable or fixed interest rate. Fixed rate personal loans provide the comfort of knowing that the loan term is set, and the minimum repayment amount is locked in. Variable rate personal loans follow market interest rates, which means that monthly repayment amounts can be lower when interest rates fall and higher when they rise.

Our brokers can give you friendly, professional advice to help you decide which personal loan option is the best choice for your home improvement project.

What About Paying
Out of Pocket?

We know that the simplest option for financing your renovation is to pay out of pocket. But while this may seem like the easiest choice, there are a few drawbacks to consider. Depending on the amount you need, you could use your savings, withdraw money from your home loan’s offset account (if you have one), or sell investments. There are clear benefits to this process. As you won’t be adding to your debt with a new loan, you won’t incur additional interest or add to your monthly repayments.

Using Savings

But before you jump to empty your savings to finance your renovation, it’s worth considering your financial situation. If your savings are your emergency fund, withdrawing large amounts of money for home improvements could weaken your day-to-day financial resilience.

Selling Investments

While selling investments is a viable option in a strong market, you can’t guarantee market performance at the time you’re planning your renovations. There can also be tax implications, which we recommend investigating yourself.

Accessing Your Offset Account

Finally, using money from your offset account will impact the interest rates you pay on your home loan.

For those with enough savings to cover home renovation costs and have savings leftover, paying for your home improvements out of pocket is a simple and easy option. For others, keeping your savings, investments, and offset account untouched is a better option. Taking advantage of the many home renovation loans available may be safer.

Let Loan Monster Take
Care of your Home Renovation Loan

At Loan Monster, we make everything simple. Whether your home improvement plans are big or small, there’s a renovation loan to suit you and your circumstances. Let us take the worry out of financing your renovation. Get in touch to make an appointment with our team in Fremantle or fill out our enquiry form and get in touch with one of our brokers today.

By completing this enquiry form you accept Loan Monster's Privacy Policy.