Marcus and Jo have put up with the same kitchen for years. The benchtop is chipped, two cupboard doors won’t close properly and the tapware drips. A tradesperson quotes $6,800 to fix it all up, and they’d like to get it done before the end of the year.
Marcus and Jo are an example, not real customers.
Wondering how to finance a home renovation? You have a few ways to pay for it: savings, a payment plan from the tradesperson, a credit card, a loan, or help from family. A home renovation loan spreads the cost into repayments, but it’s only worth it if you can meet them comfortably. Fundo loans start from $500 and go up to $10,000, so a Fundo loan suits smaller renovations and repairs, not a full rebuild. How much you’re offered depends on your application, and approval isn’t guaranteed.
Is it a renovation or a repair?
The answer changes how you plan for it.
- Renovations are planned. A new kitchen benchtop or a bathroom update gives you time to compare quotes, save part of the cost and pick your moment.
- Repairs often can’t wait. A burst pipe, a broken hot water system or a leaking roof gets worse the longer you leave it, so you may need the money sooner.
Renting? Urgent repairs are generally your landlord’s responsibility under state and territory tenancy laws, so tell your landlord or agent before you pay for anything yourself.
First, get the quote right
Before you decide how to pay, get clear on what you’re paying for.
- Get two or three quotes in writing. Each should list the work, the materials, the labour and anything that isn’t included.
- Check the licence. Plumbing, electrical and gas work generally has to be done by a licensed tradesperson, and the rules vary by state. Ask for the licence number and check it with your state’s licensing body.
- Allow a buffer. Home jobs can cost more once the work starts and the tradesperson sees what’s behind the wall. Ask what could push the price up.
- Check your insurance first. Home insurance may cover sudden damage, such as storm damage or a burst pipe, but usually not wear and tear. Check your policy and your excess before you pay.
- Ask what’s urgent and what can wait. Some work is about safety and some is about looks. Do the urgent part first.
Ways to pay for a home renovation
| Option | Good for | Watch out for |
|---|---|---|
| Savings | No interest and nothing to repay | It uses up your buffer, so rebuild it afterwards |
| Payment plan from the tradesperson or retailer | Spreading the cost if one is offered | Check any fees and what happens if you miss a payment |
| Credit card | Paying straight away if you have room on the card | Interest can add up if you carry the balance |
| Personal loan | Spreading the cost over regular repayments | Interest and fees add to the total, and you need to be able to repay |
| Home loan redraw or top-up | Homeowners with a mortgage and available funds | Your home is the security, and a long term can mean paying more interest overall |
| Insurance claim | Sudden damage that your policy covers | Check the excess and what’s excluded before you rely on it |
| Family or friends | Often no interest | Agree the terms clearly so it doesn’t strain the relationship |
There’s no single right answer. The best option is the one that covers the bill and fits your budget without putting the rest of your month under pressure.
Is a loan the right choice for a renovation?
A loan can help spread the cost of a home job, but it’s still money you have to pay back. A few questions help you decide.
- Can you cover it from savings? If you can, you avoid interest altogether.
- Can you do it in stages? Doing the most important part first can mean a smaller loan, or none.
- What repayment fits your budget? A repayment you can meet comfortably matters more than the amount.
- What’s the total cost? Look at interest and fees, not just the repayment.
- Can you borrow less? Borrow the amount on your quote, not a round number. A smaller loan means smaller repayments.
How Fundo can help
If you’re looking at a renovation loan, Fundo lends from $500 up to $10,000, depending on your application. You can apply online or in the Fundo app. As a licensed credit provider, we assess whether a loan is suitable before we offer it. That means the amount you’re offered can be lower than the amount you ask for, and approval isn’t guaranteed.
If your job will cost more than $10,000, such as a full kitchen or bathroom renovation, Fundo isn’t the right fit. A larger renovation is usually better paid for with savings, a home loan top-up or a lender that offers larger loans. If it’s a smaller job, borrow what the quote says and no more.
Keep the cost down
- Do the urgent work first. Spread the rest over time if you can.
- Compare quotes for the same scope. A cheaper quote that leaves things out isn’t cheaper.
- Don’t DIY what needs a licence. Unlicensed work can be unsafe, can void your warranty and can cause problems with your insurance.
- Keep your paperwork. Receipts, warranties and licence details matter if something goes wrong later.
Frequently Asked Questions
Can I get a loan for a home renovation?
Yes, you can apply for a Fundo loan to help pay for a home renovation or repair, subject to approval. How much you’re offered depends on your application, and approval isn’t guaranteed.
How much can I borrow for a renovation?
Fundo loans start from $500 and go up to $10,000, depending on your application. If your renovation will cost more than $10,000, Fundo isn’t the right fit.
Can I use a personal loan for a home renovation?
You can apply to use a Fundo loan for personal home renovations or repairs. Loans over $2,000 can’t be used for business purposes, so a loan isn’t for work on a property you’re renovating to sell or rent out.
How do I finance a renovation?
Common options are savings, a payment plan from the tradesperson, a credit card, a personal loan, a home loan top-up or help from family. Compare the total cost of each, including interest and fees, and choose the one with repayments you can meet comfortably.
Should I save up instead?
If the work can wait, saving first costs you no interest, and doing it in stages can mean borrowing less. If it can’t wait, such as a burst pipe or a broken hot water system, a loan may help you get it fixed now. Only borrow what you can repay comfortably.
What should I do before I apply?
Get your quotes in writing, check whether your insurance or landlord covers any of it, and work out what you can comfortably repay from each pay. Then see what you could borrow.
The Bottom Line
A renovation is a big spend, and repairs rarely come at a good time. Get clear quotes, check whether insurance or your landlord covers the cost, and choose the way to pay that fits your budget. If a loan makes sense, Fundo lends from $500 up to $10,000 and you can apply online or in the app.
Want to find out more?
Disclaimers
Credit provided by Fundo Loans Pty Ltd ACN 604 639 143 Australian Credit Licence 491418 to approved applicants only. Terms, conditions, fees, charges and eligibility criteria apply. See fundo.com.au
The information provided on this website is general in nature and for information only. It is not intended to be relied upon as advice. Before making a decision about any of our products, you should seek your own independent advice and refer to the terms and conditions to ensure that the product is appropriate for your particular objectives, financial situation and needs. See the relevant Target Market Determination before applying.
