Is it hard to get approved for a renovation loan?

All lenders, regardless of the loan you apply for, will consider your credit history. If you have a good credit history, you should be able to get a loan without difficulty, granted you can afford it. Most lenders will ask for details about your income, employment, current liabilities, ongoing debts and defaults. They are also unwilling to lend if you have been or are currently bankrupt. It may also be difficult to get a renovation loan if you’re currently facing financial hardship.

How can I add value to my property while keeping costs down?

Keeping costs down can maximise your potential value increase. You can do this if you: Add value with creative fixes. Homebuyers pay special attention to a home's bathroom and kitchen. You could make a run-down bathroom or kitchen more functional and pleasant, while keeping costs down. With cosmetic renovations, it may be best to limit the changes to what is in plain view. Keep a tab on expenses. Plan and budget ahead of time, and stick to it. When budgeting, you should take into account the cost of materials as well as labour. Make sure your budget accounts for all the renovations you need to make. Consider DIY. DIY can help you keep costs in check. This is because you will not be paying for additional labour, which can be expensive in Australia. However, you need to have access to the right tools and skills. A bad DIY job will do more harm than good to the value of your property, so if you're not confident, don't risk it. Compare your alternatives. Take the time to shop around and negotiate. You could potentially save money on supplies and labour. It's also important to apply the same principle to home improvement loans. The comparison table and tips in this guide can help you find the best deal for you. Think long-term. This is especially important if you plan to continue living in your home. This is because you stand to personally benefit from it. Energy-efficient additions can be a plus (for your bills and the environment). By opting to go green, you may also qualify for certain rebates.

Can I use the equity in my home to renovate?

Yes, if you own your home it is often possible to use your equity for renovations. One option is to apply for a top-up of your existing home loan, which increases its size and you withdraw the additional funds to renovate. Another viable option is using your equity to take out a second loan. This is often the more favourable option if your current home loan is on a fixed rate.

What is the best loan for home renovations?

There is no one best loan for everyone. This will entirely depend on your credit profile, personal circumstances and what you can afford to repay. A good first step is to check out a personal loan calculator and see what fits into your budget.

