Home News Can I fund my home renovations with my line of credit?

Can I fund my home renovations with my line of credit?

Font size :

Q. I have an existing line of credit with an available limit of over $300,000. Are there any issues with drawing down on my line of credit to fund my home renovations?

A. If your existing line of credit is secured against your home (that is, the property which you intend to renovate) and your renovation plans include structural changes, then you really should first speak to your lender. 

Let your lender know what you intend to do and get their okay. More than likely the terms of your loan agreement will stipulate that you must not carry out structural changes to your home without your lenders consent.

At the end of the day – it is the property that your lender holds as security for the loan.  So they have every right to be particular as to what is done to the property. It may be that your lender will be fine to lend you the money for the renovation, however they may well insist on the loan being a construction loan. 

This way the lender can ensure that sufficient funds are always available to complete the construction.

The last thing the lender wants if to be left holding a half-constructed property.
 

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

House prices return to more affordable levels in mining towns House prices return to more affordable levels in mining towns

While the end of the mining boom caused property prices to collapse, on the plus side, homes are more affordable again Read more

Borrowers should anticipate a possible rate hike Borrowers should anticipate a possible rate hike Some experts advise borrowers to look for a fixed loan that allows extra repayments so that they can whittle down the balance sooner ... Read more

Why choosing the right mortgage is hard for first-home buyers Why choosing the right mortgage is hard for first-home buyers Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals ... Read more

Mortgage applications drop in second quarter Mortgage applications drop in second quarter This marks the “beginning” of a downward trend, says Equifax executive ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Jul 26, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords