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

Funding a renovation often involves a home renovation loan, which can be a mortgage top-up or a separate personal loan. A mortgage top-up is usually the best option, offering lower interest rates by borrowing against your home's equity, though it requires a fixed-price building contract.

Alternatively, an unsecured personal renovation loan has much higher interest rates, shorter terms, and lower borrowing limits. These are riskier and depend heavily on your creditworthiness, so always explore all options before committing.