What you need to know about Refurbishment Loans

At Onate, we’re always looking for ways to support our clients as they grow their property portfolios. In recent years, we’ve expanded our lending solutions to include loans secured against mixed-use and commercial properties.

We offer Refurbishment Loans – a tailored solution designed to help property investors fund not only the acquisition of a property but also the cost of light refurbishment works.

What is a refurbishment loan?

A refurbishment loan is a financing facility designed for property investors purchasing assets that require minor, non-structural upgrades.

Once a borrower identifies a property and agrees a detailed scope of works, Onate reviews the costings and proposed schedule. If approved, we provide an additional facility to fund those works alongside loan for the property acquisition.

How does it work?

The process is simple and flexible:

• The borrower secures approval for a refurbishment loan (e.g., €300,000).

• They instruct their contractor to begin the works.

• Once a portion of the works is completed, Onate verifies the progress.

• Funds are then released in stages, based on completed work.

For example, if €100,000 worth of work is completed after two months, that tranche is released. The remainder is drawn as the rest of the project progresses.

Key Benefits of Refurbishment Finance

1. Reduced Capital Requirement

Traditionally, borrowers had to fund refurbishment costs themselves. With Onate’s new facility, we can now lend up to 100% of the cost of works, reducing the need for upfront equity and freeing up your capital for other investments.

2. Staged Drawdowns

Borrowers only draw funds when needed. This minimises interest costs and protects against delays in project timelines, as funds are only accessed once verified.

3. Scale Your Portfolio

With less personal capital tied up in a single project, experienced investors can undertake multiple refurbishments simultaneously, accelerating their growth and speeding up delivery of much-needed properties to the Irish market.

4. Increased Property Value

Refurbishment finance enables investors to unlock hidden value. By improving the condition and appeal of a property, investors can achieve higher resale or rental values post-completion.

5. Enhances Return on Investment (ROI)

By combining leverage with refurbishment, investors can significantly boost their overall ROI on a project, especially in areas where value can be quickly added with minor upgrades.

6. Faster Access to Funds

Our streamlined approval and drawdown process means borrowers can move quickly, a critical advantage in competitive markets where speed is key to securing the right deal. 

At Onate, we’re committed to supporting the ambitions of property professionals across Ireland. Whether you're planning a light refurbishment or looking to scale your investment portfolio, our Refurbishment Finance product is designed to help you succeed.

Get in touch today to discuss how we can help bring your next project to life.