There are a few different ways you could pay for your renovation.
You may be able to apply to increase your mortgage to pay for the renovations. It’s a very similar process to applying for a home loan, so talking to a Home Loan Specialist could be a good place to start. Your lender will look at your income and expenditure and they’ll revalue the property based on the current market.
If your renovation involves structural changes, you might consider applying for a construction loan. A construction loan means that your property can be valued to include your planned improvements, potentially giving you access to more borrowings. If you’re making non-structural changes, you have the option of either applying for a construction loan or using existing equity.
If you’ve made extra repayments to your home loan over time, you will have built up a surplus balance. Well done! If your loan type allows, you could redraw the surplus funds to help pay for the renovations. Keep in mind that for structural renovations, you need to let your lender know what you’re planning to do no matter how you plan to pay for it.