Home renovation loan for owners

Last updated: 14 June 2016

Home renovation loans help eligible people pay for work done to their home for health and safety reasons.

The loans can be used to top up savings or grants to pay for the work.

Am I eligible for a home renovation loan?

You may be eligible if you:

  • Are a home owner in Victoria
  • Have any of the following:
    • Current Commonwealth Health Care Card
    • Commonwealth Pensioner Concession Card, or
    • Department of Veteran Affairs Gold Card
  • Are any of the following:
    • Over 60 years old
    • Living with a disability and get a disability support payment
    • Permanently caring for someone with a disability.

To be eligible for a home renovation loan:

  • The home must be your main place of residence
  • A title search should show you own the home
  • You need to have at least 30 per cent equity in the home
  • You must have a satisfactory credit rating established through a credit check
  • Your total monthly commitments cannot exceed 25 per cent of your gross monthly income. This includes repayments for your Home Renovation Loan, credit cards, any personal loans and your rent.

What do you need as security for the loan?

As a home owner:

  • For loans up to $10,000: no security is needed
  • For loans over $10,000: you will need to provide a mortgage on your home to the Director of Housing.

Unless there are special circumstances, the maximum loan amount is $25,000. In special circumstances, a loan of up to $50,000 may be considered.

Costs and repaying the loan

You can negotiate minimum repayments.

The maximum loan term is 15 years. The annual percentage rate is usually two per cent below the Director of Housing's three year fixed interest rate.

Call Loan Assistance to find out current interest rates and if there will be any fees, charges and conditions on your home renovation loan.

How do I apply for a home renovation loan?

Call Loan Assistance on (03) 9096 9821 or free call 1800 134 872.

What if my application for a home renovation loan is declined?

Go to Loan application and current borrower appeals for more information about what you can appeal.

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