Renovation loans made simple

A low rate renovation loan that won’t put a hole in your wallet.

  • Enter between $2,001 to $45,000
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Getting a renovation loan is as easy as 1, 2, 3.

Get your personalised rate

Get your rate

Discover your personalised interest rate in 1 minute (without impacting your credit score) with our quick and easy online RateEstimate.

Apply for a personal loan

Apply in minutes

Finalise your application in 5 minutes, then complete our simple online identity verification and bank statement upload process.

Get your personal loan funds

Enjoy your funds

After your loan has been approved and funded, you will receive your funds on the next business day. It really is as simple as that.

You’ve got questions we’ve got answers.

What is a renovation loan?

Want to renovate your house? Build an extension? Repaint the walls? A home improvement loan is a form of unsecured personal loan that provides you with the cash you need to turn your dreams into a reality.

Home improvement activities can be complex and costly. Depending on the project, you could find yourself needing to pay for materials, designs, and the services of various tradespeople, such as electricians, plumbers, or cabinetmakers. However, this doesn’t mean you have to postpone your plans indefinitely: with a home improvement loan, you can access the cash you need to give your house some TLC, and then pay back the debt in a sensible and manageable way.

A home improvement loan works just like a personal loan. That is, you borrow a specific amount of money and then pay it back with interest over an agreed term. To qualify for a personal loan, you must submit an application and provide us with information to verify your identity and financial circumstances (such as a bank statement) that takes into account your borrowing history, employment status, credit score, and other factors.

Personal loans, including home improvement loans, can allow you to enjoy a lower interest rate than a credit card and also offer a consistent repayment schedule. RateSetter personal loans also give you the flexibility to make early repayments, allowing you to reduce the length of your loan and helping minimise the amount you pay in interest.

What can I use a renovation loan for?

You can use a renovation loan for a number of different purposes, including:

  • Kitchen – if you’re wanting to replace everything, including the kitchen sink
  • Bathroom – whether it be a fresh coat of paint or a full makeover
  • Bedroom – to support a growing family
  • Living area – if you want to remove a wall or freshen up the living space
  • Backyard – whether putting in a new garden, a pool or a new retaining wall

If you are approved for a loan and you accept your loan contract, we’ll pay funds into your nominated bank account on the next business day. This gives you the flexibility to manage and pay for your renovation costs any way you like.

How much does a renovation loan cost?

If you’re considering a home renovation loan, you may be unsure of how much it will cost. Most renovation loans have three components that affect the total cost over the life of the loan:

  • the interest rate (this may be fixed or variable)
  • a one-time establishment fee
  • ongoing fees (such as account maintenance fees, late payment fees, and other charges)

These costs may be displayed to you as a comparison rate that represents the total effective price of a loan. This allows you to compare different renovation loans to find the one that best suits your needs.

For an overview of fees and charges (including interest rates) associated with RateSetter’s renovation loans, see the table below:

Term 1 yr2 yr3 yr4 yr5 yr
Loan typeVariableVariableFixedFixedFixed
Interest rate
5.92% p.a.
5.92% p.a.
7.70% p.a.
10.23% p.a.
10.29% p.a.
Comparison rate*from
7.53% p.a.
7.90% p.a.
9.75% p.a.
11.11% p.a.
11.11% p.a.
Credit Assistance Feefrom
Monthly fees$0 $0
Early Repayment Fees$0$0$0$0$0

Comparison rates for 1, 2 and 3 year loans are based on an unsecured personal loan of $10,000 over a 36 month term. Comparison rates for 4 and 5 year loans are based on an unsecured personal loan of $30,000 over a 60 month term. Comparison rates shown assume a customer with an excellent credit history. Rates current as at 4am, 25 June 2019. Warning: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

Am I eligible for a renovation loan?

RateSetter provides secured and unsecured home renovation loans to Australian-residents. Save time before applying by making sure:

  • You are aged 21 or over
  • You are an Australian citizen or permanent resident
  • You have a regular source of income that you can demonstrate
  • You have a good credit history

To see if you could qualify for a RateSetter renovation loan, you can get a RateEstimate, it only takes 1 minute and won’t affect your credit score. If you request a RateEstimate, we will ask you a few questions so we can calculate an initial estimate of your borrowing potential, and the rates, fees and charges that may apply to your loan.

In processing your application, we consider a number of factors, including your credit file as provided to us by Equifax or Illion, our credit bureau partners. If you would like more information regarding your credit file, you should contact Equifax and Illion directly.

What do I need to apply?

To apply for a RateSetter renovation loan, you will need to complete our identity verification process successfully, as well as considering how suitable a loan is to your current circumstances. To complete identity verification you will need to provide one or more of the following documents:

  • Australian State or Territory-issued drivers licence
  • Australian or foreign passport
  • Address verification document such as a utility bill or tenancy agreement

These details can either be entered on our website during the application process and automatically verified online or you can uploaded as part of the application process.

When assessing your application, we are looking for evidence of how suitable a renovation loan is to your current circumstances. Among other things, we’ll assess your:

  • Employment stability;
  • Income;
  • Expenses;
  • Repayment history;
  • Credit bureau information; and
  • Other details you communicate to us.

You will also be asked to verify your income and expenses, and may be asked to provide supporting documentation such as bank statement information or payslips. The documents you will need to provide will be displayed to you during the application process.

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Representative example: Based on $10,000 loan with a 36 month term for a borrower with a excellent credit history at a comparison rate of 7.70% p.a. the estimated total amount payable including all applicable fees is $11,567. RateSetter loan repayment terms range from a minimum of 6 months to a maximum of 5 years. Interest rates range from 5.92% p.a. (comparison rate 7.53% p.a.) to 19.46% p.a. (comparison rate 20.38% p.a.). Rates are subject to change depending on the rates offered by lenders in our Lending Markets. Rates stated as at 4am, 25 June 2019 and are subject to change. RateSetter credit criteria and terms and conditions apply.