Aussies unlocking the equity in their homes
Australian homeowners are looking at ways to use the increase in the value of their residential properties to their advantage, according to NAB research.
It found that seven in 10 are using the equity in their home to renovate their home or invest in property.
In addition, 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 per cent), investing in shares (12 per cent) or adding it to their super (8 per cent) are other ways Australians are using their home equity to get ahead.
The latest NAB Housing Market Insights Report also shows that mortgage holders aged 18 to 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 and two in three Aussies aged 18 to 24 are paying down their loan compared to those between 25-44 who are more likely to renovate.
“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,” says NAB executive home ownership, Andy Kerr.
“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.”