ACL 390611 | MFAA Member | Established 2005
Renovation Loans.Matched to the Size of the Job.
A new kitchen and a second storey are not the same borrowing problem. One is usually better funded by releasing equity or a personal loan. The other needs a facility that releases funds in stages against a builder’s fixed price contract. Tell us the scope and the budget and we will price the routes against each other before you commit to any of them.
15 minutes, ideally before you accept a quote. Bring the scope and the budget if you have them. No credit check, no paperwork, no obligation, and we will tell you which structure the job actually needs. Lenders pay us a commission on settlement and we disclose it in writing before any work begins.
Intellect Finance – Renovation Loan Brokers
Independent since 2005 | ACL 390611What Is a Renovation Loan and How Does It Work?
A renovation loan is not a single product. It is one of four structures: releasing equity in your existing home loan, refinancing and taking cash out, a construction facility that releases funds in stages, or an unsecured personal loan. Which one suits depends on the size of the job and how much of it is structural.
With any home improvement loan, the size of the job decides the structure more than anything else. A kitchen and two bathrooms is usually funded from equity, because the amount is small against the value of the property and a lender has no reason to supervise how it is spent. A second storey is usually funded by a construction facility, because the work is large enough that a lender wants to release money against verified progress and value the property on what will be standing at the end.
The second question is what each structure lends against. Equity is measured on the property as it stands today. A construction facility is measured on the finished value, which is why a structural renovation can be funded beyond the equity you hold now. Building something that does not exist yet is a different decision, covered on the construction loans page.
Common Situations
What People Are Usually Renovating
Six situations cover most home renovation loan enquiries. The work is different in each, and so is the structure that suits it.
A kitchen or a bathroom
The most common renovation and usually the simplest to fund. A top-up or a redraw on your existing loan is normally enough, with no stage inspections and no builder verification. If equity is thin, a personal loan covers it without touching the mortgage. See unsecured personal loans.
Opening up the back or adding a room
The middle ground, and where most people pick the wrong structure. Removing a load-bearing wall makes it structural even if the budget is modest. Whether a lender treats it as major decides whether equity is enough or a staged facility is needed.
Adding a second storey
Almost always a construction facility. The cost usually exceeds the equity you hold today, and a lender will want a licensed builder, a fixed price contract and a valuation on what the house will be worth when the new level is finished.
A structural rework or a heritage home
Underpinning, restumping, a full rebuild of the rear. These are the jobs where scope moves once walls come down, so a contingency inside the facility matters more than the headline figure. Some lenders are markedly more comfortable with heritage work than others.
Renovating an investment property
The ATO treats a repair and an improvement differently, and where both are done together you can only claim the repair if its cost can be separated, so ask for an itemised quote. Fixing damage that was already there when you bought cannot be claimed straight away. See investment loans and speak to your accountant before work starts.
You are doing the work yourself
In New South Wales you need an owner-builder permit when the work is worth more than $10,000, needs council or certifier approval, and you do or supervise it without a licensed builder. Fewer lenders will fund it, and a sale within seven and a half years must disclose the permit.
Social Proof
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Joseph Sukkar
Principal Broker · ACL 390611
Who You’re Dealing With
Built on 25 Years in Australian Finance
Joseph Sukkar started in finance in 2000 and founded Intellect Finance in Penrith in 2005. Since then the team has arranged more than 6,500 loans for clients across Australia, from first homes to complex commercial and asset finance.
Residential lending sits with Moufid, our Head of Residential Lending. On a renovation the useful work happens before a quote is accepted: sizing the job, working out whether a lender will treat it as cosmetic or structural, and pricing the routes against each other while every option is still open. The expensive mistake is funding a small job through a structure built for a large one, or the reverse, and both are easier to avoid than to unwind.
100+ Lenders Including
Accreditation with a lender is not an endorsement by it. Which lender suits you is decided by your file, not by who is on this list.
Got a Quote but Not a Loan Yet?
Talk to us before you accept it. Fifteen minutes, no credit check.What Actually Decides It
Four Ways to Fund a Renovation and What Decides Between Them
The difference between the four structures is not mainly the rate. It is what the lender will lend against, whether it supervises how the money is spent, and how much effort the structure costs you. Six things decide which one fits.
An equity release or a top-up on your loan
Your existing lender increases the loan against the value you already hold. It is the simplest route for cosmetic work: one valuation, no stage inspections, and the money is yours to spend on whichever trades you choose. The limit is the equity you hold today, and interest usually runs on the full amount from the day it is drawn.
A cash-out refinance to a different lender
The same idea, moved to a lender that will value the property higher, lend more against it, or price the whole loan better. Worth it when your current lender will not release enough or your rate has drifted. See cash-out refinance.
