Bathroom bliss: Funding the renovation of your dreams

Bathroom bliss how to pay for those renovations

With property prices as high as they are currently, moving in to your dream home might be a plan that keeps getting pushed in to the future.

Luckily, with a bit of extra cash, having the bathroom of your dreams doesn’t have to be as far off and the best part is that a nice, functional bathroom will most likely add to the resale value of your house. Unlike an extravagant water feature or pool that won’t be helping you in the long term, an updated bathroom is a good way to love where you live now and set yourself up for the future.

It could be that your dream bathroom is the all-time classic with a clawfoot bath and gold taps or you might prefer the contemporary look of walk-in shower, frameless glass screen and dramatic black marble. Whatever your preference, finding the right finance option is the first step to dealing with that dark, dingy, mouldy bathroom.

Before you get too carried away, it’s best to work out either how much it will cost to turn your bathroom dreams into reality or how much you have available to spend. In the case of the latter, once you have a set dollar figure in mind, you can tailor your bathroom renovations to suit.

Keep in mind there will be a significant difference in the costs of simply remodelling a bathroom, compared to renovating where structural work such as walls and windows need to be removed. Some bathroom companies give you an idea of costs when you contact them online and this may be helpful when looking at your budget.

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Cash

If possible, paying up front to update your bathroom is always the best option. Of course this is not likely to be a choice if you are planning on going all out but for a little remodel this is the way to go. Even though it might seem like a big chunk of money upfront you will be saving on the interest in the long run and you could earn some great rewards if you put the amount on your credit card. It is only suggested you use your credit card if you know you can pay the bill upfront at the end of the month.  

Personal loans

For a medium scale bathroom renovation you may want to consider taking out a personal loan. A personal loan will help you get the amount you need upfront and the repayments can be structured in a way that lets you pay off the new bathroom in set amounts to suit your budget. Another great feature of most personal loan is that you can make extra repayments without penalty if you decide to pay the loan off earlier. This can help you avoid paying high amounts of interest in the long term.

Using your home loan

If you’re going all out on the bathroom of your dreams and you have been paying off your home loan diligently over the years, you may want to consider redrawing on your loan. Harnessing the   built up equity in your loan is a good way to access funds at a low interest rate. Spending the money on renovations should also add value to the home so it’s a win-win situation over time.

After you have decided on the best way to finance your new bathroom, you’re one big step closer to enjoying endless pampering in your own private day spa – at home.

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Learn more about personal loans

Can you refinance a $5000 personal loan?

Much like home loans, many personal loans can be refinanced. This is where you replace your current personal loan with another personal loan, often from another lender and at a lower interest rate. Switching personal loans may let you enjoy more affordable repayments, or useful features and benefits.

If you have a $5000 personal loan as well as other debts, you may be able to use a debt consolidations personal loan to combine these debts into one, potentially saving you money and simplifying your repayments.

What is a personal loan?

A personal loan sits somewhere between a home loan and a credit card loan. Unlike with a credit card, you need to sign a formal contract to access a personal loan. However, the process is easier and faster than taking out a mortgage.

Loan sizes typically range from several hundred dollars to tens of thousands of dollars, while loan terms usually run from one to five years. Personal loans are generally used to consolidate debts, pay emergency bills or fund one-off expenses like holidays.

Should I get a fixed or variable personal loan?

Fixed personal loans keep your interest rate the same for the full loan term, while interest rates on variable personal loans may be raised or lowered during your loan term.

A fixed rate personal loan keeps your repayments consistent, which can help keep your budgeting consistent. You won't have to worry about higher repayments if your rates were to rise. However, on a fixed loan you’ll also potentially miss out on more affordable repayments if variable rates were to fall.

What is a bad credit personal loan?

A bad credit personal loan is a personal loan designed for somebody with a bad credit history. This type of personal loan has higher interest rates than regular personal loans as well as higher fees.

How much can you borrow with a bad credit personal loan?

Borrowers who take out bad credit personal loans don’t just pay higher interest rates than on regular personal loans, they also get loaned less money. Each lender has its own policies and loan limits, but you’ll find it hard to get approved for a bad credit personal loan above $50,000.

What is the average interest rate on personal loans for single parents?

Like other types of personal loans, the average interest rate for personal loans for single parents changes regularly, as lenders add, remove, and vary their loan offers. The interest rate you’ll receive may depend on a range of different factors, including your loan amount, loan term, security, income, and credit score.

What do single parents need for a personal loan application?

Much like applying for other personal loans, applying for personal loans for single parents will likely require the following:

  • Proof of identity
  • Proof of residence
  • Proof of income
  • Details of assets (e.g. car, home)
  • Details of liabilities (e.g. credit cards, other loans)
  • Loan amount
  • Loan term

Are there alternatives to $2000 loans?

If you need to borrow $2000 or less, alternatives to getting a personal loan or payday loan include using a credit card or the redraw facility of your home, car or personal loan.

Before you borrow $2000 on a credit card, remember that interest will continue being charged on what you owe until you clear your credit card balance. To minimise your interest, consider prioritising paying off your credit card.

Before you draw down $2000 in extra repayments from your home, car or personal loan using a redraw facility, note that fees and charges may apply, and drawing money from your loan may mean your loan will take longer to repay, costing you more in total interest.

Can I repay a $3000 personal loan early?

If you receive a financial windfall (e.g. tax refund, inheritance, bonus), using some of this money to make extra repayments onto your personal loan or medium amount loan could help reduce the total interest you’re charged on your loan, or help clear your debt ahead of schedule.

Check your loan’s terms and conditions before paying extra onto your loan, as some lenders charge fees for making extra repayments, or early exit fees for clearing your debt ahead of the agreed term.

How can I get a $3000 loan approved?

Responsible lenders don’t have guaranteed approval for personal loans and medium amount loans, as the lender will want to check that you can afford the loan repayments on your current income without ending up in financial hardship.

Having a good credit score can increase the likelihood of your personal loan application being approved. Bad credit borrowers who opt for a medium amount loan with no credit checks may need to prove they can afford the repayments on their current income. Centrelink payments may not count, so you should check with the lender prior to making an application.

How long does it take to get a student personal loan?

Completing an online personal loan application can often take anywhere from 10 minutes to 1 hour. Depending on your lender, processing your personal loan application may take anywhere between 1 and 24 hours. If your personal loan application is approved, you may receive the money in your bank account the following business day, or, in some cases, the same day.

Can I get a bad credit personal loan with a guarantor?

Some lenders will consider personal loan applications from a borrower with bad credit if the borrower has a family member with good credit willing to guarantee the loan (a guarantor).

If the borrower fails to pay back their personal loan, it will be their guarantor’s responsibility to cover the repayments.

Can unemployed single parents get personal loans?

It can be more difficult for unemployed borrowers to successfully apply for a personal loan. Most lenders require borrowers to have a regular income available to cover the cost of loan repayments.

If you’re self-employed, or if less than half of your income comes from Centrelink, you may not be eligible for some personal loan options. Consider contacting the lender before applying.

Do student personal loans require security?

While some personal loans can be secured by the value of an asset, such as a car or equity in a property, student personal loans are often unsecured, which typically have higher interest rates.

Some lenders also offer guarantor personal loans to students. These loans have lower interest rates, as a guarantor (usually a relative of the borrower with good credit) will fully or partially guarantee the loan, taking on the financial responsibility if the borrower defaults.