Renovate or invest? Home equity just got interesting

Share

Share

NAB research today reveals seven in 10 Aussies are using the equity in their home to renovate their home or invest in property, while many have taken the opportunity to get ahead of their loan repayments.

According to the latest data, many homeowners who have seen an increase in the value of their home in recent years are looking at ways to use this to their advantage.

Over four in 10 are taking the opportunity to get ahead on their loan by either making larger or more frequent repayments on their loan or making a lump sum payment if available.

Around three in 10 Aussies whose home needs a facelift have put renovations on the agenda and are unlocking the useable equity and borrowing more to make the changes.

Buying an investment property (16%), investing in shares (12%) or adding it to their super (8%), are other ways Australians are using their home equity to get ahead.

The latest NAB Housing Market Insights Report also shows:

·        Mortgage holders aged 18-44 are more likely to get ahead on their loan, compared with over 45s.

·        Those aged 45-54 are more likely to invest in superannuation.

·        Two in three Aussies aged 18-24 are paying down their loan compared to those between 25-44 who are more likely to renovate.

NAB Executive Home Ownership, Andy Kerr, said with many NAB customers ahead on their loans, it was interesting to see them using their equity to get further ahead.

“Customers are wanting more security and certainty, so it is not surprising in this environment of rate increases that we are seeing Aussies paying down their mortgages even further,” Mr Kerr said.

“We’re fielding more enquiries today about how to use equity than we’ve ever seen. And as hybrid working continues to evolve, many Aussies are taking the opportunity to build a new study or finally get that dream kitchen.”

The NAB survey was conducted with 500 Australian adults and weighted to the population from 26 April to 1 May 2022.

 

For further information:

NAB Media Line  

P: +61 (0) 3 7035 5015

Customers, banking & finance

SEE ALL TOPICS

Media Enquiries

For all media enquiries, please contact the NAB Media Line on 03 7035 5015

Related Articles

  • Business

New NAB Portal Pay to simplify and streamline property payments

NAB’s new payment platform will help reduce the complexities and administration burden traditionally associated with property sales and rental transactions.   

  • 20.09.2024
  • Time to read 3 min read
  • Property

How to grow your mortgage offset account into your savings secret weapon

The easiest way to grow your mortgage offset account is using three Cs, so you can turn it into your savings secret weapon.

  • 02.09.2024
  • Time to read 2 min read
  • Scams

“It was just too believable”

A seemingly innocent message allegedly from “Microsoft” telling NAB customer Philip Waller his computer had been hacked was the start of a sophisticated scam. While NAB was able to recover retiree Philip’s funds – approximately $10,000 – the 68-year-old is sharing his story during Scams Awareness Week to help educate others so they can protect themselves.

  • 26.08.2024
  • Time to read 5 min read

Quick links

Business Research and Insights

For more business news and analysis, visit NAB’s Business Research and Insights .

NAB Security Podcast

For more insights about cyber security and fraud, and practical tips on how to stay safe, listen in to NAB’s Security Podcast series.

NAB tech blog

For more insights about technology and the digital developments enabling change for customers, visit the NAB tech blog on Medium.