12 Essential Home Maintenance Tips to Boost Mortgage Refinancing in Melbourne

Refinancing your mortgage can be a smart financial decision, but it often depends on the condition of your home. In Melbourne’s competitive real estate market, keeping your property in good shape is crucial for maximising its value and securing better financing rates. 

That’s where mortgage brokers come in. They offer valuable advice on which home improvements matter most to lenders, helping you boost your home’s value and make informed choices for successful refinancing.

In this article, we'll explore 12 essential home maintenance tips that can significantly boost your chances of successful mortgage refinancing in Melbourne.

Why Home Maintenance Matters for Refinancing

Maintaining your home is crucial when refinancing, as the property’s condition directly impacts its appraised value. A well-kept home typically receives a higher appraisal, which in turn improves the loan-to-value (LTV) ratio. 

Lenders use the LTV to gauge their risk; a lower LTV means you can qualify for better refinancing rates. Simple actions like regular inspections, timely repairs, and cosmetic updates can significantly influence your home's value during an appraisal.

In Melbourne's competitive housing market—where the median house price was $911,500 as of mid-2024—property condition is even more important. Well-maintained homes consistently attract higher valuations, which are essential for both selling and refinancing. 

Keeping key areas like the roof, HVAC systems, and plumbing in good shape not only enhances your living environment but also boosts your home’s equity. This leads to better refinancing options with lower interest rates and more favourable terms, making home maintenance a vital part of the refinancing process​.

12 Home Maintenance Tips to Secure Mortgage Refinancing

Before you begin the refinancing process, making sure your home is in excellent condition can significantly improve its chances of receiving a higher appraisal. Let’s explore 12 key maintenance tips that will help you enhance your home’s value and secure better financing options.

#1 Regular Roof Inspections

A healthy roof protects your home from leaks, mould, and structural damage. By conducting regular inspections, you can catch minor issues, like missing shingles or water pooling, before they turn into major repairs. A roof in good condition signals to lenders that your property is well cared for.

Pro Tip: Schedule a professional roof inspection at least once a year, especially before the rainy season.

#2 Gutter Cleaning

Clogged gutters can lead to water damage, which affects the foundation and walls of your home. Regular gutter cleaning ensures that water is properly directed away from your home, preventing erosion or flooding issues. Well-maintained gutters show appraisers that your property is in good condition.

Pro Tip: Clean your gutters twice a year, and consider installing gutter guards to minimise debris buildup.

#3 Repaint the Exterior

A fresh coat of paint not only enhances your home’s curb appeal but also provides protection from weather damage. Cracked or peeling paint can indicate neglect, which may lower your home’s value. Updating the exterior paint gives your home a new, polished look that appraisers notice.

Pro Tip: Use weather-resistant paint to ensure the exterior stays fresh longer, especially in Melbourne’s varied climate.

#4 Maintain HVAC Systems

An efficient heating and cooling system not only keeps your home comfortable but also improves energy efficiency. Regular maintenance of your HVAC system ensures that it runs smoothly, which can prevent costly repairs down the line. A well-maintained system can be a selling point for appraisers and lenders.

Pro Tip: Change your HVAC filters every 3 months and schedule annual professional servicing to maximise efficiency.

#5 Fix Plumbing Leaks

Leaks, whether from faucets or pipes, can cause extensive damage over time, including mould and weakened structures. By addressing plumbing issues early, you avoid the risk of water damage that can lower your home’s value. Keeping your plumbing in top shape shows that your home is well-maintained and free of major issues.

Pro Tip: Regularly check under sinks and around toilets for any signs of leaks or moisture buildup.

#6 Update Electrical Systems

Outdated or faulty electrical systems can be a safety hazard and a red flag during appraisals. Upgrading to modern wiring and fixing faulty outlets will not only increase safety but also add to your home’s value. Lenders prefer homes with up-to-date electrical systems as they reduce potential risks.

Pro Tip: Have a licensed electrician inspect your home’s wiring every 5 to 10 years, especially if you live in an older property.

