Financing a renovation involves securing funds to update your property, often with the aim of increasing its market value before sale. As of December 2025, Melbourne homeowners considering renovations prior to selling typically explore several financing options.
Currently in Melbourne, the most common methods include utilising existing equity in your home through a line of credit or a renovation loan. These loans allow you to borrow against the existing value of your property. Alternatively, some homeowners redraw from their mortgage, though this can impact repayment schedules. It’s important to realise that lenders will assess the potential return on investment – meaning, will the renovation add enough value to justify the cost? In the Melbourne Eastern Suburbs, where buyers strongly favour well-presented homes, renovations focusing on kitchens, bathrooms, and creating light-filled spaces generally yield the best results. As of December 2025, typical renovation costs range from $20,000 for cosmetic updates to $50,000+ for more substantial works. A comprehensive property appraisal from Fletchers can help determine which renovations are likely to maximise your property’s appeal and potential sale price in 2026. The sales process in 2026 will continue to reward properties that present well, and a strategic renovation can be a key component of a successful campaign.
Understanding your financing options and aligning renovations with current buyer preferences is crucial for achieving a strong sale result.