Australian homeowners are renovating in growing numbers, and new figures suggest many are funding the work through their home loan rather than higher-cost finance. Renovation loans rose 16 per cent over the past year, according to National Australia Bank data — a sign that “improve, don’t move” is becoming the default for a lot of families in 2026.
What happened
NAB reported that renovation loan demand increased 16 per cent in the year to 30 April, with growth recorded in every major state. Queensland led the way at 25 per cent, followed by Western Australia (17.9 per cent), South Australia (15 per cent), Victoria (10.8 per cent) and New South Wales (10.7 per cent). Renovation lending rose 15 per cent in the past month alone.
According to NAB, most homeowners are renovating to make their homes more liveable — adding space for a growing family, creating a proper area for hybrid work, or improving energy efficiency to manage power bills. At the same time, NAB economists cautioned that higher fuel prices could push building material and labour costs higher again, so careful budgeting matters.
What this means for you
If you have owned your home for a few years, you may have built up usable equity — the difference between what your property is worth and what you still owe. That equity can often be used to fund a renovation at home-loan interest rates, rather than relying on a personal loan or credit card at a higher rate. Whether this suits you depends on your current loan, how much equity you have, and your repayment comfort.
A few practical steps before you start: get firm written quotes, build a buffer into your budget for possible cost movements, and check how much usable equity sits in your property. Reviewing your existing home loan at the same time may reveal options that better fit a renovation plan, subject to your circumstances.
Talk to a Finance Hub broker
Every renovation budget is different, and the right funding structure depends on your numbers. Talk to a Finance Hub broker — call 0430 11 11 88 or book a time online to work out how much equity you could access and what it could mean for your repayments.
Source: Broker Daily, 4 June 2026.
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