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Straight Answers · Refinancing
Should I wait until my renovation is finished before I refinance, or do it now?
Bayley Clarke · Mortgage broker on the road · Last checked 11 November 2026 · 2 min read
The short answer
If you can help it, it's better to wait until your renovations are done. The valuer is going to rock up, see the painting's not done, the gyprock isn't set and there's still a demo site in the bathroom, and value the place on what's in front of them.
They may not see the property as livable, or if they do, they're more than likely going to mark the valuation down. That's not a true reflection of what your home is going to be worth post renovation, and it's the finished value you want working for you.
The 60 second version, filmed from the driver's seat. The rest of this page is the detail underneath it.
Why a half finished reno hurts the valuation
A bank valuer values the property as it is on the day, not as it will be once you've finished. They don't give you credit for the kitchen that's still in boxes in the garage. If anything, unfinished work can count against you, because from the bank's point of view a half done job is a cost someone still has to pay to finish.
If the place isn't livable, with no working bathroom or kitchen, some banks won't value it as a standard home at all. Either way, a lower valuation means your loan is a bigger percentage of the property's value, which can mean a worse rate, less equity to play with, or mortgage insurance you didn't need to pay.
What waiting gets you
Once the renovation is done, we can get a couple of valuation reports and a couple of valuers to go and see what they reckon your place is worth. Different banks use different valuers, and the numbers can differ, so that's worth doing on a freshly finished home.
Then at that point, we can go shopping across the banks and see which one's going to be the better fit when it comes time to actually refinance. You're walking in with the best version of your property, and the valuation, the rate and the equity all reflect the work you've put in.
The honest bit: if you need money to finish, that's a different conversation
Waiting works when you can fund the rest of the reno yourself. If you're refinancing because you've run out of money to finish, the question changes from 'when do I refinance' to 'how do I fund the rest', and that can mean a cash out or a construction style loan based on the finished value.
That's worth a chat before you're stuck, not after. There are ways to fund the finish, but they take planning.
Renovating and thinking about refinancing?
A 30 minute call. We go through where the reno is at, what you owe, and whether to refinance now, after, or fund the finish another way.
No cost to you. The bank pays me when a loan settles. · How I get paid
Next question
Can I pull equity out for a reno, and will the bank lend me the money for the work?Generally yes, as a cash out: top up the existing loan or add a separate split for the reno.
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