Updated: Nov 28
Home renovations are a great way to add value to your property and create a living space you love. When it comes to funding these projects, a personal loan is a popular choice for many New Zealanders. A personal loan for home improvements can be a fast, simple, and flexible way to get the money you need without the complexities of other financing options.
At Harmoney, our unsecured personal loans are a great fit for a wide range of renovation projects, from a new kitchen or bathroom to a new deck or landscaping.
Why a Harmoney Unsecured Loan is a Great Fit for Renovations
When you choose a personal loan from Harmoney, you get a simple and transparent process that's specifically suited for home improvements.
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Keep Your Equity in Your Home: Our loans are unsecured, which means you don't need to use your house as collateral. You don't have to risk your most valuable asset to get the money you need.
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Fast and Simple Process: Our 100% online application and approval process is quick and hassle-free. We don't require tradie quotes or building contracts to approve your loan, so you can get the funds and get started on your project right away.
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Fixed Rate for Easy Budgeting: Our loans come with a fixed interest rate for the entire loan term (3, 5, or 7 years). This means your repayments are predictable, making it easy to budget for your renovation costs.
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Borrow What You Need: You can apply to borrow from $2,000 up to $100,000, which is enough to cover a wide range of renovation projects, big or small.
Unsecured Loan vs. Mortgage Top-Up: A Key Comparison
Another common way to fund a renovation is to increase your mortgage (a "top-up"). While a mortgage top-up might offer a lower interest rate, it comes with a few key differences you should consider.
|
Feature |
Unsecured Personal Loan (Harmoney) |
Mortgage Top-Up |
|
Collateral |
Not required. |
Your home is used as security. |
|
Term |
Shorter term (3-7 years). |
Longer term (often 20-30 years). |
|
Risk |
No risk of losing your home. |
Your home is the collateral. |
|
Process |
Fast, online, and simple. |
Can be more complex, with extra paperwork. |
|
Total Cost |
Higher repayments but can save you total interest over a shorter term. |
Lower repayments, but the paperwork can have a cost, and the top up can significantly increase the total interest paid over 20+ years. |
For many, the simplicity and speed of an unsecured personal loan, combined with the peace of mind of not risking their home, makes it the preferred option for renovations.
References:
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Harmoney New Zealand: https://www.harmoney.co.nz/
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MoneyHub NZ: https://www.moneyhub.co.nz/
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Consumer Protection NZ: https://www.consumerprotection.govt.nz/
