Renovation Loans Perth

Updating your home but not sure how to fund it?

From kitchen upgrades in Subiaco to second-storey additions in Canning Vale, renovation costs in Perth have risen significantly – and most projects now require formal financing. Central Lending Solutions helps Perth homeowners identify the right loan structure for their project and access lenders suited to their situation, at no broker fee.

Speak with our team to explore your renovation finance options.

Renovation Finance Options in Perth

There is no single “renovation loan.” The right structure depends on your project size, your current equity position, and how funds need to be drawn down.

Common options include:

  • Cash-out refinance – Refinance your home loan to a higher amount and receive the difference as cash. Best suited to larger projects and borrowers with equity below 80% LVR, at home loan interest rates
  • Construction or progressive drawdown loan – Funds released in stages aligned with project milestones. Interest charged only on amounts drawn. Well suited to structural works, extensions, and second storeys
  • Home equity line of credit – A revolving facility secured against your property, drawn as needed. Works well for staged or uncertain-scope projects
  • Personal loan – Faster to access, unsecured, and better suited to cosmetic updates under $30,000–$50,000. Higher interest rate than a home loan but no valuation required
  • Redraw facility – If you’re ahead on repayments, you may already have accessible funds in your existing loan

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Typical Renovation Costs in Perth (2026)

Perth sits approximately 18% above the national average for home renovation pricing, driven by tight trade availability and freight premiums on materials. Waitlists of 10–16 weeks on key trades are common.

Project typeEstimated cost range
Bathroom renovation (basic)$10,500 – $21,000
Bathroom renovation (mid-range)$21,000 – $36,750
Kitchen renovation (standard)$25,000 – $30,000
Kitchen renovation (mid-range)~$40,000
Full internal renovation$80,000 – $300,000+
Ground floor extensionFrom $250,000
Second storey addition$350,000 – $600,000+

Mid-range kitchen and bathroom renovations in Perth typically return 60–80% of their cost in added property value, per HIA data. A 15–20% contingency allowance is broadly recommended given current trade and material conditions.

What Documents You May Need

For a cash-out refinance or equity-based renovation loan:

  • Recent payslips or tax returns (last 1–2 years)
  • Bank statements (typically 3–6 months)
  • Current loan statement and rates notice
  • Builder quotes or fixed-price contract

For a construction or major renovation loan, lenders will also require:

Benefits of Renovation Finance

  • Access funds at home loan rates, significantly cheaper than personal loan rates
  • Potential to increase property value and rental yield
  • Construction loan structures protect cash flow on large staged projects
  • Options for owner-occupiers and investment properties
  • Can be combined with a home loan refinance to improve your overall rate at the same time

Things to Consider Before Applying

Renovation finance is a flexible tool, but there are trade-offs to be aware of:

  • A cash-out refinance increases your loan balance and repayments
  • Construction loans involve more documentation than standard home loans
  • Perth’s trade shortage can extend project timelines – factor this into your drawdown schedule
  • Over-capitalising relative to comparable properties in your suburb can limit value recovery at sale

How We Help with Renovation Loans in Perth

Our role as your mortgage broker is to:

  • Assess your current loan structure, equity position, and project scope
  • Identify whether a refinance, construction loan, line of credit, or personal loan suits best
  • Compare lenders with appetite for renovation and construction finance in Perth
  • Manage the application process through to settlement or first drawdown

For projects growing into larger builds, we also assist with residential construction loans for Perth homeowners.

Speak With a Renovation Finance Specialist in Perth

If you’re planning a renovation and want to understand the most cost-effective way to fund it, our team can review your loan position and map out your options.Contact Central Lending Solutions today to discuss your project and get a clear picture of what you can borrow.

Frequently Asked Questions

Not always. Many lenders will assess an application before permits are in place, particularly for smaller projects. For construction loans on structural works, approved plans are generally required before funds are released.

Yes. Renovation finance is available for both owner-occupied and investment properties, though LVR limits and lender criteria can differ for investors.

A cash-out refinance gives you the full amount upfront from day one. A construction loan releases funds progressively as works reach agreed milestones, with interest charged only on what has been drawn down.

For an equity-based refinance, most lenders cap new lending at 80% of your property’s value. Personal loans typically range from $5,000 to $75,000 depending on the lender. Construction loan amounts are sized against the fixed-price contract and the completed property valuation.