With interest rates at all time lows and no imminent signs of a change in a direction, now is a good time to renovate in order to prepare your home for an inevitable upswing in both demand for homes and house prices. The banks are beginning to ease up on the incredibly stringent lending criteria we have seen last year which is a sign that they are confident in the future of the economy and of course the property market.

The reason we say now as a good time to start is that contractors have been under pressure with fewer consumers qualifying for finance to renovate their homes and your ability to negotiate a good price is at it’s best right now, but what are the finance options available and what is the best and most cost effective way to finance a renovation.

Bathrooms and kitchens are the most commonly renovated rooms in the house and can be very expensive unless you follow these simple ideas too improve your kitchen or bathroom, particularly if you are selling your home.


If you have been saving and have the cash available consider what you have been saving for. If your cash is in investments like unit trusts or mutual funds, you may be best off leaving it intact with the stock market reacting to the end of the recessionary influences.

Credit card

Credit cards bear some of the highest interest unless you settle them within the interest period, in which case you could effectively get short term finance at almost 0% interest for 25 days. If the renovation you are anticipating is not a very large amount of money, this is an option, otherwise put away your plastic.


If you have funds available in your bond this is the best way to finance a renovation or you can apply for an additional amount on your bond based on the future value of your home after the renovation. Ensure that your credit rating is in good standing and use a bond originator to secure your the best rate.