When youre feeling a change is in order with your home, you have two choicessell up and move on, or make improvements to your existing home by way of a renovation project. If the thought of packing up and moving house fills you with fear, look into your renovation options and the various ways you can finance such projects.

Some banks and lenders have specialised home improvement loans, but others allow you to use your existing home loan to finance projects such as home renovations. One such home loan product is national banks FlexiPlus Mortgage Facility.

Borrowers eligible for the NAB FlexiPlus Mortgage Facility are entitled to a line of credit home loan, which means they can access their funds for renovations at any time.

So, how does the nab FlexiPlus Mortgage Facility work? Firstly, you have all of your income paid into an NAB transaction account. The FlexiPlus Mortgage Facility is an approved loan limit attached to this account, so you can borrow up to the approved credit limit at any time. While you have to make regular interest repayments, putting money towards the principal of your loan can happen at any time.

Approved borrowers are able to borrow up to 90% of their propertys value with the NAB FlexiPlus Mortgage Facility. This means you could use your NAB home loan to finance your home renovations, whether it involves updating your bathroom or adding an entire room to your home.

The danger of using a product such as NAB FlexiPlus Mortgage Facility is that it is easy to create a huge debt, especially as regular repayments towards the principal are not required. The key to avoiding a debt spiral is by being disciplined with the way you use your line of credit loan. You should only use the equity in your home towards projects that will increase your wealth over time. For example, adding a room to your home is generally likely to increase its value, whereas updating your bathroom with tiles and fittings in your favourite hot pink colour may not suit the taste of potential buyers of your home and thus make it harder to sell in the future.