#7 Window and Door Maintenance

Well-sealed windows and doors improve energy efficiency and enhance home security. Drafty windows or poorly fitted doors can lead to higher energy bills and discomfort, which may lower your property’s appeal. Replacing or repairing them helps boost your home’s value during appraisal.

Pro Tip: Install double-glazed windows for better insulation and soundproofing, which can be a big draw for buyers or appraisers.

#8 Pest Control

A pest-free home is crucial for maintaining its value. Infestations not only cause damage but also create health hazards, both of which can negatively impact appraisals. Regular pest control ensures that termites, rodents, and insects don’t compromise the structural integrity of your home.

Pro Tip: Schedule an annual pest inspection, especially for termites, which are common in Melbourne’s climate.

#9 Garden and Landscaping

A well-maintained garden boosts curb appeal, which is a major factor in appraisals. Simple tasks like mowing the lawn, trimming bushes, and planting low-maintenance greenery can make a big difference in how your home is perceived. An inviting landscape enhances the first impression for appraisers and potential buyers.

Pro Tip: Opt for drought-tolerant plants that require less water and maintenance, saving you time and money.

#10 Check Foundation and Structural Integrity

Cracks in the foundation or signs of structural weakness can severely affect your home’s value. Regularly inspecting the foundation for cracks or shifts can prevent small issues from becoming expensive repairs. A strong foundation reassures lenders that your property is structurally sound.

Pro Tip: Look for cracks in walls, uneven floors, or doors that won’t close properly, as these are signs of foundation issues.

#11 Bathroom and Kitchen Updates

These are the two most scrutinised areas during appraisals. Modernising your bathroom and kitchen with updated fixtures, tiles, and energy-efficient appliances can significantly boost your home’s value. Even small updates like new cabinet handles or a fresh coat of paint can make a difference.

Pro Tip: Focus on high-ROI upgrades, like energy-efficient appliances in the kitchen or water-saving fixtures in the bathroom.

#12 Document Your Maintenance

Keeping a record of all repairs, upgrades, and regular maintenance helps you present a clear case to appraisers and lenders. Documenting your home’s maintenance history can support a higher appraisal by demonstrating that your property is well looked after.

Pro Tip: Store receipts and reports in a digital format for easy access during refinancing negotiations.

Financial Considerations for Home Maintenance and Refinancing

When planning home maintenance to improve your chances of refinancing, it’s important to understand how different loan options impact your financial situation. 

For example, deciding between a fixed-rate loan and a variable rate loan will affect your monthly repayments. A fixed-rate loan offers predictable payments, while a variable rate loan could fluctuate with current interest rates set by the official cash rate, potentially leading to changes in your mortgage repayments. 

Homeowners should also evaluate their borrowing capacity, which is influenced by their credit score, outstanding loan balance, and overall financial commitments. A thorough understanding of these factors will help you determine if you can cover the potential costs of necessary home improvements without overextending your finances. 

FAQs

What are the most important renovations for refinancing?

Kitchen and bathroom upgrades tend to offer the highest returns, along with energy-efficient improvements like windows and HVAC systems.

Does energy efficiency really impact mortgage rates?

Yes, energy-efficient homes often appraise higher, giving you more leverage for better refinancing terms.

What outdoor features increase property value the most?

Decks, patios, and well-maintained landscaping are highly sought after by buyers and can significantly boost property value.

Are there specific Melbourne-related factors to consider when refinancing?

Yes, Melbourne’s housing market is competitive, and appraisers place extra emphasis on modern, well-maintained homes, especially in desirable suburbs.

How do I estimate the ROI of my home improvements?

Consult with local real estate agents or appraisers to get an accurate estimate based on current market trends.

Conclusion

Home maintenance is a smart investment, especially when it can lead to better mortgage refinancing options. From regular inspections to key upgrades like energy-efficient windows or modernising your bathroom, every bit of care you put into your property enhances its value and appeal to lenders. 

By making informed choices about your home’s upkeep, you position yourself for improved loan terms and a stronger financial future.

If you’re considering refinancing and want expert advice on how your home maintenance can boost your opportunities, chat with LM Connect today at LM Connect or call 0423 713 362. Our experienced mortgage brokers are here to help you explore the best refinancing strategies and make the most of your property investment.