Home Improvement Loans 2026

8 of 192 results

Interest rate (p.a.)	Comp. Rate (p.a.)	Application Fee	Monthly Fee	Monthly Repayment
NOW Finance No Fee Unsecured Personal Loan Finder AwardFixed18 Months - 7 Years $5,000 - $50,000	Interest Rate (p.a.) 5.95% to 26.95%	Comp. Rate (p.a.) 5.95% to 26.95%	Application Fee $0	Monthly Fee $0	Monthly Repayment $607.99	Borrow up to $50,000 for any worthwhile purchase and pay no establishment or ongoing fees without providing collateral. You can also benefit from a more competitive interest rate if you have a strong credit score.	Go to site View details Compare product selectionCompare	loading
Revolut Unsecured Personal Loan Fixed1 - 7 Years $5,000 - $50,000	Interest Rate (p.a.) 6.99% to 24.49%	Comp. Rate (p.a.) 6.99% to 25.32%	Application Fee $0	Monthly Fee $0	Monthly Repayment $617.45	Limited Time Offer: Apply in-app and access your funds in minutes if approved. New User Offer: Get a A$50 cash reward when you make your first repayment within 90 days of joining Revolut. Offer ends 31 Dec 2026. T&Cs apply.	Eligibility: Must be an Australian/NZ citizen or permanent resident, employed for 3+ months, earning at least $2,000/month, with a recommended Equifax credit score of 500+.	Go to site View details Compare product selectionCompare	loading
OurMoneyMarket Unsecured Low-Rate Personal Loan ($20,000-$100,000) ExclusiveFixed1 - 7 Years $20,000 - $100,000	Interest Rate (p.a.) 5.95% to 18.99%	Comp. Rate (p.a.) 5.95% to 21.78%	Application Fee $0 min.	Monthly Fee $0	Monthly Repayment $607.99	Finder exclusive: Receive a $100 eGift Card if you have Excellent Credit (as determined by OMM’s credit assessment and scorecard), apply via Finder by 31 October 2026, and settle by 15 November 2026. For loans between $20,000 and $100,000 only. T&Cs apply.	Eligibility: Applicants must have an Equifax credit score of 500 or above, an annual income of more than $25k, and must be an Australian citizen or permanent resident.	Go to site View details Compare product selectionCompare	loading
ING Personal Loan Most LovedFixed2 - 7 Years $5,000 - $60,000	Interest Rate (p.a.) 6.19% to 19.99%	Comp. Rate (p.a.) 7.03% to 20.78%	Application Fee $199	Monthly Fee $8	Monthly Repayment $624.23	No early repayment fees and same-day funding for existing ING customers. Eligibility: Applicants must be 18+, Australian/ NZ citizen or permanent resident of Australia, and earning at least $36,000 a year (before tax) with PAYG payslips.	Go to site View details Compare product selectionCompare	loading
NAB Unsecured Fixed Rate Personal Loan Fixed1 - 7 Years $5,000 - $55,000	Interest Rate (p.a.) 7.50% to 22.00%	Comp. Rate (p.a.) 8.54% to 22.88%	Application Fee $0	Monthly Fee $15	Monthly Repayment $637.12	$250 application fee is waived for valid applications started from 8 October 2026 until 3 December 2026. Applications must be completed within 30 days. T&Cs apply.	Go to site View details Compare product selectionCompare	loading
Harmoney Unsecured Personal Loan Fixed3 - 7 Years $2,000 - $100,000	Interest Rate (p.a.) 5.94% to 24.03%	Comp. Rate (p.a.) 5.94% to 24.98%	Application Fee $275 - $575	Monthly Fee $0	Monthly Repayment $625.37	Go to site View details Compare product selectionCompare	loading
NAB Unsecured Variable Rate Personal Loan Variable1 - 7 Years $5,000 - $55,000	Interest Rate (p.a.) 7.50% to 22.00%	Comp. Rate (p.a.) 8.54% to 22.88%	Application Fee $0	Monthly Fee $15	Monthly Repayment $637.12	$250 application fee is waived for valid applications started from 8 October 2026 until 3 December 2026. Applications must be completed within 30 days. T&Cs apply.	Go to site View details Compare product selectionCompare	loading
Jacaranda Finance Unsecured Personal Loan Fixed25 Months $3,000 - $10,000	Interest Rate (p.a.) 27.95% to 29.95%	Comp. Rate (p.a.) 44.50% to 46.50%	Application Fee $13.50 - $950	Monthly Fee $26	Monthly Repayment $892	Go to site View details Compare product selectionCompare	loading

Showing 8 of 11 results

You can use a personal loan to fund extensive home renovations or smaller upgrades.
Personal loan options for renovations include secured and unsecured personal loans, as well green loans.
You can also use your existing mortgage to fund your renovations.

What is a renovation loan?

A renovation loan, also known as a home improvement loan, is a loan designed to fund the improvement of a home. This can either be your personal home, or an investment property. It doesn't matter if your intent is to improve your home for your own benefit, or with the aim to increase its value for future sale.

Depending on your situation and planned renovations, there are a variety of personal loans you can look towards to fund your home improvements.

What types of home renovation loans are there?

When choosing a personal loan for your home renovation, you can choose from:

Unsecured personal loans: An unsecured personal loan allows you to borrow money without using an asset as security.

These loans are generally flexible, and can be used for more than just home improvements. Generally they will have higher rates or lower borrowing limits than secured loans.

Secured personal loans: A secured personal loan allows you to borrow money using an asset as collateral. For home renovations, you could use your house or the equity in your house as security. Your equity will have to be more than the loan amount to qualify.

Secured personal loans generally have higher borrowing limits, lower interest rates and longer loan terms.

Green loans: A green loan is a personal loan designed for green and sustainable home upgrades.

These loans come with lower rates and flexible repayment terms. But they have restrictions on how you can spend the funds. Your renovations will be limited to environmentally beneficial additions or upgrades, such as adding solar power, insulation or double glazing.

Interest rates on unsecured personal loans vary significantly between lenders and depend on your credit profile, so it's worth comparing current rates and comparison rates side by side rather than relying on a single figure. Secured and green loans typically come with lower rates than unsecured loans, given the reduced risk to the lender.

If you're unsure, you can take a look at other ways to finance your renovation in our full guide.

What can I use a renovation loan for?

You can use a home improvement loan for a number of renovations. Some of them may be common fixes, like remodelling your kitchen. Some of them may be less common, like a star-gazing roof or hidden storage. It’s a good idea to identify what you want to accomplish before you begin.

