Using your home equity to fund renovations

Home equity release loans can be a powerful tool for homeowners looking to fund renovations, offering unique advantages over other funding sources. Renovating a home often requires a significant financial investment, but with careful planning and the right financing, it's possible to enhance your living space and increase the value of your property.

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What are the benefits?

Using your home equity to fund home renovations and maintenance can offer some unique benefits over other forms of renovation finance:

1

Preserve savings and cash while adding value and enjoyment to your home

Home renovations can be expensive, so it’s not always easy to find the funds to make the changes you want. While it makes sense not to over capitalise, a carefully planned kitchen or bathroom renovation will not only enhance your lifestyle, it can also add significant value to your home.
2

Flexibility to access the funds only when you need them

A key advantage of some home equity release loans is the flexibility to drawdown the funds as a line of credit. This means that you only access the funds when it’s time to pay the builder or supplier, and with Inviva’s Equity Empower loan you don’t pay interest until you need the funds.
3

Access to larger sums compared to unsecured credit options

Home equity release loans typically allow you to borrow larger sums of money compared to personal loans or credit cards. The amount you can borrow depends on the equity you have in your home and the age of the youngest borrower. With a larger amount of funding at your disposal, you could potentially undertake a more extensive renovation project without worrying about exceeding your credit card limits or depleting your savings.
4

Lower interest rates

Home equity release loans often come with lower interest rates compared to some other types of consumer loans, such as personal loans or credit cards. This is because the loan is secured by your home, which reduces the lender's risk, making a home equity release loan potentially a more cost-effective option for funding your renovations.
5

Potential tax benefits if renovating an investment property

In some cases, the interest paid on a home equity release loan may be tax-deductible, depending on the purpose of the loan. If you use the funds to improve your home, you may be able to deduct the interest charged to the loan, reducing your overall tax liability. It's important to consult with a tax advisor to understand the specific tax implications of your situation.
In summary, a home equity release loan can be a great way to fund a renovation, home maintenance or to futureproof your home, while preserving your savings and cashflow. However, as with any major financial decision, it’s essential to carefully consider your circumstances and future needs and to assess if a home equity release loan is the right choice for you. With proper planning, you can turn your renovation dreams into a reality while maximizing the value of your investment.

Meet Frank and Cecilia*

Frank 63, and Cecilia 62, own and run a small business in Sydney’s inner west. As part of their plan for retirement, the couple bought a small investment property in Shellharbour with a view to enjoying seaside life in retirement and to be closer to their daughter, Rebecca and her partner and infant children.

Frank and Cecilia plan to sell their business and their Sydney home when they retire in a few years and move to Shellharbour. Before doing so, they want to renovate the seaside property with a new kitchen and add extra bedrooms to host their grandkids or, when the time comes in future, in-home nursing staff.

Frank and Cecilia’s assets are largely tied up in the business and two properties. With building costs on the rise, Frank and Cecilia realised they didn’t have enough free cash to go ahead with the build and thought they would have to scale back or delay the renovation.
Cool couple enjoying their own home
Cool couple enjoying their own home

How Inviva helped

Frank and Cecilia came to us after hearing about Inviva from friends. They took out an Equity Empower variable rate loan of $240,000, secured against their Sydney home. They plan to repay the loan when they retire.
“The loan has given us the confidence to go ahead with the renovations, and the peace of mind to know that even if things get tight with the business in the next few years, we won’t end up cash-strapped. We’ll have plenty of money available to repay the loan when we eventually sell the business.” - Frank
*Case studies and quotes are illustrative of and inspired by some of our customers’ experiences.

Why choose Inviva?

  • Expertise & support — our team has years of experience and offers personalised support
  • Transparent costs — no hidden fees, and you know all costs upfront
  • Flexible options — choose how you access the funds - as a lump sum, regular income payment or a line of credit - and enjoy the flexibility to repay early with no early repayment fees
  • Quick access — fast approval and disbursement mean you get funds when you need them
Explore how a home equity release loan with Inviva can help you enjoy a more secure and fulfilling retirement.
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Free Home Equity Release Loan Guide

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