Renovation Loans

How To Renovate On A Budget

Renovating your home can become costly, especially when the bills start piling up. Many people start small and end up renovating their entire home. Problems arise, time flies and eventually, you’re too far in to stop the work. In this article, we give you an insight into how to renovate on a budget.

Trying to stay on a limited budget can, therefore, be challenging. It doesn’t have to be this way. With a few tips and tricks, you can renovate your home on a small budget. To do this, you will need to put a few considerations in place, especially if you’re going to stay on budget.

Here are a few tips to help you renovate on a small budget

Proper budgeting

One of the vital things you’ll need to consider when renovating your home is your budget.  A lack of budgeting can lead to overspending.

You will need to find how much money you will need for all the materials as well as the labour cost. To do this, you must prepare! Prior to starting any renovations, grab a paper and pen or for those who prefer the digital technique, download a renovation app. Ask yourself the following questions and note down your response.

  • What changes need to be made?
  • What are my skills? Do I need outside help? If so how much will this cost?
  • What materials do I need?
  • How long is this going to take?
  • Do I need a loan to help renovate? If so have I done my research?

You should also put aside some cash for any additional costs that may arise when renovating the home. A contingency fund is important when renovating. If any surprises come about, you need to be able to cover them without leaving a dent in your savings.

Don’t think you know too much

Assuming that you know too much can be detrimental to your renovations. Reaching out and asking for help is important. Learning the process of your home renovation should be something you’ll need to consider doing over time. You will get even to learn ways you can quickly reduce your budget.

You might also find what you thought is so necessary for the renovation isn’t needed. Getting information from home renovations experts will be a better way to do it, but this can be costly. As such, consider reaching out to family or friends that have had similar experiences renovating on a small budget. Additionally, you can also try getting information from online sources.

Choose the right contractor

When renovating your home on a small budget, it is more than likely that you will have to hire a contractor. Finding the right contractor is really important to make sure that the job gets done smoothly. There have been many cases where people hire a contractor that does not deliver on the task. This leaves them out of pocket and dissatisfied with the quality of the work.

When work is done poorly, you may also find yourself hiring another contractor to redo the renovation work.  This is the last thing that you want to do. Once again, we recommend speaking to any family or friends. Word of mouth is the best form of review in the trade industry. If looking online, see if there are any reviews. Speak to the contractors and make sure that all agreements and quotations are documented.

Rent and don’t buy

Some tools you will need during the renovation might be useful only for a short period. In these cases, it may be more cost-effective to rent them. For example instead of hiring a commercial carpet cleaner to clean your carpets, consider renting one from Bunnings and cleaning them yourself. Reach out to friends, they may have the same tools that they can happily lend you.

Find the best price

Always try shopping for quality items, but remember to go for the best prices.  Shop around different stores knowing the amounts of each time from the various stores and get to compare them. Additionally, try and check with companies that offer even after-sale services as this will save for you too much cost.

You don’t have to buy everything new

You want to upgrade your home to have a better look, not to build a new home. Assess what you already have and the condition it is in. At the same time, there are many second-hand stores that sell anything from white goods, furniture, and electronics. Check out Gumtree, Facebook marketplace and eBay for some cheap second-hand bargains.

Sell your old stuff

Don’t just buy but sell. If there is something you won’t utilise anymore, sell it online. Gumtree or Facebook marketplace allows you to do this. In a matter of minutes, you sell practically anything. The money you will get from selling unused items can be used to purchase other stuff for your home renovation.


The key to renovating on a small budget is minimising the external costs. Rather than paying some to do something simple, try doing it yourself. Some of the demolition tasks you can do them by yourself like removing the tiles and even cleaning. With YouTube, you can learn anything. Spend some time watching YouTube tutorials. Now, we’re not recommending you learn how to become an electrician online. Leave that to the experts. Learn more simple tasks such as crafting and how to paint. Make sure you’re cautious about whatever task you choose.

Bottom line

Renovating your home can be quite exciting. It is very much possible to renovate on a small budget. If you find that you need the necessary funding to help you get started or finish your renovation; there are options out there. Consider taking out a renovation loan.

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How to Get an Affordable Second Mortgage

By getting an affordable second mortgage on your property, you are not only increasing your borrowing power — but you can use the extra money for your other needs. If you planning to increase your overall borrowings, but you have an existing mortgage, the easiest approach is to refinance it for a higher amount. One of the most important considerations in getting a second mortgage is reducing your balances by up to 50 per cent! You may ask, “How is it even possible?”

The truth is that a lot of people incur interests due to unpaid mortgages which build up over the years. In doing so, they are not only reducing their home equity, but they are also putting their homes at risk of foreclosure. So, if you can successfully negotiate your balance reductions and avoid foreclosure of your property at the same time, grab that chance. It does not only help you save money and at the same time avoid legal actions that may damage your credit status.

Here are tips to help you get the most practical and most affordable second mortgage possible:

Research is key to an affordable second mortgage

You can search for public forums and blogs that talk about the best second mortgage options available for someone with the same situation as yours. It will help you filter debt settlement companies that are willing to work on your case for a fee. By doing your research, you will understand the importance of negotiating for balance reduction, the expenses you have to pay in the process and the available options for you in your area. Just make sure that you know how to filter objective from subjective advice. Otherwise, you may immediately take up an expensive service when there are less expensive ways of solving your mortgage problems.

Weigh the Pros and Cons of Second Mortgages

In reality, it only makes sense to get a second mortgage when you don’t have ready access to funds but want to pay for your mortgages and other high-interest debts. It is also a practical and low-cost alternative for those who want to start a business. Some people who are in serious debt also use second mortgages to consolidate debts. Before applying for an additional mortgage, ask yourself if it is possible to meet your financial need without getting another debt. Or, if the proceeds of the extra money you will get are worth the interests you have to pay for a long period of time.

Choose the right lender

Some mortgage applications take a lot of time. If you don’t want a very time-consuming process, like those in banks which discourage low-income applicants with low credit scores to apply by implementing very difficult qualifying criteria, go for alternative lenders like Australian Lending Centre. The company implements fast approval process because it often handles second mortgage applications and there are no errors and delays involved because the staffs are skilled and experienced in this type of loan. The fees are affordable and manageable as well.

After that, use the proceeds of your second mortgage top pay for your urgent needs. That means you need to learn to prioritise your needs-and spend only on those that would improve your financial situation. For example, if you still have a car which is up and running and you have a huge debt to pay, perhaps it would be wiser to pay off those debts before you buy your dream car.

Thoughts for Consideration on an affordable second mortgage

It is not easy to bring yourself to do all those things mentioned above. Almost everyone knows how difficult it is to get an affordable second mortgage especially if you have a poor credit rating. On top of it all, you may have developed financial habits that diminish your income and your financial strength. But, over time, with practice, you can break habits that you may have been practising for many years.

The pull to take advantage of a second mortgage that offers ‘high equity’ at the expense of high interest may lurk everywhere you turn. There are many loan sharks offering ‘quick approval’ second mortgage online. The ads may show people enjoying a dream vacation, staying in a lavish home or probably spending for a grand wedding despite their bad credit. But the truth is that, when you have a bad credit—you should be careful with whatever money that comes your way.

Remember that getting into debt is a financial decision with a huge emotional impact. There could be many personal and emotional hurdles that can get in the way of making the best financial decision. That’s why it is important to educate yourself about mortgages and how you can use them wisely to avoid self-blame and guilt when things don’t go as planned.