Ways to use your renovation loan:

Kitchen remodelling
Bathroom remodelling
Adding a swimming pool
Green/energy-efficient additions (solar panels, new windows, insulation, etc.).
Home repairs
New exteriors
Extensions
Garden landscaping
New furniture
Adding storage space

In the 3 months to September 2025, Australians spent $3.7billion on renovating their residential properties, according to the ABS. (This is the latest data available, as at 12 March 2026.)

For large-scale projects, many homeowners opt for home equity or mortgage top-up loans rather than standard personal loans. A home loan top-up allows you to increase your existing mortgage limit to access extra cash at typically lower interest rates than unsecured finance. Most lenders, including Westpac and St. George, allow you to borrow up to 80% of your property's value (minus your current loan balance) as usable equity. For structural changes exceeding $100,000, lenders may require a building and construction loan which provides progress payments at various milestones to help manage cash flow (Source: Westpac and St. George).

What should I consider when applying for a renovation loan?

You should ask yourself the following questions before taking out a renovation loan:

Can I afford the repayments?
Calculate the cost of what you can afford by using our loan calculator. You should account for both the interest rate and the comparison rate. The comparison rate includes the loan’s fees and charges, and is often more than the interest rate. It gives you an indication of how much the loan will actually cost. You should also consider your loan term and repayment frequency.

How flexible is my loan?
Look out for whether your loan allows you to make additional repayments or redraw funds. Some loans may also allow you to pay off the loan early, without penalties. You may also be given the option to change the loan terms if needed.

Have I applied for the right amount?
Borrowing too much or borrowing too little can be a problem. How much you borrow – that is your loan principal – will affect your interest rate. If you borrow too much, it will cost you more money. If you borrow too little, it may be difficult to get additional finance to complete your renovations.

Funding speed varies significantly between lender types. FinTech and online lenders like Credit24 or Fair Go Finance can often provide approval within 24 hours and deposit funds in as little as 15 minutes to one business day. Conventional banks generally take between a few days and two weeks for personal loans, while home loan top-ups or construction loans typically require four to six weeks for full processing and valuation (Source: Credit24 and Plenti).

Tips for comparing home improvement loans

When you’re comparing loans, you should consider the following:

Loan type: Think about whether you want to risk an asset when you consider a secured loan versus an unsecured loan.
Loan purpose: If you want to make sustainable improvements, you may want to look into a green loan. If you want to make various improvements, look for a loan that gives you the flexibility to do so.
Loan costs: Consider the comparison rate and the interest rate. Note all the fees included and the rate when making your calculations. A lower rate doesn’t always mean a cheaper loan, as it may come with high fees.
Repayment options: Will the repayment plan affect your cash flow? If you get paid monthly, look for a lender which allows you to make monthly repayments.
Flexibility and additional features: Look into whether you have additional features like extra repayments and redraw facilities. Are these features free, or do you have to pay for it?

The right loan will depend on the kind of work you're doing. A personal loan can be a good fit for smaller or cosmetic jobs, because it's usually quick to arrange and doesn't need your home as security. For larger structural renovations, topping up your home loan may give you a lower interest rate. Keep in mind that spreading the cost over a longer term can mean paying more interest overall, and your home is used as security. If you're making energy-efficient upgrades like solar panels or batteries, it's worth checking whether a lender offers a green loan with a discounted rate.

Am I eligible for a renovation loan?

The eligibility criteria between lenders differs. Most renovation loans require that you are over 18 years of age, be a citizen or permanent resident of Australia, have a good credit score and be in regular employment.

Comprehensive requirements often include providing proof of identity through a driver's licence or passport, recent payslips or tax returns to verify income stability and a detailed breakdown of existing debts. For equity-based loans, you will also need a property valuation report and potentially fixed-price building contracts if structural changes are planned. Lenders generally require you to have been in your current role for at least three to six months and have no history of bankruptcy within the last five years (Source: Great Southern Bank and Mortgage Street).

You will need to provide the following documents for a home improvement loan. Depending on the lender, you may be asked for more:

Proof of identification. An Australian driver’s licence or passport.
Proof of address. This might be a utility bill or bank statement.
Proof of income. This could include your employer’s name and contact details.
Details of assets. You will need to show proof of ownership of your home and other assets.
Details of liabilities. You will need to declare any outstanding debts, such as other loans or credit card debts.