A construction facility with staged drawdowns
Funds are released to the builder stage by stage after the work is verified, and the property is valued on what it will be worth when the work is finished. It is the only route that lends against what the property will be worth when the work is finished, and it brings a fixed price contract, a licensed builder and inspections with it.
An unsecured personal loan
Nothing is secured against your home and it is cleared over a few years rather than the life of your mortgage. It usually costs more per year than borrowing against equity, but on a small job it can cost less in total, and it is the answer when there is not enough equity yet.
What the valuer counts and what it does not
What a renovation adds to a valuation is not the same as what it costs, and the gap can run either way. Equity routes are sized on today’s value, so what the work adds does not change how much you can borrow. On a construction facility the finished value is the whole basis of the loan, which is why the scope has to be priced before a structure is chosen.
The contract rules apply to renovations too
In New South Wales work over $5,000 including GST must be under a written contract and the deposit is capped at 10 per cent. Over $20,000 the contract needs a progress payment schedule, you get five clear business days to cool off, and the builder must hold Home Building Compensation cover before taking any payment.
Checked 20 September 2026. The written contract threshold, the 10 per cent maximum deposit, the cooling-off period, the progress payment schedule requirement and the Home Building Compensation Scheme position are published by the NSW Government, and the owner-builder permit threshold and sale disclosure rule in its owner-builder guidance. The repair and improvement distinction is from the Australian Taxation Office, as is the treatment of interest on money borrowed to renovate a rental. The 80 per cent lenders mortgage insurance threshold is from ASIC Moneysmart and Best Interests Duty from ASIC Regulatory Guide 273. Every other state and territory has its own home building laws and thresholds. We are not solicitors or tax advisers. Have a building contract reviewed by your own solicitor and your tax position confirmed by your accountant. Everything else on this page is described in the important information at the foot of the page.
Most renovation finance goes wrong at the start, when a structure is picked before the job has been sized. Fifteen minutes with the scope and a rough budget is enough for us to tell you which route fits and what it will cost you to run. Send us the scope.
The Honest Comparison
Equity Release or a Construction Facility?
This is the real decision on most renovations, and plenty of jobs do not need a construction facility at all. Here is where the line sits.
Release equity and pay as you go
- Far simpler. No stage inspections, no progress valuations, no builder verification
- You control the money and the timing, and can use several trades directly
- Right for cosmetic work: kitchens, bathrooms, flooring, paint, landscaping
- Limited by the equity you already hold, valued as the property stands today
- Interest usually starts on the whole amount from the day it is drawn, whether spent or not
A construction facility
- Funded against the on-completion value, so the project can exceed today’s equity
- Interest only on the balance drawn, which materially lowers the cost of a long build
- The lender verifies each stage before releasing funds, which protects you as well as them
- Usually required for structural work, a rebuild, or anything a lender treats as major
- More paperwork, a fixed price contract, a licensed builder, and less flexibility mid-build
If it is cosmetic, do not take a construction loan. A new kitchen and two bathrooms funded from released equity will cost you less in effort, less in valuation fees and less in delay than a facility with stage inspections attached, and no lender is going to insist otherwise. The construction facility earns its complexity when the work is structural, when the project costs more than the equity you currently hold, or when the build runs long enough that paying interest only on drawn funds is worth real money. The honest dividing line is roughly this: if a lender would need to see a licensed builder’s fixed price contract before it felt comfortable, you want a construction loan. If you could reasonably do the job with three trades and a spreadsheet, you want an equity release and a shorter conversation.
Find Out Which Side of the Line Your Job Sits On
Tell us the work and the budget. We will say whether it needs a construction facility or just an equity release, and what each would cost you to run. Fifteen minutes. No credit check.The Difference
Why People Use a Renovation Loan Broker Instead of Their Own Bank
Your bank can offer you its own top-up. It has no reason to tell you a personal loan would cost less on a small job, or that another lender would value the house higher.
We Price the Routes Against Each Other
A top-up with your lender, a refinance elsewhere, a staged facility and a personal loan, set side by side on what each costs you to run and what each will lend. You choose with the comparison in front of you rather than taking the first structure offered.
Legally On Your Side
A loan to renovate the home you will live in is regulated consumer credit, so Best Interests Duty applies. We must act in your best interests and give priority to your interests where they conflict with ours. Those obligations have applied to mortgage brokers since 1 January 2021.
No Fee. Not Even Clawback.
We do not charge you for the comparison, the structuring or the application, on any loan type. If you discharge the loan early we wear the clawback ourselves rather than invoicing you for it, which plenty of brokers do. Lenders pay a commission on settlement, disclosed to you in writing before any work begins.
