Saving on Home Renovations: Guide & Budget-Friendly Ideas

Avoid a budget blowout by working with what you’ve already got.

Ms Barber recommends painting over old tiles to give them a modern look instead of ripping them out and replacing them with brand new ones.

“Tiles eventually date, even when they’re still in good condition, and they can be expensive to replace. [Painting them] is a cheap, easy DIY solution. Alternatively, you can bring professional tile resurfacing companies in, but that will cost you substantially more,” she told Savings.com.au.

Kitchens can be among the most expensive parts of the home to renovate, but there are opportunities to save, according to Ms Barber.

“Why rip out a perfectly good kitchen when the only problem is the drab, dated colour scheme? If the carcasses and doors have still got plenty of life left in them, just choose a modern tint and get busy on the door fronts. Be sure to update the handles or knobs at the same time.”

Upcycling furniture is another winner. A tired timber coffee table can be sanded and varnished, while a fresh coat of paint can transform old bookshelves, sideboards or drawers.

2. Don’t move the plumbing

If you’re renovating a bathroom, keeping the toilet, shower and vanity in their original positions can save thousands. Moving anything involving electrical or plumbing fixtures will cost considerably more and blow out your reno budget. The key is to keep all the facilities in the same spot.

The same applies to kitchen and laundry facilities.

3. Cheap cosmetic fixes

If structural work is beyond your budget, cosmetic changes can still have a big impact.

Lighting is an easy win.

“Old kitchens often have just one central oyster light, which isn’t effective. Consider LED downlights, track lighting or pendant lights over an island bench. Ideally you want ambient, task and feature lighting,” Ms Barber said.

Paint is another powerful update.

“For renovators, it’s liquid gold. In open-plan areas, paint the kitchen and living spaces the same colour so they flow. Always test samples in daylight and at night before committing,” she said.

4. Improve the layout

You can sometimes make simple structural changes without completely blowing the budget, as long as you avoid load-bearing walls.

“If there’s a simple gyprock or non-load-bearing wall boxing in your lounge room (separating your lounge room from an adjoining kitchen or dining room), simply removing a wall or two can open up all your living spaces,” Ms Barber said.

“Open-plan layouts are one of the key ways to add value,” she added. “Once complete, update your home and contents insurance – it’s something renovators often forget.”

According to the renovation expert, even small tweaks can improve usability: extra cabinets, new shelving, or adding a breakfast bar or island.

Mr Rigby also recommends mirrors.

“Mirrors are an inexpensive way to instantly give a feeling of space to a room. Try placing a mirror behind the sofa, a shelf in the living room, or behind the headboard in a bedroom. In dark hallways, they are a great way to add space and open up the walkway.”

5. DIY vs tradies

Some tasks – like waterproofing, electrical work and plumbing – must be left to professionals. But painting, ripping up carpet, or basic demolition can be safe DIY jobs.

If you can pull in some favours from friends and family, you can significantly drive down the cost of your home renovation.

6. Use low-cost materials

Swapping to more affordable materials is an easy renovation win. It will save you money, and it doesn’t have to affect the overall aesthetic of your renovation.

“You can do this very cheaply with products like water-resistant laminate floorboards or vinyl floor planks, which quickly disguise old tiles or lino. These products mimic the look of real timber floorboards but are quicker, easier and less expensive to work with,” Ms Barber said.

If you can’t afford a marble or granite benchtop, laminate or engineered stone can look just as good – and for a fraction of the price.

7. Build a contingency into your budget

If you’ve ever watched a renovation show, you’ll know: unexpected costs are inevitable. Older homes may hide asbestos, mould, DIY disasters, termite damage or outdated wiring.

Even delays, such as bad weather or slow shipping, cost money. A budget buffer prevents you from cutting corners elsewhere.

Borrowing money for renovations

Unless you’ve got cash stashed away to fund your home renovation, you’ll have to explore other options to finance your project. We’ve rounded up a few different ways to fund your renovation project – depending on your situation and the extent of the renovation you’re planning.

1. Unsecured personal loan

An unsecured personal loan is essentially a loan that can be used to finance whatever you like, including home improvements. These generally come with higher interest rates and fees than other loans due to the lack of guarantee (security).

The table below features unsecured personal loans with some of the lowest interest rates on the market.

2. Secured personal loan

A secured personal loan allows you to borrow money by putting up an asset as security for the loan. Interest rates of secured personal loans are generally lower than those of unsecured options.

3. Mortgage finance

If you already have a mortgage, you may be able to top up your existing home loan to fund your renovation. This means increasing your loan amount using the equity you’ve built in your home.

If your loan has a redraw facility and you’ve made extra repayments, you could also use those funds to help cover renovation costs.

4. Construction loan

A construction loan is designed for major renovations, extensions or structural changes. Instead of receiving the full amount upfront, the lender releases funds in stages (known as progress payments) as each part of the renovation is completed.

The loan amount is usually based on the builder’s contract and an “as-if-complete” valuation of your property, rather than minor cosmetic works. These loans aren’t typically used for small updates like painting or replacing fixtures.

Costs of a home improvement loan

Whether it’s a personal loan, refinance, construction loan or even a credit card for smaller purchases, compare:

• Interest rates
• Upfront fees
• Ongoing fees
• Flexibility and repayment terms

This helps you understand the real cost of financing your renovation.