Our experienced mortgage brokers can help you find the right home improvement loan for your needs.
Transform your house into the home of your dreams with an approved home improvement loan. Whether you’re planning to renovate, extend, or redecorate, we help you find the right home improvement loan, to make your home truly yours.
Home improvements can help you make the most of your property. Whether you want to extend your lounge, renovate your kitchen, convert your attic, or add a new garden area or in-ground pool, all these can add value for your family or attract potential buyers.
We Kiwis have a knack for DIY and a passion for home improvements. But why wait? A home renovation loan allows you to tackle those grand plans or make much needed renovations to your home, without the wait. Spread the cost over time, making it manageable and smart.
Here at OneStop Financial Solutions, we’re committed to finding you the best home improvement loan in NZ. Our application process is straightforward – because we believe in making your home renovation journey as seamless as your new living space.
Investing in your home is investing in your future – and with flexible home improvement loan options, you’re a step away from turning your property dreams into a reality.
A home improvement loan is available in two options: an unsecured loan or a secured loan – which is traditionally a Mortgage top-up, or a Construction loan for significant projects. Both options allow you to use the loan to fund home renovations or home extensions. The term ‘home improvement’ covers a range of changes you might want to make for your property from small to medium jobs like redecorating or reconstructing the garden, through to big and expensive jobs such as installing a new kitchen or adding a conservatory or lounge extension.
An unsecured loan, also known as a personal loan, is one that isn’t secured against your property. Every lender provider will have a different limit on the maximum amount you can borrow with a personal loan. Most personal loans have a fixed rate of interest, which means you’ll pay the same amount each month throughout the term of the loan. The longer the loan term is, the cheaper the monthly repayments will be and the usual term is around three to five years, with a maximum of up to 7 years.
This type of loan uses your property as a form of security. If you fail any repayments, the lender can take the property and sell it to cover any outstanding balance. ‘1st Mortgage’ is simply a regular home loan, via a top-up to your existing loan or with a new bank (refinancing).
Homeloans being secured are of course over a longer term (e.g 25-30 Years) and typically allow you to borrow larger amounts than personal loans, depending on your property value. They also offer longer periods for repayment compared to unsecured loans from as low as five years up to a maximum of 30 years. Paying back over a longer period means monthly payments can be much lower but that also means you’ll pay more in interest overall.
Getting a home renovation loan helps you spread out the cost of a project with monthly payments over a set period of time. An unsecured personal loan is typically a common option that comes with fixed repayment terms and fixed interest rates. This means you may be able to carry out a whole list of home improvements with just one loan you know you can afford. The total amount you pay back will depend on the rate of interest you’re charged as well as the length of the loan.
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Once you have a home improvement plan and its cost in place, you can then work out what you’re able to afford. Take time to review your income, spending, and any financial commitments you have currently as well as in the near future. Calculate how much you can afford to repay each month and for how many years.
Based on the information provided, we take a look at our extensive network of lenders to bring you a range of loans for renovation that offer the best mix of rates, flexibility and fees. We can then sit down and compare loans from a variety of providers and carefully consider the terms and conditions to make sure you can meet them.
With so many options to choose from, finding the right home loan can seem overwhelming. Our home loan specialists will work with you to understand your requirements and take a closer look at your current mortgage situation and financial situation. One Stop Financial Solutions will handle your home loan for you from start to finish, giving you the reassurance of expert home loan advice and ongoing support. With access to hundreds of lenders and different home loans we want to meet your goals and needs and are here to make sure we’re offering you the best home renovation loan that’s right for you.
A home improvement loan in New Zealand is a loan used to finance renovations or repairs on a property. These can be unsecured personal loans or secured against the equity in your home, depending on the amount borrowed and the terms offered by the lender.
To qualify, you generally need a good credit history, a stable income, and in some cases, sufficient home equity. Lenders will also consider your debt-to-income ratio to ensure you can comfortably manage loan repayments alongside your other financial obligations.
These loans can increase the value of your property by improving its condition, functionality, or aesthetic appeal. They also allow you to spread the cost of renovations over time, rather than needing to pay all costs upfront.
Yes, you can choose between secured and unsecured loans. Secured loans typically have lower interest rates and longer repayment terms because they are backed by your home’s equity. Unsecured loans, while faster to obtain and requiring no collateral, usually come with higher interest rates and shorter repayment terms.
Assess the total cost of your renovation project to ensure you borrow the right amount. Compare different loan offers to find the best interest rates and terms. Also, consider how the loan repayment will fit into your budget and financial plans.
The amount you can borrow depends on several factors, including your creditworthiness, income, existing debts, and the equity in your home. Loan amounts can vary from a few thousand to several hundred thousand New Zealand dollars.
A top-up on your mortgage is essentially increasing your existing mortgage to cover the renovation costs, which usually offers a lower interest rate compared to a separate home improvement loan. However, it typically extends the term of your mortgage and may result in more interest paid over time.
KiwiSaver funds are generally not accessible for home improvements; they are intended for first-time home purchases or in situations of significant financial hardship. However, if you are buying a home that requires immediate renovations, you might be able to use your KiwiSaver funds under the first-home buyer provisions.
The time frame can vary by lender. Unsecured loans may be processed quickly, sometimes within a few days, while secured loans may take longer due to the need for property valuations and additional documentation.
If your loan is secured against your home, the outstanding balance will typically need to be repaid from the proceeds of the sale. If it’s an unsecured loan, you will continue to repay it according to the original terms, regardless of the property sale.
