Got that Renovating Bug?

If you intend to renovate at the time you purchase your property, it may be possible to borrow the necessary funds to cover the intended improvements at settlement (with mortgage insurance if necessary). 

The property can then be revalued and the loan reassessed when the works are completed – so that the debt to equity ratio returns to the level that no longer requires mortgage insurance.

As most home buyers prefer to live in a property for some time to better plan the renovations and optimise the use of space, a second loan can be arranged.

Alternatively, a new loan, which consolidates the original mortgage and improvements, can also be arranged.


Keep the cost of your renovations in proportion to your property’s market value. If you spend too much, your home may be worth substantially more than the average for your area, becoming “over-capitalised”. If you sell your property, you may not recover all your money.

When property prices are stable or falling, it is easy to over-capitalize. Your Pacific1 Finance broker can help provide you with information and loan pre-approval, which will make the transition into your new home worry free.