Thinking Bigger with Your Property? It’s Time to Decide: Refinance or Remodel
If you’re a property owner or investor on the Gold Coast, you’ve probably asked yourself a big question lately:
Should I refinance and save, or invest in a renovation and increase value?
It’s a timely debate, especially in 2025’s unique market landscape. With interest rate shifts, property price rebounds, and surging demand in hotspots like Southport, Palm Beach, and Labrador—smart lending decisions matter more than ever.
As a local Gold Coast mortgage broker, I’ve seen how this decision plays out differently for each homeowner or investor. So instead of just giving a straight yes-or-no, let’s look at it from a strategic perspective—and help you decide what move aligns with your goals.
Understanding Today’s Gold Coast Market
Let’s set the scene. Right now:
- Gold Coast unit prices are climbing, especially in coastal and investor-friendly suburbs.
- Palm Beach: +7% in 12 months
- Labrador: +5%
- Southport: +6.3%
- Renovation costs are still high, but stabilising after pandemic-era spikes.
- Interest rates are expected to ease, with the RBA signalling possible cuts. This makes refinancing more attractive.
The market is shifting from reactive to strategic. That’s where your decision—refinance or remodel—can unlock real value.
Option 1: Refinance – Lower Costs, More Flexibility
Let’s talk about refinancing first. Many property owners stick with their original loan for too long, not realising they’re paying what we call the “loyalty tax”—higher rates than new borrowers.
Benefits of Refinancing in 2025
- Access lower interest rates:
With rate cuts on the horizon, switching could reduce your repayments by hundreds per month. - Improve your loan features:
Offset accounts, redraw facilities, and flexible repayments can make life (and investing) easier. - Release equity:
If your property has increased in value, refinancing could let you tap into that equity—to fund renovations, buy another property, or consolidate debts.
Example:
A unit in Southport bought in 2020 for $420,000 is now worth around $485,000. Refinancing that equity opens doors.
When Refinancing Makes Sense
✅ You haven’t reviewed your loan in over 2 years
✅ Your current interest rate is over 6%
✅ You want to fund a future investment
✅ You’re feeling the pinch of high repayments
If any of those tick your box, refinancing isn’t just smart—it could be strategic. And with a local Gold Coast mortgage broker, the process can be much smoother than you’d expect.
Option 2: Remodel – Boost Long-Term Property Value
Now for the flip side: renovating or upgrading your property. While costs are still a consideration, the potential upside can be massive—especially in a growth suburb.
What Makes Renovating Worth It?
- Increase resale value:
Cosmetic upgrades (kitchens, bathrooms) can add up to 10–15% in resale gains, depending on your location and timing. - Boost rental yield:
Gold Coast rental demand remains high. A fresh look or layout improvement can help attract quality tenants—and command higher rent. - Make the space work for your needs:
Whether it’s a home office or multi-generational living, updating your property means living in it longer—and happier.
Example:
A duplex in Labrador with an updated kitchen and bathroom recently sold for $85,000 more than a similar unrenovated one. Renovation = instant capital growth.
Renovation Financing: What Are Your Options?
This is where strategy matters. Renovating doesn’t always mean dipping into savings. You can:
1. Use Equity from Refinancing
Roll renovation costs into your mortgage. If your lender values your property high enough, this is often the cheapest option.
2. Apply for a Renovation Loan
Some banks offer loans specifically for home improvements—often with flexible drawdowns as work progresses.
3. Personal Loans or Lines of Credit
Great for smaller jobs under $50k. But beware of higher interest rates.
Not sure what suits you? That’s where talking to a Gold Coast mortgage broker comes in. We match your goals with the right finance solution.
So… Refinance or Remodel?
Here’s how to approach the decision:
| Goal | Best Option |
| Lower repayments | Refinance |
| Upgrade or modernise home | Remodel |
| Build long-term equity | Both |
| Increase rental yield | Remodel (possibly via refinance) |
| Buy another investment | Refinance to release equity |
Sometimes it’s not either/or—it’s both. For example, refinance your existing mortgage to free up equity, then use it to fund smart, value-adding renovations.
Strategic Considerations Before You Act
Before you jump into either move, ask yourself:
- What’s my long-term plan?
Sell in 2–3 years? Renovate.
Hold for 10+ years? Refinance now and wait for lower rates. - Is my suburb still rising?
Some areas are hitting price ceilings, while others (like Palm Beach, Coomera) still have legs. - What’s the rental market like?
If you’re investing, think yield. If it’s your home, think lifestyle. - Have I reviewed my loan lately?
If your current lender isn’t competitive, you’re likely paying more than you should.
Why Work with Flexible Financial Solutions?
With so many variables, you don’t want to go it alone—or get lost in comparison sites.
Here’s how we can help you:
- Local knowledge: We know the banks, suburbs, and trends.
- Access to 30+ lenders: We find the deal that works for you, not the bank.
- Tailored advice: Whether you’re a first-home buyer, seasoned investor, or upgrading family.
- We do the heavy lifting: Paperwork, negotiation, follow-ups—we’ve got it handled.
Final Thought: Your Property, Your Strategy
Refinance or remodel—it’s not just a question of money. It’s about aligning your lending with your life goals.
Whether you’re trying to maximise returns, ease financial pressure, or simply create a better space to live, both options are tools. You just need the right plan—and the right people—to guide you.
If you’re ready to explore your options, I’m here to help.
Let’s Talk Strategy
As a Gold Coast mortgage broker, I help property owners navigate these decisions every day.
