Fund the improvements without putting the project on hold.
Renovations, repairs and home upgrades do not always wait for the perfect timing. Loan Location can help you compare whether a personal loan could provide the funding you need while keeping the repayment, fees, loan term and total cost clear.
Quick answer
What is a home improvement personal loan?
A home improvement personal loan is a personal loan used to fund renovations, repairs or upgrades to a property. It can be useful where the project cost is larger than available savings but a home loan refinance or top-up may not be the preferred option.
Depending on the lender and borrower, the loan may be secured or unsecured and may offer fixed or variable repayments.
What can it fund?
Common home improvement projects
Personal loans can be used for a wide range of home-related projects, depending on lender policy and the amount being borrowed.
Kitchen upgrades
Cabinetry, appliances, benchtops, lighting and other kitchen improvement costs.
Bathroom renovations
Fixtures, waterproofing, tiling, plumbing and bathroom upgrades.
Painting & flooring
Interior or exterior painting, carpet, timber, vinyl or other flooring work.
Essential repairs
Repairs that cannot be delayed, including urgent maintenance or replacement work.
Solar & energy upgrades
Solar panels, batteries, insulation or other approved energy improvements.
Air conditioning
Heating, cooling and climate-control installations or replacements.
Outdoor improvements
Landscaping, fencing, decking and other exterior property upgrades.
General renovations
Smaller or staged projects that do not require a full construction facility.
Why some borrowers use them
When timing matters
Many home improvement projects require money before work begins. Builders, trades and suppliers may require deposits, progress payments or full payment for materials and equipment.
Personal loans may sometimes be faster to arrange than a home loan top-up or refinance, which can involve valuations, mortgage documentation and longer processing timeframes.
Speed should not replace comparison: faster funding can be useful, but the interest rate, fees, loan term and repayment still need to make sense.
Funding pathways
Personal loan or home loan for renovations?
Homeowners with available equity may have more than one way to fund improvements. The right structure depends on the project size, timing, available equity, repayment capacity and the cost of each option.
Potentially faster and simpler
- May not require a property valuation
- Can suit smaller or medium renovation amounts
- Usually has a shorter repayment term
- Interest rates are generally higher than home loan rates
- May provide funding sooner for time-sensitive work
Potentially lower-cost borrowing
- May involve redraw, top-up, refinance or equity release
- Home loan rates are generally lower than personal loan rates
- May require valuation and more documentation
- Can take longer to arrange
- Longer terms can increase total interest if not managed carefully
Sometimes the answer is timing: some borrowers may use a personal loan initially and later review whether refinancing or restructuring makes sense. That approach should be considered carefully because it creates more than one lending step.
Before you borrow
Important things to consider
Higher interest rates
Personal loan rates are generally higher than home loan rates, so the borrowing cost should be compared carefully.
Shorter loan terms
A shorter term may help clear the debt faster but can also create a higher regular repayment.
Fees and charges
Application, establishment, account and early repayment fees may affect the overall cost.
Multiple loan commitments
If the personal loan sits alongside a home loan, the household budget needs to comfortably support both repayments.
Other funding options
Alternatives to a home improvement personal loan
Personal loans are only one way to fund home improvements. Depending on the property and your financial position, other options may be worth comparing.
Redraw or offset funds
Existing savings or available redraw may allow the project to be funded without taking out a new loan.
Home loan top-up or refinance
Available property equity may be used to increase home lending, subject to valuation, serviceability and lender approval.
Staged savings
Where timing allows, completing the project in stages may reduce the amount that needs to be borrowed.
How Loan Location helps
Start with the project, then choose the funding
You do not need to know in advance whether a personal loan, redraw, home loan top-up or refinance is the right answer.
Loan Location can help compare the available pathways based on the project, amount required, timing, repayment comfort and your broader lending position.
Define the project
Work out what needs to be done, the estimated cost and when the funds are required.
Review your position
Consider income, expenses, existing debts, available savings and property equity.
Compare funding paths
Look at suitable personal lending and home lending options where relevant.
Choose the structure
Compare repayments, rates, fees, timing and total cost before proceeding.
Common questions
Home improvement personal loan FAQs
Can I use a personal loan for renovations?
Potentially. Personal loans may be used for approved renovation, repair and home improvement purposes, subject to lender policy and assessment.
Is a personal loan better than refinancing for renovations?
Not automatically. A personal loan may be faster to arrange, while home lending may offer a lower interest rate. The project amount, timing, available equity and total cost should be compared.
Can I use a personal loan for urgent home repairs?
Potentially. Personal lending may be considered where repairs cannot be delayed, subject to approval and the lender accepting the loan purpose.
Can I refinance the personal loan into my home loan later?
Potentially. A future refinance or home loan top-up would still be subject to property valuation, serviceability, lender policy and approval at that time.
Can I use a personal loan for solar or air conditioning?
Potentially. These may be acceptable home improvement purposes depending on the lender and product.
How much can I borrow for home improvements?
The amount available depends on the lender, your income, expenses, liabilities, credit position, loan purpose and overall serviceability.
Ready to get the project moving?
Tell Loan Location what you are improving, how much you expect it to cost and when you need the funds. We can compare suitable funding approaches and explain the differences before you decide how to proceed.
Note: This is general information only and does not take into account your personal objectives, financial situation or needs. Lending criteria, rates, fees, approval timeframes and product availability can change. Approval remains subject to lender assessment. Where home equity, refinancing or other property lending is being considered, additional lender requirements may apply.