Landlords, ensure you're compliant

Many landlords will need to insulate their properties by 1 July under new legal standards for rental homes or face a $4,000 fine.

The new legislation, introduced under the Residential Tenancies Act, requires landlords to install sufficient roof and under-floor insulation.

For a three-bedroom home, the estimated cost of professional installation could be as high as $4,500.

If you don’t have spare cash available, you have options that could help fund the cost.

Redraw from your mortgage

If you’ve made extra payments on your home loan, you may be able to redraw on the surplus cash in your account.

However, it’s important to understand that redrawing from your mortgage will increase the interest charged over the life of the loan. In addition, this extra cash will need to be repaid.

Depending on your loan, you could incur a fee each time you redraw funds. Be sure to check what fees apply before making redraws a regular occurrence.

Take out a personal loan

Another option is to take out a personal loan to help with the cost of insulating your property.

Because a personal loan will incur interest, be sure to take this into account when working out your preferred loan term.

Apply for a payment plan

While government subsidies expired in July 2018, many local councils are offering payment plans.

If eligible, you may be able to borrow up to $5,000. Successful applicants will want to consider any interest on the loan and will need to make repayments through their council rates.

Contact a Mike Pero Mortgage Adviser for more information on what options might be best for your situation.