Home upgraders more likely to take a flatmate than give up date night to save: ING

Polly Fleeting

03 Apr 2019

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Upgrading to a new home can be a costly task but today’s savvy homebuyers have found some clever ways to save money without having to stinge out on socialising.

This is according to ING’s recent Upgraders Homeownership Survey Report, which found that homebuyers looking to upgrade would take in a flatmate, move back in with their parents or move to an entirely different state rather than sacrifice a candle lit dinner and a bottle of wine.

Like starting a new job or planning a wedding, moving house is a stressful job mentally, physically and financially - this survey revealed that 59% of respondents had or planned to use a stop-gap when upgrading to a new home.

“Probably the biggest difference between purchasing a first home and upgrading into the next one is that, in most instances you’re not just buying a home, you’re selling one too. Managing your finances between those events weighs on the mind of Australians,” ING’s head of retail banking, Melanie Evans said.

“The fact that Aussie upgraders are making temporary living arrangements between selling and purchasing suggest their actions are very considered and done to help ease the financial stress of upgrading.”

Almost a third of upgraders have or planned to rent in between selling and buying, while 24% said they’d move in with friends or family.

Flatmate or dinner date?  

ING’s research shows that over a third of people who upgraded their home last year took in a flatmate post move, and 32% of that portion were families.

According to the survey many received rent to ease the financial stress of their mortgage - with 82% of mortgage holders paying more than required each year and almost half expected to pay off their mortgage at least five years early.

RELATED: The best home loans in Australia for 2019

“Aussie home owners can find the burden of a new mortgage tough when they have upgraded to another home. Taking in a renter may be a great, cost-effective option if you have a spare room because it eases the pressure of paying back a home loan,” Mozo Director, Kirsty Lamount said.  

“It may not be forever, but having a stable flow of rent is a clever way to help you pay back your mortgage sooner and take the financial guilt off the small things in life, like going out for a nice dinner with your partner.”

Only a quarter of respondents in ING’s report indicated that they were willing to sacrifice on socialising activities, like date night, when saving to upgrade to a new home.

Buyers also opted for moving interstate to save on house prices, with 1 in 5 moving to areas like Melbourne, Byron Bay, Central Coast and Brisbane and over half considering relocation next year.

RELATED: ING latest lender hike variable home loan rates

If you’re looking to upgrade your home in 2019 then a great way to start comparing mortgage rates is by looking at the table below or checking out the recently released 2019 Mozo Expert Choice Home Loan Awards.

Compare home loans 2019

Rates updated daily. Advertiser disclosure.

  • loans.com.au

    2.48% p.a.

    2.50% p.a.

    $1234

    Product details Close details
    Smart Home Loan 80

    A low-rate home loan that could save you thousands, with no ongoing fees plus unlimited extra repayments and free redraws. Mozo Experts Choice Low Cost Home Loan 2020.^ You'll need to be borrowing $1 million or less and have at least a 20% deposit required.

    • 2.48% p.a.

    • 2.50% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • Optional - with 0.10% additional interest

    • 80.00%

    • $520

    • $50,000

    • $1,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Smart Home Loan 80

  • HSBC

    2.59% p.a.

    2.60% p.a.

    $1234

    Product details Close details
    Home Value Loan

    No ongoing fees. Free extra repayments and online redraw. Mozo Experts Choice Split Home Loan 2020^

    • 2.59% p.a.

    • 2.60% p.a.

    • $150

    • $0.00

    • $300.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $150

    • $50,000

    • $7,500,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

  • Athena

    2.34% p.a.

    2.34% p.a.

    $1234

    Product details Close details
    Celebrate Variable Home Loan

    Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^

    • 2.34% p.a.

    • 2.34% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 60.00%

    • $0

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Celebrate Variable Home Loan

  • UBank

    2.49% p.a.

    2.49% p.a.

    $1234

    Product details Close details
    UHomeLoan - Discount Offer

    Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.

    • 2.49% p.a.

    • 2.49% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $0

    • $100,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the UHomeLoan - Discount Offer

^See information about the Mozo Experts Choice Home loans Awards