Finance

Bathroom Renovation Finance,  sums on the different loan types, you’ll see that a personal or car loan may be better.

AmountType of LoanInterest Rate P.A.YearsMonthly RepaymentInterestTotal Repaid
10,000Home Loan8.00%2083.6410,073.6020,073.60
10,000Personal Loan13.50%4270.762,996.4812,996.48
10,000Car Loan11.255219.933,195.8013,195.80
10,000Private Loan10.00%2461.451,074.8011,074.80

Loan calculator for best choice loan options for bathroom renovator finance.

How to manage your Renovation Finance DIY

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Most lenders for home finance will tack your borrowings onto your existing home loan.

….. IS THIS A GOOD THING?…

Well, if you put it on top of your home loan, you’ll increase your payable stamp duty, fees and interest. Will  your building insurance increase, etc. I once tried to borrow for a renovation, only to be told that
 “it may risk the value of the existing building and that the loan was not as secure as the bank would like”. And I’m in the building trade!

The bank then proceeded to tell me that I may be better of with a personal loan or car loan. Their reasoning was that there would be less complications and their interest in the main building would not be jeopardised. (well, at least on paper).

The main aspects for renovation finance are. :-
* Is the additional loan going to change the current home loan?
* What insurance risks and requirements are there?
* Is a personal loan or car loan easier?
* How many years of repayments?