Home Renovation Loans

Because they’re the same as any other personal loan, it’s important to compare home improvement loans just as thoroughly. Fortunately, you can do this right here with Savvy. With reputable lending partners from around Australia, you can quickly find and compare some of the best offers on the market right now so you can choose your ideal loan with more confidence. Some of the key ways to compare loans include:

• Loan amount: you’ll first need to make sure the lenders you’re looking at can approve you for the loan amount you need. Although you’ll have the potential to borrow as much as $75,000, some lenders will cap their loans at just $50,000 instead. It’s especially important if you find yourself looking at larger amounts above this mark or smaller loans of $5,000 or less, as these are the areas where lenders are most likely to differ.
• Interest rate: one of the most important areas to nail down on your loan is the best interest rate you can manage, as this is the most significant cost factor on this type of finance. Your rate will be set based on a variety of variables, such as the size of your loan, your credit rating and the stability of your income, among others, so it’s likely to differ substantially between borrowers. Even a small difference in rate can save you hundreds of dollars, so it’s crucial to compare and find the lowest available to you.
• Fees: many loans also come with a range of extra costs attached that eat into your money even further. The most important to look for are establishment (up to $595) and ongoing (up to $10 per month) fees, although both of these charges are commonly not imposed by lenders. Just like interest rates, seemingly small differences between costs can make a difference. For instance, you’ll save $300 on your five-year loan if you opt for a deal which comes with a $5 ongoing fee instead of $10. 
• Loan term: you will typically be able to repay your loan over one to seven years. Although shorter loan terms are likely to cost less overall, it's important not to overburden yourself with loan payments and put yourself at risk of financial stress or default. Look for a term that suits your needs. If you want to pay off your loan in 12 months, for example, you can rule out any lenders that impose three-year term minimums.
• Early repayments: try to lock in a loan that allows you to pay more than the minimum required amount each month without penalty, as this can help you slash the total cost of the agreement in the long run. The shorter your loan term, the faster your outstanding loan debt decreases which, in turn, decreases the interest charged at a quicker rate. For instance, you could save $500 and trim five months off your agreement by paying an extra $100 each month on your $20,000, three-year loan at 10% p.a.
• Other features: there are other handy features you may gravitate towards as a borrower when comparing loan options. Redraw facilities are becoming more common on personal loans, enabling you to access the extra funds paid throughout your loan term and withdraw them for whatever purpose you need. These are useful if you decide to conduct more renovations before the end of your loan term. Also, you should look to ensure you can make your payments on your preferred schedule, either weekly, fortnightly or monthly, to suit your needs.