Renovation Refinance › Will renovating add enough value to be worth borrowing?

Will renovating add enough value to be worth borrowing?

Sometimes, but not always. Some renovations add more value than they cost, while others add lifestyle benefit without a matching value lift. It is worth weighing the likely value gain against the borrowing cost before you commit.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

Not every renovation pays for itself. Kitchens and bathrooms often add value, while highly personal or over capitalised work may not. Borrowing to renovate makes the most sense when the project adds value, improves how you live, or both, and the repayments fit your budget. A frank look at the numbers, and local sales, helps you decide.

The key points

Some renovations add more value than they cost.
Others add lifestyle benefit without a value lift.
Weigh likely value gain against borrowing cost.
Avoid over capitalising for the area.

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Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.