Home renovation loans: How to get one + how they work

Financing a renovation typically involves a mortgage top-up or a separate personal renovation loan. A top-up adds to your home loan, offering lower interest rates but often requires a fixed-price building contract and sufficient equity.

Personal loans are an alternative but have significantly higher interest rates, shorter terms, and smaller borrowing limits. It is crucial to explore all options, secure a fixed-price contract, and avoid overstretching your budget to prevent financial stress and an unfinished project.