Have you been eager to start your homeowner journey? Once you discover the options available, you will likely feel spoiled for choice … that is, until you realise that there might be some interior renovations or exterior renovations needed for your prospective Auckland home.
If you are still in the negotiations phase of finding a mortgage to suit your budget, you might be wondering: can renovations be included in my mortgage? The good news is, you have options to do this!
So, how does a renovations mortgage loan work?
In today’s blog, we will be looking at if home renovations in Auckland can be included in mortgages, and what the key points are that you need to consider.
First, let’s take a look at what exactly a mortgage renovation loan is.
Understanding the commitment you are making
A renovation mortgage loan covers two important avenues for potential homeowners: on the one hand, there is the loan component for the home’s mortgage itself, and on the other, there is the cost for renovations that the loan amount will assist in covering.
Therefore, whether you have bathroom renovations in your Auckland home in mind, or any other renovations, your loan could help you get the results you need!
What to consider when it comes to your mortgage renovation loan
The important thing to remember when applying for a mortgage renovation home loan, is that although you will receive the funds that need to make adjustments, you are under obligation to have these renovations done 6 months up to a year of closing.
Also, you cannot under any circumstance use your renovation portion of your mortgage for other expenses.
Understanding the difference between a renovation mortgage loan and a home renovation loan
With your renovation mortgage loan, both your reno costs and home loan are put under one umbrella. On the other hand, a simple home renovation loan is a second loan that you can use separately for renovations or any other expenses.
Should you consider getting an all in one mortgage?
If you know that you will need to do renovations at your new home, having a renovation mortgage loan will allow you to borrow more money above your home’s cost and even help you secure lower rates than those that you would have needed to pay with a traditional loan.
Do bear in mind that the approval process for this type of loan might take longer than others, so plan in advance to ensure you can reap all the benefits of getting the funds that you need to renovate your future home!
