Many homeowners have a comprehensive list of the renovation projects they would like to complete to make their house the home of their dreams. Now more than ever, renovating is becoming more popular than simply buying a new home, and it may be a lot easier than you might think.

Why Buying a New Home is Potentially Not the Answer

When a family outgrows a house or the repairs and maintenance of it become too overwhelming, it has been common for property owners to wave the white flag and embark on the journey of buying a new place and saying goodbye to the old one. In the current market a lot of homeowners take pause and weigh up whether or not buying a new home is a preferred option.

Why not buy and sell?

• Firstly, there are costs to sell a home and buy a new one which are quite substantial, consider agents fees, stamp duty, removalists and the like.
• There is also the likelihood of needing to spend time and money on repairing aspects of the property to make it marketable.
• The selling process with home opens is time consuming and often an inconvenience.
• The process of moving house is emotionally draining and stressful.

In short it can be an overwhelming undertaking.

Why Renovating Could Be the Answer

A volatile housing market that has created a steep increase in property prices along with added scarcity issues means buying a property is not particularly easy right now. But on the flip side, these market conditions also mean that there is a strong chance that many homeowners have gained significant equity, and this brings with it options.

How to Release Equity to Renovate

Non-Structural Home improvements

Increasing your existing loan to finance renovation projects is usually quite straightforward. If you are embarking on non-structural improvements such as painting, new flooring, tiling, new appliances, window treatments or other more cosmetic projects it’s very easy. You can simply top up your existing loan or, if it is more cost effective, refinance to a new lender and release funds as part of the process.

Structural Home Improvements

If there is building work involved it is likely that a building contract will be required to be forwarded to the lender and the new loan be in the form of a conventional construction loan with progress draws. This can also be done with your current lender or by refinancing to a new one.

How to Get Started

To get the process underway, your mortgage broker will be able to order a valuation on your property to discover your equity position. Multiple valuations may be ordered through various lenders  to discover who will offer the highest valuation and therefore the greater equity .

From there your mortgage broker will discuss your lender and structuring requirements and you can select your preferred option.

How long will the finance process take?

If you simply draw out funds from your existing lender you could have the money available within a couple of weeks. If you refinance, it will take a further couple of weeks or so, depending on the lenders involved and their current turnaround times.

Either way, releasing equity in your property to finance those longed-for renovation is a savvy way to get the dream home you want and sooner. To get started, contact your Blackburne Mortgage Broker.

Many homeowners have a comprehensive list of the renovation projects they would like to complete to make their house the home of their dreams. Now more than ever, renovating is becoming more popular than simply buying a new home, and it may be a lot easier than you might think.

Why Buying a New Home is Potentially Not the Answer

When a family outgrows a house or the repairs and maintenance of it become too overwhelming, it has been common for property owners to wave the white flag and embark on the journey of buying a new place and saying goodbye to the old one. In the current market a lot of homeowners take pause and weigh up whether or not buying a new home is a preferred option.

Why not buy and sell?

Firstly, there are costs to sell a home and buy a new one which are quite substantial, consider agents fees, stamp duty, removalists and the like.

There is also the likelihood of needing to spend time and money on repairing aspects of the property to make it marketable.

The selling process with home opens is time consuming and often an inconvenience.

The process of moving house is emotionally draining and stressful.

In short, it can be an overwhelming undertaking.

Why Renovating Could Be the Answer

A volatile housing market that has created a steep increase in property prices coupled with added scarcity issues meaning buying a property is not particularly easy right now. But on the flip side, these market conditions also mean that there is a strong chance that many homeowners have gained significant equity, and this brings with it options.

How to Release Equity to Renovate

Non-Structural Home improvements

Increasing your existing loan to finance renovation projects is usually quite straightforward. If you are embarking on non-structural improvements such as painting, new flooring, tiling, new appliances, window treatments or other more cosmetic projects it’s very easy. You can simply top up your existing loan or, if it is more cost effective, refinance to a new lender and release funds as part of the process.

Structural Home Improvements

If there is building work involved it is likely that a building contract will be required to be forwarded to the lender and the new loan be in the form of a conventional construction loan with progress draws. This can also be done with your current lender or by refinancing to a new one.

How to Get Started

To get the process underway, your mortgage broker will be able to order a valuation on your property to discover your equity position. Multiple valuations may be ordered through various lenders as to discover who will offer the highest valuation and therefore the greater equity .

From there your mortgage broker will discuss your lender and structuring requirements and you can select your preferred option.

How long will the finance process take?

If you simply draw out funds from your existing lender you could have the money available within a couple of weeks. If you refinance, it will take a further couple of weeks or so, depending on the lenders involved and their current turnaround times.

Either way, releasing equity in your property to finance those longed-for renovations is a savvy way to get the dream home you want and sooner. To get started, contact your Blackburne Mortgage Broker.