100+ Lenders That Differ Sharply Here
What counts as structural, how much a top-up can release without a full reassessment, owner-builder appetite and heritage appetite all vary between lenders. The same job can be simple with one and a construction file with another, and the difference shows up in effort and delay.
The Process
How a Renovation Loan Comes Together
Four steps, and the first one should happen before you accept a quote rather than after.
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15 minutes
Before you accept a quote
The work, a rough budget, your income and what is owing on the property. No documents and no credit check. You finish the call knowing which structure the job needs, roughly how much you can release, and what each route would cost you to run.
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You gather
The documents
What is needed depends on the route. An equity release needs far less than a construction facility. We confirm exactly which parts your chosen lender wants before you chase any of them.
- Your income and identification documents
- A current statement for the existing home loan
- The builder’s quote, itemised where you can get it
- For structural work, a signed fixed price contract
- For structural work, council or certifier approval and plans
- Builder’s licence and insurance certificate for work over $20,000
- An owner-builder permit, where the work needs one
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We handle
Valuation then approval
On an equity route the valuer assesses the property as it stands. On a construction facility the valuer works from the plans and contract to establish the finished value. We choose the lender whose policy suits the job rather than the one with the sharpest headline, and we manage the conditions through to approval.
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Through the job
Release of the funds
An equity release or a personal loan pays out in one amount and you pay the trades. A construction facility pays the builder stage by stage after each stage is verified. Either way we stay on the file until the work is paid for, not just until settlement.
Track Record
Independent Since 2005
Joe Sukkar started in finance in 2000 and founded the practice five years later. Residential lending sits with Moufid, who has seen enough renovations funded through the wrong structure to spot one before it is lodged.
Related Options
Other Ways to Fund a Renovation
The pages behind each route, and the ones people land on next.
Cash-out refinance
Releasing equity through a new lender when your current one will not lend enough.
Construction loans
Knock down rebuilds and new builds, where the whole project is funded in stages.
Unsecured personal loans
Smaller jobs cleared over a few years without adding to the mortgage.
Investment loans
Renovating a rental, where how the work is itemised matters at tax time.
Refinance home loan
Moving the whole loan before the renovation, when your rate has drifted.
Every home loan we arrange
Back up to the full residential range if none of these is quite it.
Send Us the Quote Before You Accept It.
We will tell you which structure it needs and what that will cost you to run. It costs you nothing.Questions Answered
Renovation Loan FAQs
The questions people ask us most often before they accept a renovation quote.
What is a renovation loan?
A renovation loan is not a single product. It is one of four structures: releasing equity in your existing home loan, refinancing and taking cash out, a construction facility that releases funds in stages, or an unsecured personal loan. Which one suits depends on the size of the job and how much of it is structural.
Should I use a personal loan or home equity for a renovation?
For most renovations, releasing equity usually carries a lower interest rate than a personal loan, because the debt is secured against your home. The catch is that a small job then gets spread across the remaining term of your mortgage, which can cost more in total interest unless you pay it down faster. A personal loan suits a smaller job you want cleared in a few years, when you would rather not add to your mortgage, or when you do not hold enough equity yet.
Can I use a construction loan for a renovation?
Yes, for major or structural work such as a second storey, a large extension or a structural rework. A construction facility releases funds in stages as the builder completes the work, and it is valued on what the property will be worth when the work is finished, so the project can exceed the equity you hold today. For cosmetic work such as kitchens, bathrooms or flooring it is usually more effort than the job justifies. Our construction loans page covers how a staged facility works.
How much can I borrow for a renovation?
With an equity release it depends on how much equity you hold and whether you can service the larger loan. Lenders mortgage insurance is usually payable once you borrow more than 80 per cent of the property’s value, so it usually makes sense to size a release to stay under that line. On a home valued at $900,000 with $500,000 owing, that leaves roughly $220,000 of usable equity, subject to your income. A construction facility is sized against the on-completion value instead, which is why a structural project can be funded beyond your current equity.
Do I need a written contract for a renovation in New South Wales?
Yes, if the work is worth more than $5,000 including GST, and the maximum deposit a builder can ask for is 10 per cent. For work over $20,000 the contract must include a progress payment schedule, you have a cooling-off period of five clear business days, and the builder must take out Home Building Compensation cover before asking you for any payment. Lenders funding the work will usually check for that certificate.
Is renovation interest tax deductible?
On a rental property, generally yes. The ATO allows interest on money borrowed to finance renovations and extensions to a rental property, and what counts is how the borrowed money was used, not which property secures it. If one loan funds both private and rental spending the interest has to be apportioned, which is why a separate loan split for the renovation is worth setting up at the start. On your own home the interest is generally not deductible. This is general information, not tax advice, so confirm your position with your accountant.
Do I need an owner-builder permit to renovate my own home?
