A pre-sale spruce-up, an updated kitchen, some extra space – whatever your renovation goals, you can get all the help you need from Renovations NZ.
We’ve got the design acumen, the best builders, the most reliable project managers, and now we even offer renovation finance!
Many home owners fail to achieve their renovation dreams due to a lack of funds. So we’ve gone one step further to ensure we help as many Kiwis turn their dream house or kitchen into reality.
With our financing option, you can take out a loan through Gem Finance (a subsidiary of Latitude Financial Services Ltd). To apply, you must:
- Be 18 years old or older
- Be a NZ resident
- Have an NZ bank account
- Have an NZ passport or driver’s licence
- Agree to a credit check, our authorisation statement & terms and conditions
To avail, select the correct finance form for your location and complete it.
Personal loan vs. Extending your mortgage
Many Kiwi home owners choose either to take out a personal loan or to refinance their existing home loan to fund their renovations. Which is better? It depends on personal situations.
If you have built up enough equity in your mortgage, paying for project can be as simple as refinancing your existing home loan. In essence, this is the same as taking out a new home loan. You can borrow the money based on your existing home equity, and refinance by increasing your loan size.
The interest rates are often lower than for personal loans. Nevertheless, some people might choose personal loans over a mortgage for good reasons. One, the application process for personal loans is fast and convenient. Two, it’s usually faster to repay a personal loan than on a mortgage, which can make your interest bill smaller.
Assuming you take out a $10,000 loan, a 6 per cent interest rate for 20 years on mortgage will be over $7000. Repay it at 18 per cent over two years, and the total interest amount will be just under $2000.
Most renovations in NZ are funded from debt, and it’s not such a bad thing. As long as you treat credit as an input cost for your project and seek return for dollar, your renovation will add resale value to your property. It’s a good idea to plan your budget wisely, so you don’t end up with more mortgage than house.
A few tips on budgeting for renovations:
- Do your research to get a clear idea of what your project will cost you.
- Set a budget with about 10% buffer to cover delays, accidental damages and nasty little surprises.
- Check your home insurance before tearing out any walls – make sure you have coverage for renovations.
- Keep track of all expenses from start to finish.
- Aim to have your loan cleared quickly so you don’t pay more in interest.
Planning your renovation finance is always the best way to start and surest way to get quality results!