How to Get Financing For a Bathroom Remodel

April 20, 2018

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By AAS Renovations Perth

In Blog

If you are planning on remodelling your bathroom, you might soon realise that it can be very expensive. Typically, even a small bathroom remodel will cost thousands of dollars, when you factor in just the labour, materials, tools, and equipment required. That is before you consider whether or not you need help from a professional. Depending on your financial resources you may need financing to complete a bathroom remodel. This article can help you obtain this finance.

Calculate the Remodelling Costs

Before you start looking into financing options, it is a good idea to come up with a budget and obtain quotes. It is even more helpful to think about ways you can then reduce these remodelling costs. For example, when choosing lighting fixtures, you might find that you are okay with choosing a nice chrome fixture instead of going for the original brass you were considering. You may decide to paint the cabinets on your existing vanity and change the hardware instead of installing a brand new one. There are ways to reduce the costs of remodelling with just about every area in your bathroom. With tiles, you can save a lot simply by shopping around and comparing prices. Many stores will have high-end tile on sale, so timing can be your best friend. One of the AAS teams favourite places to source tiles in Perth is Craft Decor.

Places to Acquire Financing

Now that you have worked hard to calculate and reduce the total costs of your bathroom remodel, you can now begin looking for financing options. Your local bank or credit union is often a good place to start, but definitely not the only option. There are some  financial institutions that provide products specifically for home renovations, such as Westpac Equity Access Loan, while others may be more likely to provide financing if you are switching to more energy-efficient plumbing or lighting fixtures and can reduce your yearly power costs. Consider big and small lenders when determining who has the best rates for your bathroom remodel financing. Another option, and our preferred method, is consulting a finance broker. Brokers often have existing relationships with all the big banks and can save you time trying to find the right product. AAS Renovations and Maintenance broker of choice in Perth is Surrey Road Finance.

How to Get Financing For a Bathroom Remodel

How to Get Financing For a Bathroom Remodel

The final step is to actually apply for financing. As with all loans, the lender wants to know if you can pay the loan back and find out what your financial situation is. This means proving that you have stable employment, pay your bills on time, and have a good credit rating. Before applying, you should request a copy of your credit report and score to see if the information is valid. If your score is low, be prepared to explain it and prove to a lender why they should approve your loan.
Some good ways to improve your chances of being approved for financing include:

Have a positive credit history and score.
Show proof of income and paying bills on time.
Have collateral, such as a house or car.
Be willing to provide a deposit or down payment.
Have a co-signer for the loan.

Having low credit doesn’t necessarily mean a denial for the financing, but it might mean paying a higher interest rate. Consult multiple lenders to ensure you have chosen one that is reputable and would be willing to work with your financial situation.

If you would like to talk to someone about how you can obtain finance for your bathroom remodel, our team would be happy to help and point you in the right direction.