Structural Changes to your home

There's two words in the lending market. One is called non structural renovations and the other one is called structural renovations. Hey, it's Aaron from Diagnostics and Finance and I wanted to unpack these two terms so that you guys understand it. Non structural renovations to start with are renovations like landscaping, driveways, fencing or the grass, which is part of landscaping, maybe a deck, things like that, stuff that don't interfere with the structure of your property. And this is commonly done with home loan applications to release equity so your value is greater than your mortgage within the specific lending criteria to be able to extract some value to complete these tasks like non structural renovations. Other non structural renovations could be your kitchen, bathroom, painting, other items that are attached to the walls, but nothing to do with the original structure of the home. On the other hand, structural renovations are when you either put in another floor on your roof, another, another level on the house, you're adding another room, you're gutting things out, you're totally re changing the structure of the property. And this is quite an easy way to lend some money as well. The only change is that the bank will consider this as a construction loan. So they will look at the house as if it was tentative on completion, so an on completion valuation and then they will put you under a progress claim. So you'll have stage one, stage two, stage three, stage four. And the benefit by doing structural renovations when you have plans to go up a level is that the bank knows about what's going on with your property and then you are able to be protected and you're able to have the right requirements from the builder, the right requirements from the bank, and the joint purchase environment that you and the bank are in is all protected and going down the right path. Hey, it's Aaron from Diagnostic and Finance. Have a great day.