In New South Wales you need one when the work is worth more than $10,000, needs a development application or a complying development certificate, and you supervise or do it without a licensed builder. Home Building Compensation cover is not available for work you do yourself, and if you sell within seven years and six months of the permit being issued, the contract of sale must carry a warning that a permit was issued. Some lenders will not fund owner-builder work at all.
Does Best Interests Duty apply, and what does Intellect Finance charge?
Yes it applies. A loan to renovate a home you will live in is regulated consumer credit, so brokers must act in your best interests and give priority to your interests where they conflict with ours. We charge you nothing on any loan type, and no clawback fee if you discharge early. Lenders pay a commission on settlement.
Visit Us
Penrith Based.Clients Australia-Wide.
Penrith is our head office and the one you can walk into without an appointment. We also meet clients at Parramatta and in the Sydney CBD by arrangement. Most of the process runs by phone, email and video, so we arrange renovation finance in every state.
Parramatta
Suite 23, Level 1, 181 Church St, Parramatta NSW 2150
Mortgage broker Parramatta →Ready When You Are
Talk to Us Before You Accept the Quote.
Fifteen minutes with a residential specialist, ideally before you commit to a builder. We’ll tell you how much you can realistically release, which structure the job needs, and what each route would cost you to run. If a top-up on your existing loan is the simplest answer, we’ll tell you that too. No credit check, no paperwork, no obligation. Penrith based, clients Australia-wide. Intellect Finance Pty Ltd, ACL 390611.
A home loan for a property you will live in is regulated consumer credit, so Intellect Finance is legally required to act in your best interests under the Best Interests Duty in the National Consumer Credit Protection Act. Building contract and owner-builder requirements described on this page are New South Wales rules and differ in other states. Have your contract reviewed by your own solicitor. Nothing on this page is credit assistance, legal advice or an offer of credit, and no outcome is guaranteed.
Intellect Finance Pty Ltd | Australian Credit Licence 390611 | MFAA Member | AFCA Member
Important information General information only. Not credit assistance, legal advice or an offer of credit. We charge you no fee. Every caveat and source on this page is collected here. Tap to read.
General information only. The content on this page is general in nature and does not take into account your objectives, financial situation or needs. It is not credit assistance, financial advice, legal advice or tax advice, and it is not an offer of credit. You should consider whether it is appropriate for you and seek your own advice before acting on it.
Building contracts are a legal matter. The home building requirements described on this page apply in New South Wales and are published by the NSW Government. Every state and territory has its own home building legislation, thresholds and consumer protections. We are not solicitors, we do not provide legal advice, and we do not review building contracts for legal purposes. Have any building contract reviewed by your own solicitor before you sign it.
Renovation risk. Renovation costs and timeframes can move, particularly once structural work begins. Variations and cost increases beyond a quote or contract price are generally your responsibility unless a contingency has been arranged. A valuation is an opinion prepared by an independent valuer, and renovation work may add more or less to a property’s value than it costs.
Tax. References to the tax treatment of repairs, improvements and interest are general information drawn from the Australian Taxation Office and are not tax advice. Your position depends on your circumstances. Confirm it with a registered tax agent before the work begins.
Nothing here is a guarantee of approval. Loan approval, borrowing capacity, interest rates, loan to value ratios, valuations, stage definitions, drawdown processes, whether interest-only repayments are available during a staged facility, and eligibility are determined by individual lenders and by independent valuers, not by us. They differ between lenders and change over time. Timeframes vary with the lender, the valuer, the builder and the certifier, and are not guaranteed. Any figure or timeframe on this page is indicative and is not a quote, an offer, or a prediction of your outcome.
Best Interests Duty. A home loan for a property you will live in is regulated consumer credit under the National Consumer Credit Protection Act 2009. When providing credit assistance in relation to these products, Intellect Finance is required to act in your best interests and, where there is a conflict of interest, to give priority to your interests. These obligations have applied to mortgage brokers since 1 January 2021.
How we are paid. Intellect Finance does not charge borrowers a fee for arranging finance, and does not charge a clawback fee where a loan is discharged early. Lenders pay us a commission on settlement. The basis of that commission is disclosed to you in writing in our Credit Guide before any credit assistance is provided.
Third-party information. Where this page refers to regulatory settings, consumer guidance or lender policy, that information is sourced from the relevant authority and was correct to the best of our knowledge at the date shown on this page. Those rules change, sometimes without notice. Always confirm the current position with the issuing authority or with us before relying on it.
Found something wrong? If you believe anything on this page is inaccurate or out of date, tell us at joe@intellectfinance.com.au and we will review and correct it.
Intellect Finance Pty Ltd | Australian Credit Licence 390611 | MFAA Member | AFCA Member