Australians Are Investing Big in Home Renovations – Here’s How to Fund Yours
Australians are embracing home renovations like never before, spending over $1 billion per month on upgrades and improvements. Whether inspired by binge-worthy home makeover shows or the desire to avoid skyrocketing property prices, many homeowners are choosing to renovate rather than relocate.
If you’re considering a renovation, here’s a breakdown of the costs and smart ways to finance your project.
Home Improvement Trends: What Are Australians Renovating?
According to the 2022 Houzz & Home Report, the kitchen remains the top renovation priority, with 23% of homeowners investing in upgrades. Other popular renovation areas include:
- Living rooms, bathrooms, and bedrooms (each accounting for 20% of renovations)
- Outdoor spaces, home offices, and structural extensions
Regardless of the type of renovation, planning ahead is essential to ensure a smooth project.
How Much Do Home Renovations Cost?
Before diving into colour palettes and flooring options, it’s crucial to crunch the numbers. The latest Archicentre Cost Guide provides insights into average renovation costs:
- $75-$120 per square metre for timber floorboard polishing
- Up to $35 per square metre for interior painting
- Up to $4,600 for an extension
- Up to $48,000 for a full kitchen renovation (excluding appliances)
While the cost varies based on project scope and materials, well-planned renovations can boost both your lifestyle and home value.
Smart Ways to Finance Your Home Renovation
1. Cash Savings or Personal Loans
For smaller renovations, using cash savings or a personal loan can be a convenient option. Personal loans typically have shorter repayment periods (under five years), helping manage interest costs.
2. Home Loan Top-Up
A home loan top-up is a simple way to access extra funds for renovations. This method requires sufficient home equity and may offer lower interest rates compared to personal loans.
3. Construction or Renovation Loans
For larger projects, a renovation or construction loan could be the ideal solution. These loans release funds gradually as different project stages are completed, ensuring better cash flow management.
Kickstart Your Renovation with CBM Mortgages
If you’re ready to transform your home, CBM Mortgages is here to help. We offer expert guidance on home loan top-ups and renovation loans, ensuring you find the best financing solution.
🔹 Explore your loan options today – Visit CBM Mortgages and take the first step toward your dream renovation! and look at our dedicated construction finance page here.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Written by Craig McDonald 08/06/2025
