Q+A

> What home reno spending pitfalls should I avoid? Losing a bedroom is a decision you should never make lightly. Also, if this is your forever home don’t buy cheap window treatments, invest in something that will stand the test of time. Lastly, don’t overspend in areas you don’t use often.

> What are the benefits of taking out a personal loan for home renovation? A personal loan gives you greater flexibility when borrowing, does not require security, and allows you to pay off what you’ve borrowed over a shorter term than an average mortgage. This means you could enjoy a significantly lower interest cost compared to putting it on a longer-term mortgage.

> What if I’m not sure how much my renovation will cost yet? When you complete a personal loan application with Gem, we can tell you how much you’re able to borrow so you can plan with confidence. We offer great flexibility so when you do draw down the loan you can choose your payment frequency, make bulk payments and even pay the balance off early with no early repayment fees or charges.

> Will I pay more interest on a personal loan? If you are looking to finance a home renovation, online debt calculators can be helpful for working out the total interest you will pay based on the length and interest rate of your borrowing. With a Gem Personal Loan, your interest rate is based on your personal circumstances and if you have a great credit rating we could offer you a better interest rate on your loan. You may be surprised that a $15,000 personal loan on a three-year fixed term at 14.99% p.a. would cost $3,717 in interest, whereas the same amount on a 15-year mortgage at the median floating rate at 5.82% p.a. would incur double the interest costs at $7,522. Our loans start from 12.99% through to 29.99% fixed per annum.