Browse Forums Home Finance 1 Nov 29, 2015 6:23 am We built our home 4 years ago and now we're planning to increase our home loan e.g another $40-50k to add on top. We've done a few improvements but it was gradual as we had to have enough savings before spending them for improvements. We're thinking that instead of waiting to save for another 5 years to complete our upgrades including small pool, we can borrow an extra and finish them quickly. Has anyone done this and do you think is it worth it? Thanks and appreciate your response and advice. Re: Home Improvement Loan 2Nov 29, 2015 7:54 am Hi, I look after lots of clients who do this and the ultimate choice is yours - would the increased repayments be affordable? Will it enhance your life? Are you happier to wait? In my circumstances I think the kids benefit from having a pool more when they're smaller so I chose to upgrade for a pool, personal circumstances. If your loan is 4 years old it's not impossible in current climate you can get a broker to find you a better interest rate where the savings might cover it. The flip side is over capitalization - not an issue if you have no short term plans to sell and rarely an issue in capital cities. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Home Improvement Loan 3Nov 30, 2015 9:45 pm As Bec mentions, it's really personal preference. If you think you will benefit from it now, then it may be a wise investment. In regards to increasing your loan to cover the improvements, it might be easily done if you have enough equity in your current property and you qualify servicing wise. A decent broker can help you with this. Cheers Tom Re: Home Improvement Loan 4Aug 17, 2016 12:05 pm Thanks plc and bec. I read your response but didn't get the chance to reply due to busy schedules. Got excited with your positive comments:) Yes we have proceeded with the home improvement loan and were able to use the equity. We're building our swim spa soon:) It's a good timing with the low interest rate at the moment but if ever this will increase in the next year or so I think we are still fine. We only borrowed what we think we are able to repay. Thanks for the inputs. Very helpful. Re: Home Improvement Loan 5Aug 19, 2016 9:43 pm Great to hear - I bet you don't look back! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Hi, Looking to add an ensuite to one of the bedrooms and make it a Master BR. Please see the attached current floorplan. Need suggestions on what's the best way to do… 0 7545 The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 20085 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 36595 |