North Shore Sydney has long been known for its charming older homes, classic federation-style properties, and coastal character. But with these timeless homes often comes the need for modern upgrades — whether it’s a kitchen refresh in Mosman or a full extension in Frenchs Forest.

In 2025, with construction costs stabilising and property values on the rise, now is a smart time to consider financing options for your project. Choosing the right home loan for renovations on North Shore Sydney can mean the difference between a smooth project and a financial headache.

This guide is designed to help you navigate your options, compare lenders, and make informed decisions that suit your goals — whether you’re renovating to sell, lease, or live more comfortably.

Let's get started.

Why Renovate in North Shore Sydney in 2025?

Property demand across the North Shore continues to rise, and so does the value of upgraded homes. According to CoreLogic’s July 2025 Report, homes that underwent structural renovations in suburbs like Lane Cove, Killara, and Dee Why saw an average price uplift of 12.4% compared to non-renovated counterparts. With rising property prices, renovations have never been more appealing.

Renovating allows you to:

• Increase your property value
• Improve rental yield
• Avoid the costs of moving or upsizing
• Modernise your space without leaving your dream location
  
  

What Types of Loans Are Best for Renovators?

When it comes to home loans for renovators in North Shore Sydney, there are several options depending on your renovation scale and financial situation.

1. Equity Release / Home Equity Loan

If your property’s value has increased, you may be able to access that equity to fund renovations. This is often the best approach for many North Shore home owners.

3. Construction Loan

For larger projects involving structural changes, construction loans are where funds are released in stages as work progresses. These are a little more complex so please contact us here if you need help.

4. Personal Loan

For smaller, cosmetic upgrades like a bathroom facelift or repainting - without touching your home loan.

We’ll assess your goals and match you with lenders offering the best options for your situation.

How Much Can You Borrow for Renovations?

Your borrowing power depends on your current property value, the type of renovation, and your financial situation. If your property is valued at $2 million and your current loan is $1.2 million, you may be able to borrow an extra $400,000–$500,000 for renovations without paying lenders mortgage insurance (LMI).

A local mortgage broker like Sabea will help you calculate your borrowing capacity and structure your loan smartly.

Generally when it comes to renovations:

• Lenders allow you to borrow up to 80–90% of your home’s value, including after-renovation estimates.
• You may need building plans, costings, and a licensed builder’s quote for larger projects.
  
  
  

Should You Refinance to Fund Your Renovation?

Refinancing your mortgage is a common strategy for funding renovations. In 2025, many lenders are offering refinance cashback offers (up to $3,000), which could offset some of your upfront costs. We’ll compare your current home loan against over 60 lenders to see if refinancing is the right move before you start renovating.

Here's why refinancing could work:

• You may be eligible for a lower rate than your current loan
• You can access equity without needing a new loan
• You might consolidate debt to improve cash flow
  
  
  

What Documents Do You Need to Apply?

Applying for a renovation loan requires some specific documentation, especially for construction or major structural work.

You’ll usually need:

• Recent property valuation
• Building plans or council approvals
• Quotes or contracts from licensed builders
• Proof of income and liabilities
• Current home loan statements

Note: We can handle all the legwork for you and liaise with lenders to get the paperwork sorted.

How Do Lenders Assess Renovation Loans?

For bigger projects, lenders may perform a "post-renovation valuation" to estimate your home's new worth, which can help you borrow more. And remember when it comes to most North Shore homes in high-demand, such as those near school zones or with water views, they can often attract a higher value after renovation.

Lenders will assess:

• Your current equity and LVR (loan-to-value ratio)
• Your income and ability to service additional debt
• The scope and purpose of the renovation
• Whether the work will increase the property value
  
  

What Are the Risks to Watch Out For?

Renovating can be rewarding, but it comes with risks — especially financial ones. That’s why mortgage brokers are here, we help to manage your financial risks while helping you get the most out of your project.

Common traps include:

• Underestimating costs or running over budget
• Loan structures that restrict cash flow
• Inflexible loan terms or hidden fees
• Choosing lenders unfamiliar with renovation lending
  
  
  

FAQs: Home Loans for Renovators North Shore Sydney

Can I use my home equity to fund a renovation?
Yes, most homeowners can access equity for renovations, provided the LVR stays within acceptable limits and repayments remain affordable.

Do I need council approval before applying for a loan?
For structural changes, yes. Lenders usually require plans and permits before approving construction loans.

What’s the difference between a construction loan and a home equity loan?
A construction loan releases funds in stages, while a home equity loan provides a lump sum or line of credit upfront.

Is refinancing better than getting a renovation-specific loan?
It depends on your current rate, equity, and goals. Refinancing can lower repayments and provide extra funds.

Can I use a personal loan for minor renovations?
Yes, for cosmetic updates or smaller jobs, a personal loan can be quicker and easier to manage.

How much can I borrow for a renovation in 2025?
This depends on your home’s value, your existing mortgage, income, and renovation costs. We’ll help you assess this accurately.

Are there government grants for renovations in 2025?
As of now, most renovation grants have ended, but certain energy efficiency upgrades may still qualify for local rebates.

Planning to Renovate? Let’s Get the Right Loan in Place

Choosing the right loan is one of the most important decisions you'll make before starting a renovation. Whether you’re refreshing a Northern Beaches cottage or adding a second storey in Roseville, the right finance can make the process smoother and more cost-effective.

At Sabea Financial, we’re experts in home loans for renovations on the North Shore, and can help you unlock your equity, compare renovation loan options, and find a lender that matches your project goals and timeline.

Simply call us today on 1300 001 755, email info@sabea.com.au, or visit our homepage to book your free consultation. Let’s get your renovation dreams off the ground - with the finance to make it happen.