How to manage your Renovation Finance DIY
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?
|
Amount |
Type of Loan |
Interest Rate P.A. |
Years |
Monthly Payment |
Interest |
Total Repaid |
|
10,000 |
Home Loan |
8.00% |
20 |
83.64 |
10,073.60 |
20,073.60 |
|
10,000 |
Personal Loan |
13.50% |
4 |
270.76 |
2,996.48 |
12,996.48 |
|
10,000 |
Car Loan |
11.25 |
5 |
219.93 |
3,195.80 |
13,195.80 |
|
10,000 |
Private Loan |
10.00% |
2 |
461.45 |
1,074.80 |
11,074.80 |
Bathroom Renovation Finance,
sums on the different loan types, you'll see that a personal or car loan may be better.
Loan calculator for best choice loan options for bathroom renovator finance
Please read our terms of use prior to undertaking
any information provided on this site.
(All content and images are copyright© fixabathroom.com.au 2009)
Please do not copy or reproduce without prior written consent.
Web Design by CanFlash.com
Easy DIY Bathroom Renovation
Do you need a
Wall and Floor Tiler ?
Fix a Bathroom.com.au
