Equity Release for Renovation Home Loan Australia

Q: How much equity can I release?

Up to 80% LVR. $1M home with $400K loan = up to $400K cash-out.

Q: Cash-out refinance vs construction loan — what's the difference?

Cash-out: lump sum for smaller reno. Construction: progressive draws for major work.

Q: Will the renovation increase my property value?

Kitchen/bathroom add 70-80% of cost. Extensions vary. Cosmetic vs structural matters.

Q: Do lenders require licensed builder?

Construction loans yes; smaller cash-out often no. Owner-builder harder.

Q: Tax deductibility of renovation loan?

Investment property: deductible. Owner-occupied: not. Confirm with accountant.

Who this guide is for

Australian homeowners with equity in their property wanting to fund renovation — kitchen, bathroom, extension, full overhaul.

Owners with $100K+ equity wanting to fund renovation
Buyers planning major renovation post-purchase
Landlords renovating investment property to add value
Multi-generational families adding granny flat or extension

The local picture

Equity release for renovation has multiple pathways: refinance with cash-out, line of credit, dedicated construction loan. Each has different terms and tax treatment. Most general brokers don't explain the tradeoffs clearly.

How Mortgagefy helps locally

Mortgagefy explains your equity release options based on your renovation type and budget. We identify the best lender and structure for your specific scenario.

Free advice.

How it works — 4 simple steps

Free renovation chat

20-minute call about your renovation plans and current loan.

Map equity options

We outline cash-out refinance, line of credit, construction loan.

Application support

We compile valuation, renovation plans, contractor quotes.

Settle and renovate

Funds released, you start renovating.

Frequently asked questions

How much equity can I release?

Typically up to 80% LVR (loan + cash-out). For $1M home with $400K loan, you have $400K usable equity (up to $800K total loan).

Cash-out refinance vs construction loan — what's the difference?

Cash-out refinance: lump sum for smaller reno. Construction loan: progressive draws as work happens, for major build. Different lender requirements.

Will the renovation increase my property value?

Depends on renovation. Kitchen/bathroom typically add 70-80% of cost in value. Extensions can add more or less. Cosmetic vs structural matters.

Do lenders require licensed builder?

For construction loans yes — typically. For smaller cash-out refinances often no. Owner-builder construction loans possible but harder.

Tax deductibility of renovation loan?

For investment property: equity released for income-producing renovation is tax-deductible. For owner-occupied: not deductible. Confirm with accountant.

Talk to us about renovation equity release

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Equity Release for Renovation Home Loan in Australia