Property renovations in Australia

This article offers a comprehensive guide to renovation options, including the legal obligations for property changes and maintenance, financing and loans. We’ll also touch on smart ways to pay for your renovation from overseas, with Wise.

How can you finance a home improvement project in Australia?

You may choose to finance your home renovation project in Australia through your own savings, or through taking out a local loan or mortgage. You could also choose to raise funds overseas if you’re an expat in Australia, and bring the money to Australia to pay for your home improvements.

The main financing options for home renovations in Australia include:

• Personal savings: Pay for your renovations with no outside financing if you have the savings already (eg. through other investments)
• Mortgage refinancing: If you already have a mortgage, you may increase or extend this to get more money for your project*
• Australian or overseas issued renovation loans: Local banks have specific home renovation loans, or you may take a loan in your home country if you’re an expat in Australia
• Australian or overseas personal loans: Australian banks may offer standard personal loans for home improvements – or you could also choose to get financing overseas and transfer to Australia instead

*Be aware that refinancing could lead to a new interest rate and extending your loan term may increase the total interest paid over time.

Let’s look through some of the more common options to finance a home improvement project in Australia.

Note: This guide provides general information and does not constitute financial advice. Consider speaking with a qualified adviser.

Financing through your personal savings

If you’re planning a more modest renovation – or if you have a large amount of money to hand – you may decide to fund your home project from your own savings. Self-funding isn’t feasible or the right choice for everyone. However, if you have the cash on hand it is a good way to avoid any excess costs involved in paying loan interest or fees.

Financing through an Australian bank personal loan

Some local banks have personal loans that can be used for a range of needs, including home renovations. Loans are offered based on individual circumstances, including income, credit history and other eligibility factors. Some options to consider include:

• NAB’s Personal loan
• Commbank’s Personal loan

Fees including annual fees, early redemption charges and late payment costs – as well as the agreed interest – may also apply.

Financing through an Australian bank renovation loan

Some Australian banks offer specific construction loans, which could be for general home improvements, or extending a property for example. Check out the CommBank Construction Loan to get a feel for the option – this type of loan releases funds gradually and in line with your project milestones, giving you money when you need it to pay contractors.

Terms, costs and interest do vary a lot on loans like these, so do compare your options before finalising the details of your renovation project.

Fund your Australian renovation from abroad with Wise

If you’re paying for your Australian home renovation from overseas – either by taking out a loan in your home country, or through bringing your savings from overseas to Australia – you’ll need a safe, cheap and reliable money transfer service. Check out Wise*, which offers low-cost international transfers which use the mid-market rate with transparent fees and often quick delivery times.

Wise also supports high value transfers and directly supports people moving larger amounts of money, usually over the equivalent of 20,000 GBP. You’ll qualify for automatic discounts on the variable fee when sending higher value payments and can get 24/7 support from Wise if you have questions or need help arranging the paperwork for your payment.

*For more information on how Wise works in your country, please visit the Wise website and select your country for full information about the products available

What can you use a construction or renovation loan for?

Construction loans are usually for building a property from scratch or making major structural changes to a property, while renovation loans can be more flexible. As an example, the NAB personal loan for renovation can be used for things like:

• Improvements to interiors of your kitchen and bathroom
• Paying builders and other professionals
• Furnishing and DIY projects on a smaller scale
• Adding energy efficient purchases to your property
• Building a pool

You can not use your personal loan from NAB for Lender’s Mortgage Insurance (LMI) or a home loan deposit. Banks offer helpful calculators to work out what you could borrow and what the repayments would be.

How much can you borrow?

Ultimately the amount you can borrow depends on many factors including the property value, the work you’re doing and your credit score. To give a feel, NAB’s personal renovation loans allow you to borrow up to 55,000 AUD and repay over a term that can be as long as 7 years. Construction loans can be higher value, but are decided based on the specific project and the individual situation of the applicant. Construction loans are often much longer term, paid back over up to 30 years.

The steps necessary to arrange a construction or renovation loan

Here are the steps usually necessary to arrange a home renovation loan in Australia:

Step 1: Speak to mortgage adviser or bank

You’ll be able to compare a few renovation loan options online using comparison websites – but individual banks also suggest you talk directly to their advisers to compare the interest rates and loan options offered.

Step 2: Specify renovation plans and costs

Once you’ve decided which bank or provider you’d like to take a loan from you may need to get a specific quote based on your renovation plans. For construction loans banks may offer different rates and loan amounts depending on the work type and whether or not you’re an existing customer. For personal loans the amount available may depend more on your own credit score.

Step 3: Activate your home renovation loan

Once you’re ready to start work you can receive your money from the bank either as a deposit to your bank account or in the form of payments which can be drawn down when you need to pay your contractors.

Step 4: Complete renovation work

Your team of designers and contractors can now complete the renovation and any required snagging, before you’re ready to sign off the project and move in.