Our expert says: Check out green incentives

"If you want to make green upgrades to your home you might be able to benefit from some financial assistance, which could bring your loan value down.

Each state has different incentives and rebates. They include discounts on solar batteries and solar panels, as well as grants for electric vehicles. The ACT and Tasmania also offer 0% interest loans to purchase energy efficient products. So it's definitely worth checking out the offers in your state. See Finder's full guide on green personal loans here."

Rebecca Pike

Editor, Money

How can I apply for a renovation loan?

Decide loan purpose: Work out what type of loan to apply for, how much you need to borrow and what you can afford.
Compare products: Start comparing lenders and loan products. Don't forget to compare interest rates, fees and eligibility criteria.
Select a lender: Click “Go to site” to be directed to the lender’s page, or “More info” if you want to read about the lender.
Gather documents: You'll typically need personal identification, payslips and bank statements. Prepare these early to speed up the application process.
Apply: Most lenders have their applications online.

Why compare personal loans with Finder?

Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)

Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest.

Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.

Frequently asked questions about home renovation loans

All lenders, regardless of the loan you apply for, will consider your credit history. If you have a good credit history, you should be able to get a loan without difficulty, granted you can afford it.
Most lenders will ask for details about your income, employment, current liabilities, ongoing debts and defaults. They are also unwilling to lend if you have been or are currently bankrupt. It may also be difficult to get a renovation loan if you’re currently facing financial hardship.
Keeping costs down can maximise your potential value increase. You can do this if you:
1. Add value with creative fixes. Homebuyers pay special attention to a home's bathroom and kitchen. You could make a run-down bathroom or kitchen more functional and pleasant, while keeping costs down. With cosmetic renovations, it may be best to limit the changes to what is in plain view.
2. Keep a tab on expenses. Plan and budget ahead of time, and stick to it. When budgeting, you should take into account the cost of materials as well as labour. Make sure your budget accounts for all the renovations you need to make.
3. Consider DIY. DIY can help you keep costs in check. This is because you will not be paying for additional labour, which can be expensive in Australia. However, you need to have access to the right tools and skills. A bad DIY job will do more harm than good to the value of your property, so if you're not confident, don't risk it.
4. Compare your alternatives. Take the time to shop around and negotiate. You could potentially save money on supplies and labour. It's also important to apply the same principle to home improvement loans. The comparison table and tips in this guide can help you find the best deal for you.
5. Think long-term. This is especially important if you plan to continue living in your home. This is because you stand to personally benefit from it. Energy-efficient additions can be a plus (for your bills and the environment). By opting to go green, you may also qualify for certain rebates.
Yes, if you own your home it is often possible to use your equity for renovations. One option is to apply for a top-up of your existing home loan, which increases its size and you withdraw the additional funds to renovate.
Another viable option is using your equity to take out a second loan. This is often the more favourable option if your current home loan is on a fixed rate.

Sources

Thank you for your feedback!

Written by

Rebecca Pike

Editor, Money

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Rebecca Pike is Finder’s money editor, with over 7 years of experience in mortgages and personal finance. A frequent TV and radio commentator, she frequently appears on Sunrise and 7News, Today and 9News, as well as Sky News, Channel 10 and across radio and print. Rebecca previously served as Editor of Mortgage Professional Australia. She has a Master’s degree in Journalism as well as ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, which comply with ASIC guidelines. See full bio

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Rebecca has written 253 Finder guides across topics including:

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4 Responses

DarrenSeptember 25, 2017

I wish to borrow $80000 on a low rate personal loan. Can you recommend some lenders, please?

LiezlSeptember 25, 2017

Hi Darren,

Thanks for reaching out to Finder.

While we are unable to recommend a particular lender or loan offer, you can use our comparison table with a list of low interest rate personal loans. Simply enter the $80,000 under the amount you’d like to borrow followed by your repayment term then press “Calculate”. Our table can help you see a side by side comparison between different lenders based on the interest rate, comparison rate, and your projected monthly repayment.

Once you have chosen a particular lender, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with your loan application or get in touch with their representatives for further assistance.

Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

Cheers,
Liezl

MurphyFebruary 4, 2015

Please I need to apply for a personal loan for a personal matters.

Finder

ElizabethFebruary 4, 2015Finder

Hi Murphy,

Thanks for your question.

You can use our Loan Finder to find the right personal loan for you. Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.

I hope this has helped.

Thanks,

Elizabeth

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