The Broker Times Market Report

The Renovation Boom

Why 2026 is the year of "Improve, Not Move"

1

The "Dead Money" Trap

Why are Australians renovating? Transaction costs have made moving prohibitively expensive. Stamp duty alone consumes capital with zero return.

Moving vs. Renovating

-$80k
COST

MOVING

Stamp Duty + Fees (Lost Capital)

+$80k
ASSET

RENOVATING

Value Added to Home

HIA Forecast

2026

The year household renovation spending normalizes and peaks as rates stabilize.

Market Volume

3x

Current lending value for renovations compared to pre-pandemic levels.

2

The Reno-Matrix: Which Loan?

Avoid declined applications by matching the project to the right product immediately.

Is the project STRUCTURAL?
YES

Construction Loan

Progress payments & 'As If Complete' valuation mandatory.

NO
Is cost > $100k?
YES Construction Loan
NO Top Up / Cash Out
3

The Green Rate Arbitrage

Don't just fund the renovation. Use energy-efficient upgrades (Solar, Glazing) to qualify the entire loan for a lower rate.

  • Eligible: Solar Panels & Battery
  • Eligible: Double Glazing
  • Eligible: Heat Pump Hot Water
Standard Variable Rate ~6.04%
High Interest
Green Loan Rate (e.g. CBA/Bank Aus) ~3.99% - 4.63%
HUGE SAVINGS

*Rates indicative based on current major lender green offers.

THE BROKER TIMES

Breaking News for Modern Brokers

Sources: Housing Industry Association (HIA) Forecasts 2025/26, Australian Bureau of Statistics (ABS) Lending Indicators, Lender Product Sheets.