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

  • Promoted

    UBank

    3.59% p.a.

    3.59% p.a.

    $1234

    Product details Close details
    UHomeLoan - Discount Offer

    Enjoy a low rate & no bank fees (on variable loans) from one of Australia's leading digital banks. Easy & fast to apply, you'll get free redraw with flexible repayments. Min. 20% deposit required. Winner of a Mozo Experts Choice Award 2019 in the Low Cost Home Loan category.

    • 3.59% p.a.

    • 3.59% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes

    • no

    • 80.00%

    • $200,000

    • $699,999

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

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

  • Promoted

    Hot Deal Brand New Offer

    loans.com.au

    3.28% p.a.

    3.30% p.a.

    $1234

    Product details Close details
    Smart Home Loan

    A low-rate home loan that could save you thousands. No application or ongoing fees. Unlimited additional repayments. Unlimited free redraws with no minimum redraw amount.

    • 3.28% p.a.

    • 3.30% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $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

  • Promoted

    HSBC

    3.47% p.a.

    3.48% p.a.

    $1234

    Product details Close details
    Discounted Home Value Loan

    Enjoy unlimited free extra repayments and no ongoing service fees when you apply by 31 July (t&cs apply). Get help with the application process with an HSBC relationship manager. Winner of a Mozo Experts Choice Award 2019 in the Low Cost Home Loan category.^

    • 3.47% p.a.

    • 3.48% p.a.

    • $150

    • $0.00

    • $300.00

    • yes - free

    • yes - free online

    • no

    • 90.00%

    • $50,000

    • $7,500,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Discounted Home Value Loan

  • Promoted

    Greater Bank

    3.57% p.a.

    3.59% p.a.

    $1234

    Product details Close details
    Discount Great Rate Home Loan

    A Great Rate Home Loan from Greater Bank is a low interest rate home loan that's easy to use. With no establishment fee, low interest and no monthly or annual fees, you could save thousands of dollars! You'll need 10% deposit to start. Mozo Experts Choice Awards - Home Lender Bank of the Year 2019.^

    • 3.57% p.a.

    • 3.59% p.a.

    • $180

    • $0.00

    • $300.00

    • yes - free

    • yes

    • no

    • 90.00%

    • $150,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Discount Great Rate Home Loan

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

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