How can I obtain a quote?

To start the process of obtaining a quote from us we ask that you fill in your information on the contact us page. Once your contact information has been entered it will take you through to our questionnaire. Here, we ask you for a basic outline of your enquiry to see if we are able to assist you. This will ask you about the number and type of rooms you are looking to add to your home, the basic type of materials you would like to use such as roofing and flooring. We will also ask whether you have plans, what your budget is and your timeframes for the build. – If you already have plans and/or DA/CC/CDC approval, please attach them to the questionnaire along with any additional surveys, engineering plans, reports that you may have. Once we have received your details, the builder will review the information and we will contact you for further details or to schedule an appointment for him to meet with you ahead of providing you with a detailed quote.

I don’t know what my budget is, why do I have to provide one?

Don’t overthink this! We don’t expect you to know how much the build will cost. However, as the home owner you will have an idea of how much you have/can borrow to complete the works. We need to know this so that we can advise you if this amount is realistic. We don’t want to waste your time and we will be honest and upfront with you right from the start.

I have plans, can you build based on these plans?

Through our extensive experience building additions and extensions, we have found that when we are presented with plans provided by an external provider, these often do not take into consideration the real cost of building. To address this challenge we make sure that we look after the entire process from start to finish. We will work with you to create plans that will align with your quote. If you have had plans prepared in advance, we ask you to set these aside and work with us and our draftsperson to ensure that we can tailor your addition utilising the most cost-effective design that takes into consideration all the intricacies and requirements of building an addition or extension. Through our extensive experience in building additions and extensions, we know what can work, what is achievable in line with build cost expectations and what to avoid when designing an addition or extension. This experience ensures that we know what is the best way to utilise the funds you have available to achieve the best outcome for you and your family.

How to Finance a Home Extension, Renovation or Second Storey Addition in Sydney (2026 Guide)

Financing Your Home Extension, Renovation or Second Storey Addition

Building a home extension, renovation or second storey addition is one of the smartest ways to create more space without leaving the home and location you love.

While we don’t provide financial advice, one of the most common questions we’re asked is, “How do people usually pay for a project like this?”

The good news is that there are several funding pathways available. Once you understand the likely cost of your project, your lender or mortgage broker can help you determine which option best suits your individual circumstances.

Below are some of the most common funding options homeowners use.

1. Construction Loan

Many lenders offer construction loans specifically designed for building projects.

How it generally works

Your lender approves the total build cost for your project as outlined in the HIA Build Contract
Funds are released in stages as construction progresses.
Interest is typically charged only on the amount drawn down during construction.

Why many homeowners choose this option

Designed specifically for residential building projects.
Aligns with staged progress payments.
Helps manage cash flow throughout construction.

Commonly suited to: Homeowners undertaking substantial renovations, extensions or second storey additions.

2. Using Equity in Your Home

If you’ve built up equity in your property, you may be able to borrow against that equity to help fund your project.

How it generally works

Your lender assesses the current value of your home.
Available equity is calculated.
Subject to approval, funds may be used towards planning, approvals and construction.

Why homeowners consider this option

May avoid arranging a separate construction loan.
Can provide access to competitive lending products.
Can assist with upfront project costs, specifically the Planning & Approval costs

Commonly suited to: Homeowners who have owned their property for several years and have built strong equity.

3. Refinancing Your Existing Mortgage

Some homeowners choose to refinance their existing home loan to incorporate additional funds for their renovation or extension.

Potential benefits

Consolidates borrowing into one loan.
May provide access to different loan features or interest rates.
Can simplify project funding.

Commonly suited to: Homeowners already considering reviewing or restructuring their existing mortgage.

4. Combining Savings and Finance

Many homeowners choose to contribute some of their own savings while financing the balance of the project.

A common approach is to:

Use savings towards planning and approval costs.
Finance the construction component.

Why this approach may work

Can reduce total borrowing.
May improve lending capacity.
Can reduce long-term interest costs.

Understanding Your Total Project Budget

Before speaking with a lender or mortgage broker, it’s helpful to understand the full cost of your project.

Most home additions involve two distinct stages.

Stage 1 – Planning & Approvals

This typically includes:

Site survey
Architectural design
Structural engineering
Council or CDC approvals
Specialist reports
Certification
Authority and application fees

Stage 2 – Construction

Construction costs will vary depending on factors such as:

Project size
Site conditions
Design complexity
Material selections
Compliance requirements
Existing home conditions

Having a realistic understanding of these costs helps you prepare for discussions with your lender and understand your overall funding requirements.

Before You Speak to Your Broker

Although every lender has different requirements, they will generally want to understand:

What you’re planning to build
An indicative project cost
Whether planning approvals have commenced
The expected construction timeframe
Your property’s current value
Your financial position and borrowing capacity

This is where we can help.

Our consultation process provides a clear understanding of your proposed project scope and an indicative cost estimate, allowing you to have a more informed discussion with your lender or mortgage broker.

When Should You Speak to a Lender?

We generally recommend speaking with your lender or mortgage broker once you have a clear understanding of your project scope and indicative costs.

At this stage, they can help you:

Assess your borrowing capacity.
Explain the funding options available to you.
Discuss finance pre-approval where appropriate.
Determine what is achievable based on your financial circumstances.

Having both a realistic project budget and an understanding of your borrowing capacity allows you to move forward with greater confidence.

Not Sure What Option Is Right for You?

Every homeowner’s financial situation is different.

While we can’t recommend financial products or provide financial advice, we can help you understand what your project is likely to cost before you speak with your finance professional.

Once you have an indicative project estimate, you’ll be better positioned to:

✔ Understand your total project budget.

✔ Have an informed discussion with your lender or mortgage broker.

✔ Explore funding options suited to your circumstances.

✔ Determine what is achievable based on your borrowing capacity.

Book a Consultation

At 32 Degrees Building, we provide tailored project assessments and detailed cost estimates for home extensions, renovations and second storey additions across Sydney.

Our consultation includes:

A professional assessment of your home and project.
An indicative project cost estimate.
Advice on likely planning and approval requirements.
Guidance on the building process from concept through to construction.

Having a realistic understanding of your project’s likely cost can make conversations with your lender or mortgage broker much easier and help you move forward with confidence.

Call (02) 4647 2324 or book a consultation today to discuss your project and explore what’s possible.

Disclaimer

The information provided in this article is general in nature and is intended to help homeowners understand common funding pathways used for home extensions, renovations and second storey additions. It does not constitute financial, lending or legal advice. We recommend speaking with a qualified mortgage broker, lender or financial adviser to determine the most appropriate funding solution for your individual circumstances.

32 Degrees Building

Specialists in second storey additions, ground floor extensions and major home renovations across Sydney.

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