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A couple standing in their part-renovated villa kitchen, one holding a paint colour fan and the other a tape measure

Renovation and home improvement loans

A personal loan for the kitchen, the bathroom, the heat pump or the deck, applied for online and kept separate from your mortgage.

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The short answer

Is a personal loan or a mortgage top-up better for a renovation?

It depends on the project. A renovation loan in New Zealand is often a personal loan: a separate loan over a set term, arranged quickly, that leaves your mortgage untouched. A mortgage top-up adds the cost to your home loan and repays it over that longer term, which can mean more interest in total. We arrange personal loans, not mortgages.

Last updated

Why a personal loan

A renovation loan that sits apart from your mortgage.

A home improvement loan in New Zealand is usually a personal loan used for work on your home.

Your mortgage stays as it is

The loan is separate from your home loan, so your mortgage does not change.

Quick to arrange

Apply online and we aim to give you an initial decision quickly, often within an hour during business hours, then funding usually within 24 to 48 hours once approved.

A clear end date

You repay over a term agreed with the lender, so you know when the renovation is paid off.

What it covers

What can a renovation loan pay for?

A father and teenage daughter fitting new timber boards to the back deck of their weatherboard home, a lemon tree behind

A renovation loan pays for improvements to your home, from a single room to work across the whole house, subject to lender criteria.

People commonly borrow for projects like these. If yours is not on the list, tell us about it and we will confirm whether it is something we can help arrange.

  • A kitchen or bathroom refresh
  • Heating, such as a heat pump or a wood burner
  • Insulation, double glazing or ventilation
  • A deck, fencing or landscaping
  • Painting, flooring and new appliances

Your options

What is the best way to borrow money for house renovations?

There is no single best way: it depends on the size of the project, how soon you want to start and whether you own enough of your home to borrow against it.

Savings cost nothing in interest but take time to build. A personal loan suits a defined project with a known price, repaid over a set term. A mortgage top-up or a bank building loan is more often used for large or structural work, and is arranged with your mortgage lender or a mortgage adviser. Finance Made Easy arranges personal loans only.

Credit cards and store finance are revolving credit, with no fixed end date.

Loan amount

How much can I borrow for a renovation loan?

How much you can borrow depends on the lender, your income, your existing commitments and the project, so there is no set figure.

Lenders in New Zealand assess affordability under responsible lending rules: what you earn, what you already owe and your regular living costs.

Written quotes from your builder or tradespeople, with room for the unexpected, tell you the amount the job actually needs. Our renovation loan calculator then gives an estimate of the repayments.

Before you borrow

Is a home improvement loan worth it?

A home improvement loan can be worth it when the work matters to you now and the repayments fit comfortably in your budget. That is a personal decision, and these questions help frame it:

  • Does the work need doing soon, such as a leaking roof, cold rooms or a failing hot water cylinder?
  • Is the total cost of borrowing, including interest and fees, worth having the work done now rather than later?
  • Is the price firm, with written quotes, or could the scope grow once the work starts?

How it works

How to apply for a renovation loan

Ready to apply for a renovation loan? Start online, or call 0800 995 014 if you would rather talk.

  1. 01

    Price the job

    Get written quotes, so you know the amount you need.

  2. 02

    Estimate your repayments

    The repayment calculator gives a rough weekly, fortnightly or monthly figure. Results are estimates only.

  3. 03

    Apply online

    Fill in the online application, or call us if you prefer. You need to be working: we cannot help when your main income is a benefit or you are not currently working.

  4. 04

    Decision and funding

    We aim to give you an initial decision quickly, often within an hour during business hours. Once the lender approves the loan and checks your details, funding usually follows within 24 to 48 hours.

Side by side

Personal loan, mortgage top-up or saving up?

Three common ways to fund a renovation, compared on how they work rather than on price.

Personal loanMortgage top-upSaving up
How it worksA separate loan for the project.Extra borrowing added to your home loan.You pay from money put aside.
SpeedAn online application, a quick initial decision (often within an hour during business hours), funding usually within 24 to 48 hours once approved.Depends on your mortgage lender; may need a valuation.As long as it takes to save the amount.
SecurityDepends on the lender and the loan. Your mortgage is not changed.Secured against your home as part of your mortgage.None needed.
Repayment termA set term agreed with the lender, with a clear end date.Often repaid over the remaining mortgage term, unless you arrange otherwise.No repayments.
InterestAt the rate the lender offers, over the loan term.At your home loan rate, over a longer term, which can add up to more in total.None to pay.
Arranged byFinance Made Easy, online or by phone.Your bank or a mortgage adviser.You.

General information only, not financial advice. Costs, terms and security depend on the lender and your circumstances. Finance Made Easy does not arrange mortgages or mortgage top-ups.

Related

More on personal loans

Also paying off credit cards or store cards? Our guide to debt consolidation explains how combining debts into one loan works.

Questions

Renovation loans, answered.

Quick answers. Longer chats are welcome on the phone.

No one loan suits every renovation. It depends on the size of the project, the equity in your home and your budget. This is general information, not financial advice, and Finance Made Easy arranges personal loans only, not mortgage top-ups or building loans.

In New Zealand they are usually the same thing. A home improvement loan is a personal loan used for work on your home. Some banks also offer renovation or building loans linked to a mortgage, which are a different product arranged with your mortgage lender.

No. We are not able to help when your main income is a benefit or you are not currently working, and we will tell you so at the start rather than take an application that cannot go ahead.

No. Applications are not an offer of finance. Every loan is subject to lender criteria, affordability and responsible lending checks, and the lender confirms the amount, term and repayments in your loan documents. Figures from our repayment calculator are estimates only.

Applications are not an offer of finance. All lending is subject to lender criteria, affordability, verification and responsible lending checks. Calculator results are estimates only. This page is general information, not financial advice.

Finance Made Easy is a trading name of TrueNorth Financial Services Limited, FSP1011270, and a member of Financial Services Complaints Ltd (FSCL), membership 9517.

Request a call back

Rather we call you?

Answer a few quick questions and we aim to call you within 15 minutes during business hours. It is an enquiry with no obligation, and it is not an offer of finance. Ready to go? Apply online now.

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  • Plain English, no jargon
  • We aim to call you within 15 minutes during business hours
Prefer to talk? 0800 995 014 info@fmefinance.co.nz

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