The new year is fast approaching, and for millions of Australians who have spent more time inside than ever before, you may be putting a home renovation at the top of your resolutions list.
Whether you’re dreaming of updating your dated kitchen, creating your ideal home office, or adding a granny flat, there are several projects to consider that not only can transform your home but increase your property’s value.
Earlier this year, a RateCity survey found that 37% of respondents had intentions to renovate their homes in 2021. And the number of renovation-eager homeowners may have increased following the pandemic-related restrictions and lockdowns that kept so many inside for months on end.
Recent data from Hipages found that the money households may have otherwise spent on travel and entertainment are being put towards home improvements instead. The research found that two-thirds of homeowners were planning on using their lockdown savings on home maintenance, improvement, repairs, or renovations.
However, a perfect storm is brewing for homeowners looking to renovate. The latest supply chain delays and material shortages are already impacting the construction industry. Timber supplies, for example, are reportedly drying up across the nation, as demand explodes from would-be renovators across Australia, and the United States, where some of our timber is imported from.
So, if you’re planning on renovating your property this new year, your lockdown savings may not be enough to carry your project to completion. This is where a renovation personal loan may be able to offer some assistance.
Typically, you may be able to borrow up to $50,000 for a renovation personal loan, but the loan amount and your interest rate will depend on your financial situation and credit history. Keep in mind that there are benefits and disadvantages to any financial product, and you may have to pay upfront fees and other ongoing costs with this loan type.
To help you in your personal loan comparison journey this December, RateCity has created Leaderboards to rank personal loans in the marketplace using our Real Time RatingsTM system. Real Time RatingsTM results give each personal loan a score out of five stars, based on loan costs and flexibility.
(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)
Top-ranking personal loans for borrowers with excellent credit scores
If you know you have an excellent credit score, you may find that you qualify for more competitive renovation personal loans. Lenders are more likely to reserve these lower rate loans for less risky borrowers.
Green renovation personal loans
If you’re considering ‘green’ upgrades for your home, such as installing solar panels and rainwater tanks, you may qualify for a green personal loan. Lenders may also offer lower-than-average personal loan interest rates with this loan type to incentivise borrowers to make environmentally friendly choices.