Step 5: Submit bills and documentation

Check if your bank requires you to follow up on your loan by providing proof of the use of funds. If you’ve taken a construction loan as a deposit to your account you may be asked to provide the bank with documents to show you used the money in accordance with the terms of the loan.

The end to end process to secure financing for a renovation project can take some time. If you’re an expat buying property in Australia, think ahead about renovation financing and speak to mortgage advisers long before you’ll be hoping to start your renovation plan.

What government subsidies can I use for a renovation in Australia?

While there have been some recent high profile government backed initiatives for renovation and construction, like the 2020 Australian Home Builder grant, the focus is now more on energy efficient programs and state level support for people who want to build or update properties:

• Household Energy Upgrades Fund, unlocking funds for renovations, energy upgrades and energy-efficient appliances
• State level support – different states may also offer grants or funding for renovation under specific schemes

Renovations, decorations and common retailers

There are many different levels of renovation work from cosmetic changes to major renovations, and no matter what you’re planning you’ll need to make sure you’ve got all the proper planning permissions in place, with a fit-for-purpose budget to see your project through to completion.

Here are some projects you may think about, and some ideas to consider when planning:

Building materials, fixtures, fittings and DIY

Costs of materials, fixtures, fittings and DIY supplies vary enormously, largely dictated by the aesthetic and product quality choices you’ve made.

There are different suppliers depending on what you’re looking for, from construction specialists and trade sellers which may have multiple locations, such as Bunnings through to everyone’s favourite Ikea for your finishing touches and basic DIY materials. You can also buy lots of incidental supplies such as paint brushes, rollers, cloths and other essentials at neighbourhood DIY stores – check on Google maps for the best locations close to you.

Household goods

Part of many renovations will be replacing or upgrading household goods from your kitchen electrical appliances through to your living room cabinetry and furnishings.

Options here abound, from JB Hi Fi for electrical appliances, or a provider like Freedom for furniture. There are also department stores like Harvey Norman which can be good all round options for a broad range of goods, including delivery and insurance cover if you need them.

Kitchen

A kitchen upgrade can make a huge difference to your home, and while the costs can be fairly high, having a functional and enjoyable space for cooking matters a lot to many people. Kitchen upgrades can also add value to a home, making this a smart long term choice for many home owners.

For ideas check out Tradelink or stores like Ikea or Bunnings for cabinets and fittings.

Bathroom

Making changes to your bathroom is likely to be fairly budget friendly and can make a big difference to your home. The quality of the finish you choose will make a big difference too – but don’t skimp on the costs of a good plumber.

For design ideas and supplies, take a look at large companies like Reece which is a leader in this sector and covers pretty much everything you could need for most renovations.

Maintenance and safety

Once you own a property in Australia you will have certain obligations which include mandatory requirements. How this affects your home depends on the property type, age, location and other factors – but understanding your duties upfront is crucial.

We’ve covered a few common issues here, but do get professional advice if you’re at all unsure of the rules which may apply to your specific property in Australia.

Gas and electrical safety

You’re required to make sure all appliances and fittings are safe when renting out a property, and you may need certificates of compliance depending on your location and the types of fixtures in the home. Checks include Carbon Monoxide testing for gas appliances and inspections of power outlets and electrical appliances. You’ll have to hold on to your paperwork to show checks have taken place. Completing these checks is a smart idea for your own safety – even if it’s not mandatory for your specific property.

Structural checks and maintenance

If you’re letting a property you have a duty to make sure it is safe to live in which requires you to have regular inspections and ensure the fabric of the building is sound. Aside from this you will also usually have a duty to check for and remedy things like damp, mould, and pest infestations – make sure you’re clear on the regulations for your property type and location as these can vary by state.

Smoke alarms

Each state has its own requirements for installation and maintenance of smoke alarms, particularly if you intend to let out your Australian property.

Renovations advice in Australia

If you’ve decided to take the leap and buy a new place in Australia, the chances are that you’ll want to make a few changes once you take possession of your new home. Here are a few final words to make sure the renovations all go to plan and budget:

• Australian home renovations may cost anything from a few hundred dollars to many tens of thousands, depending on the scope of work
• Local banks offer dedicated property construction or renovation loans and can also offer personal loans to cover home improvement costs with fewer restrictions on usage
• Government support including loans and grants may be available for energy efficiency improvements on some properties
• If you need to fund your Australian home renovation from overseas, use a low-cost provider like Wise to send your money to dollars, to keep your renovation fees down overall

Useful resources (Checked 27th January 2026)

• Wise – multi-currency account with transparent, low-cost international transfers and the mid-market exchange rate for funding renovations from abroad
• Canstar – mortgage and loan comparison site
• NAB – how to finance a renovation of your Australian home
• Commbank – how to finance a renovation of your Australian home
• Household Energy Upgrades Fund – funds for renovations, energy upgrades and energy-efficient appliances
• Commbank construction loans – example of construction loan terms and availability
• NAB renovation loans – example renovation personal loan with more flexible usage options