Smart home improvement guide: Budgeting tips, green upgrades and finance options

Two people assessing a partially renovated room with exposed walls and scattered metal debris.
Therese McGrath
Therese McGrath, Chief Financial Officer
Reviewed: 02 Feb 2026
Read time: 5 min

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  Costing for renovations  |   Renovating on a budget |   Making your home greener | 
   Financing home improvements

Whether you're planning a full renovation or just want to make your home more energy-efficient, smart planning can help you stay on budget and make meaningful upgrades. This guide covers how to budget for renovations, choose eco-friendly improvements and explore finance options that fit your lifestyle.

Budgeting for renovations

Renovating your home can be exciting, but it’s easy for costs to spiral. Here’s how to keep your plans realistic and your budget on track.

House icon with a hammer representing setting a clear scope for home renovation projects.

Start with a clear scope

Are you updating a bathroom, adding a kitchen or building an extension? The size and complexity of your project will shape your budget. Renovating a kitchen or bathroom can cost as much as $30,0001 depending on finishes and labour.
Icon of coins and dollar sign symbolizing planning a renovation budget.

Plan your renovation budget

Include materials, labour, permits and a buffer for unexpected costs. Electricians, plumbers and council approvals can add to your total. It’s a good idea to allow 10-20% extra for surprises.
Document icon with dollar sign showing the importance of comparing renovation quotes.

Quote and compare

Ask suppliers for a breakdown of labour and material costs. This helps you spot savings and avoid hidden fees.
Laptop and a smartphone icon representing online forums for renovation advice and support.

Look for peer support

Online forums like Renovate Forum can offer advice, inspiration and practical tips from experienced renovators.
Lightbulb icon symbolizing backup plans and flexibility in home renovation.

Have a plan B

If one part of your plan can’t go ahead, be ready to adapt. Flexibility helps you stay on track without losing momentum.

Renovating on a budget

If you’re looking to refresh your space without a full-scale renovation, here are some low-cost ideas that can make a big impact.

Paint roller icon symbolizing using fresh paint to transform and boost home value.

Use the power of paint

A fresh coat of paint can transform a room and boost your home’s value. DIY painting is cost-effective, and professional painters may charge in excess of $23,000 to paint an average home in Australia2.
Wrench and screwdriver icon representing replacing fixtures for quick home upgrades.

Replace small fixtures and fittings

New taps, doorknobs or handles can modernise a space without major expense. It’s a quick way to update the look and feel of a room.
Sofa icon illustrating adding cushions, mirrors, and plants to enhance home interiors.

Accentuate with accessories

Cushions, mirrors, artwork and indoor plants can breathe new life into tired interiors. These finishing touches help personalise your space.
Binocular icon symbolizing buying second-hand furniture for affordable home improvement.

Shop second-hand

Marketplace and ex-demo furniture can help you achieve your desired look at a fraction of the cost. Not everything has to be brand new.

Making your home greener

Eco-friendly upgrades don’t just help the planet — they can also reduce your energy bills and improve comfort. Here are some easy ways to make your home more sustainable.

Harvest the skies

Rainwater harvesting systems can help reduce water bills and support your garden or toilet systems.

Install solar panels

Rooftop solar can save households around $1,300 per year on electricity bills. It’s a long-term investment with environmental and financial benefits.

Add plants indoors and out

Plants can improve air quality, reduce stress and add life to your space. They’re a simple way to boost wellbeing and aesthetics.

Wear white

In sunny climates, white roofs reflect heat and reduce cooling costs compared to darker colours.

Seal the leaks

Air leaks account for up to 25% of winter heat loss. Sealing gaps around windows, doors and vents can improve comfort and reduce energy use.

Improve insulation

Roof and wall insulation helps regulate temperature year-round, lowering heating and cooling costs.

Switch to LEDs

LED bulbs use less energy and last longer than traditional lighting, saving money on bills and replacements.

Kill the vampires

Standby power — or “vampire power” — can account for up to 25% of your electricity bill. Switch off appliances at the wall to cut waste.

Follow the stars

Energy Star ratings help you choose appliances that cost less to run. The more stars, the more efficient.

Financing your home improvements

If you’re ready to renovate but don’t have the cash upfront, there are flexible finance options available. 

Unsecured personal loan

Pepper Money offers unsecured personal loans from $5,000 to $50,000 – ideal for smaller renovations like a bathroom or kitchen refresh. These loans are quick to apply for and don’t require collateral.

Secured personal loan

For larger projects, secured loans let you borrow between $15,000 and $100,000 using your property as security. This can help you access more funds at competitive rates.

Refinancing your home loan

If you’ve built up equity in your home, refinancing could help you fund renovations at home loan interest rates. Options include:

  • Cash-out:
    Access funds upfront for smaller projects
  • Progress payments:
    Suitable for structural work, with payments made directly to your builder
  • Using savings:
    Consider the opportunity cost — if loan interest is lower than your savings return, borrowing may be more efficient

Ready to upgrade your home?

Whether you’re renovating, going green or both, Pepper Money offers flexible finance options to help bring your plans to life. Speak to our team to explore what’s possible.

Sources:

1 How much does a home renovation cost? [2025]:

2  How Much Does It Cost to Paint a House? [2025]: 

Therese McGrath - Pepper Money Chief Financial Officer

Contributor | Therese McGrath, Chief Financial Officer

Therese brings over 25 years of international experience in finance, strategy, and operations. She joined Pepper Money in January 2018 as Chief Financial Officer. In this role, she provides the leadership and financial and operational management necessary to ensure Pepper Money achieves its strategic goals and objectives. Read more.

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