Thinking about renovating?

You’re not alone —renovations are booming across Australia

In the March 2025 quarter, homeowners collectively spent around $3.44 billion on alterations and additions to their homes, a quarterly rise of 1.3% and a year-on-year increase of 5.5%, according to data from the Australian Bureau of Statistics.

Latest estimates for renovation costs (2025):

• Kitchen: Typically ranges between $20,000 and $50,000 Canstarsoho.com.auRed Tree Financeownhome.com

• Bathroom: Most renovations fall between $15,000 and $30,000, with average spends around $26,000 site.co-architecture.comCanstararchipro.com.auownhome.com

• Bedroom: Light renovations can be as low as $2,000–$5,000, while more extensive work (like adding an ensuite or walk-in robe) can push costs up to $30,000+ Canstarownhome.com

10 Ways to Finance Your Renovation

1. Construction loan
   Funds are drawn in stages as work progresses. You pay interest only on what’s used, with interest-only terms during construction, then it converts to a standard principal-and-interest loan after completion.

2. Personal loan
   Quicker and easier to obtain than a construction loan, though typically comes with higher interest rates.

3. Pay cash
   The simplest and most straightforward—no applications, no interest, no debt.

4. Redraw from your home loan
   If you've built up extra repayments, you can access those funds via your mortgage’s redraw facility.

5. Offset account
   Use funds held in the offset account for renovation, reducing interest on your mortgage in the meantime.

6. Refinance your home loan
   Refinance to access equity at potentially lower rates than personal loans or credit cards.

7. Line of credit loan
   Draw on funds up to a pre-approved limit, paying interest only on what you actually use.

8. Government grants and incentives
   Depending on where you live, you may qualify for rebates or grants—especially for energy-efficiency or accessibility upgrades.

9. Stage-by-stage savings
   Break the renovation into phases, funding each stage from savings rather than borrowing all at once.

10. Credit card (with caution)
    Though convenient and application-free, credit cards often carry very high interest rates—best reserved for small expenses you can pay off quickly.

Want to renovate? Let’s discuss your options