What Is a Mortgage Refinance?
A renovation or home extension is a significant undertaking, not just physically changing your home, but also financially. Because of this, most homeowners need to refinance their existing mortgage to cover the costs.
Refinancing means drawing on the equity in your home (your current property value (if sold today) minus what you still owe on your mortgage) to release funds for your project. Banks typically require you to retain at least 20% equity in your home after refinancing. If you’d like to see how much you could access, this free online mortgage calculator is a useful starting point.
Where Can I Refinance?
You can refinance with your current mortgage broker or bank, but it’s also worth shopping around. This is a good time to check you’re getting the best rate available and compare what other banks or brokers are offering.
One option worth looking into is a green loan. Green loans have grown in popularity recently, typically offering low or 0% interest rates for improvements that make your home warmer, drier, and more energy efficient, such as heat pumps, solar installation, and rainwater tanks. Learn more on our website.
Comparing all your options can help you secure the best rate for you and your family as you work toward a space that truly feels like home.
Before meeting with a builder, it’s a good idea to have already met with your bank or broker and secured pre-approval. This gives you a clear picture of what you can afford to renovate, so you go into your builder’s meeting with a realistic budget in mind.
As a starting point, a standard bathroom or kitchen renovation (a full gut and redo of the space, not including plumbing or electrical relocation) is typically around $20,000. Other common costs (like flooring and painting) are estimated in the table below.
Cost Estimation Table
| Renovation item | Estimated cost | Notes |
|---|---|---|
| Bathroom or kitchen renovation | From $20,000 | Full gut and redo of the space; excludes plumbing or electrical relocation |
| Carpet flooring | $25–$100+ per m² | Excludes professional installation |
| Laminate flooring | $30–$100+ per m² | Excludes professional installation |
| Vinyl / hybrid plank flooring | $40–$90+ per m² | Excludes professional installation |
| Engineered timber or solid wood flooring | $120–$400+ per m² | Excludes professional installation |
| Interior painting | $35–$55 per m² | Labour and materials |
| Exterior painting | $40–$90 per m² | Labour and materials |
About these estimates
Flooring cost estimates sourced from Marchand Online, Floorex, and Forte. Prices are indicative and will vary by supplier, region, and project scope. We recommend getting a personalised quote before budgeting.
Where Should I Spend My Money and Where Shouldn’t I?
When renovating, the most important thing is to know your why. Are you renovating to better suit your family’s lifestyle? To refresh a tired home? Or to maximise resale value? Knowing your why shapes your renovation decisions and helps your builder understand exactly what you’re trying to achieve.
If your goal is to suit your family’s lifestyle, you might prioritise added storage, open-plan living areas, or improved energy efficiency. If your goal is resale value, you might instead focus on adding a bathroom or bedroom, opening the living area, or adding a garage. These changes can significantly lift your home’s value, but also its renovation cost. Your choice of low, mid, or high-end materials will also have a major impact on your overall renovation cost, and therefore how much you’ll need to refinance.
Conclusion
Renovating can feel daunting, but engaging a builder early (once you know your budget) makes the whole process far more seamless. Your builder will typically project-manage the job, coordinating subcontractors and keeping everything on track.
At Rise Residential, we pride ourselves on expert project management and clear communication, ensuring the process is stress-free for you as we walk alongside you every step of the way.