How to Finance Your Home Renovation in New Zealand

back to article list

Money. It’s one of the biggest considerations when it comes to home renovations. For some, it can be a struggle trying to find a balance between a good quality renovation and making it work within your budget. Financing provides a way forward, so that you can have your ideal renovation, without sacrificing on quality.  

Refresh Renovations provides the best possible service when it comes to advising you on how to achieve your renovation within your means. We provide a fixed-quote before any work begins and offer a customer portal where you can monitor your project finances.

If you need a little help getting the job done, here is our guide to financing your renovation.

What do I need to do before I start my renovation?

If you are considering a home renovation, one of the first things to do is consider how much it is going to cost. This will be highly dependent on your budget, the size of the renovation and any council permits that it may require.

Common renovation types and costs:

  • Kitchen: $20,000 - $100,000+
  • Bathroom: $20,000 - $50,000+
  • Bedroom/s: $2,000 - $80,000+
  • Walk-in-wardrobe: $10,000 - $20,000+
  • Ground floor extension: $60,000 - $200,000+
  • Loft conversion/second storey addition: $200,000 - $450,000+
  • Re-cladding: $40,000 - $400,000+
  • Re-roofing: $8,000 - $30,000+

The best way to work out an estimate for your specific project is to arrange a consultation with a renovation specialist. Once you have done so you will need to ask yourself whether this estimate is achievable and set yourself a budget.

Setting your budget

When setting your budget, keep in mind that even the most meticulously planned renovations can come up against unexpected work and costs. It is important to make sure you leave room in your budget for this.

Adding value to your renovation

According to financial market ​Harmoney, New Zealand house prices have gone up by 70% since 2012. If you are considering selling your home, a renovation could bump its value up significantly. The New Zealand Herald recently published an article exploring simple ways to add value to your property. They shared that “strategic renovations”, specifically bedroom additions and home security installations, can significantly add to the value of your home. Simple changes, such as new paint and sticking to neutral colours is also recommended as a cost-effective way to add value.

Whatever your plans are, ensure you talk to the right people before going ahead. A real estate agent will be able to advise you on the best way to add value to your home and a renovation specialist can guide you on how much money to set aside.

How can I finance my renovation project?

There are many finance options available, including bank loans and finance company loans. Another option is to apply for a home loan through a reputable financial marketplace; a platform where “borrowers” and “investors” can connect. Refresh works closely with financial marketplace Harmoney, giving homeowners a range of options to choose from to suit their home renovation requirements. You will find that your credit score may impact the amount you can borrow as well as the interest rate that you pay on your loan. If you want to know more about things that affect your credit score, check out Harmoney's article on 5 things you didn't know impacted your credit score

If you're a living in New Zealand, and you want to improve your credit score in the fastest way possible, download the free ebook: 10 Ways to a Better Credit Rate.

Home improvement financing

Refresh’s partnership with Harmoney allows customers to receive support in all areas of their renovation. Your Refresh specialist will provide a valid cost estimate and fixed-quote before any building work begins, so that you know exactly how much to apply for, should you be interested in applying for a loan.

Harmoney provides a peer-to-peer marketplace where you can apply for up to $70,000 in home improvement loans. Here, you can seek out home loans from retail and institutional investors.

Becoming a “borrower” involves applying through an online application. Once approved, potential lenders can choose to provide you with a loan. The vast majority of Harmoney loans are fully funded within 24 hours. You have the option of having the loan deposited into your bank account or it can be used to pay off consolidating debts.  

How can I keep track of my renovation costs?

Working with Refresh Renovations will provide you with an online portal where you can keep track of your renovation costs at all times. You can make online payments, view photo updates and approve selections on your project. This makes it simple to keep up with payments.

What finances do I need to focus on during/after my renovation?

Before you put your feet up and enjoy your well earned new space, make sure you have spoken with your insurance company so that your cover is up to date. Check with your renovation specialist to see if your renovation comes with a Master-Builder Guarantee.

Once your renovation is complete, you can focus on paying off your loan. Harmoney gives you the option of paying off your loan weekly, fortnightly or monthly. With Harmoney, your interest rate will be personalised according to your circumstances.

Get in Touch

Would you like to find out more about what costs will be involved in your home renovation? Get in touch with a Refresh Renovations specialist for a free consultation.

 

*Please note: costs are a rough estimate only. Professional advice should be sought for individual project estimates

previous article | next article