Tuesday, February 28th, 2012
Home owners have been putting plans to renovate their properties on the backburner as they focus on saving or reducing debt, according to leading mortgage broker Loan Market.

Loan Market Corporate Spokesman Paul Smith said Australian Bureau of Statistics (ABS) data show while there was a rise in home loan customers refinancing in 2011, the value of refinancing deals for renovations fell seven per cent compared to 2010.

“We’re seeing many consumers saving money instead of borrowing to fix up their homes,” Mr Smith said.

Mr Smith said that consumer feedback this year has largely prioritised debt reduction in uncertain economic times.

“We also suspect many Australians would be carrying out their own home renovations to cut costs,” he said.

Mr Smith said while borrowing for renovations was in decline, ABS data found the value of the refinance market was up 20 per cent in 2011 compared to the previous year.

“The boost in refinancing highlights the competitive lending landscape out there with a wide variety of deals on offer,” he said.

“The most significant number of refinancing deals occurred in the second half of 2011 and we are expecting the trend to continue through this year.”

Mr Smith said the Reserve Bank of Australia (RBA) reductions in official interest rates in November and December last year had also helped stimulate refinancing activity.

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Loan Market

Loan Market is Australia’s fastest growing retail mortgage brokerage. With more than 600 mortgage brokers and staff across Australia and New Zealand we bring to you every major residential, commercial and business bank and lender in Australia.
Paul Smith
P: 0421923019
W: loanmarket.com.au/


Home Loans, First Home Buyers, How Much Can I Borrow, Mortgage Broker


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