Homeowners stay put as renovation activity heats up
07 Sep 2017
The number of Australians making renovations to their homes during the June quarter grew by 2.2 per cent according to the Housing Industry Association, while new dwelling construction declined.
Mozo’s home loan and property expert Steve Jovcevski said that the increase in renovation activity is a sign than many homeowners are turned off by high housing prices and stamp duty costs.
“It doesn’t surprise me that homeowners are opting to renovate rather than sell up,” he said. “When you consider that on a $750,000 home in NSW you could pay around $29,000 in stamp duty, it’s no wonder people prefer to funnel that money into renovations on their current home instead of the government’s coffers.”
And the good news for renovators is that home lenders this spring are keen to attract mortgage holders wanting to tap into the increased equity in their home to fund renovations.
Since June 1, 29 lenders have made cuts to both fixed and variable home loan rates for owner occupiers, with rates as low as 3.54% for refinancers with an LVR of 80%. Check out a range of top refinance home loans currently on the market below, or for ideas on renovation trends head over to our renovation guides hub.
Top 5 Refinance Home Loans
Rates updated daily. Advertiser disclosure.
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Mozo experts choice awards won:
- Offset Home Loan - 2021
- Low Cost Home Loan - 2021
1.85% p.a.variable for 24 months and then 2.25% p.a.
2.21% p.a.
$1234
Product details Close details
Mozo experts choice awards won:
- Offset Home Loan - 2021
- Low Cost Home Loan - 2021
Smart Booster Home Loan
2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
1.85% p.a.variable for 24 months and then 2.25% p.a.
2.21% p.a.
New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
Smart Booster Home Loan
New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
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$0.00
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$0.00
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yes - free
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yes - free
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Optional - with 0.10% additional interest
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$520
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1.85% p.a.variable for 24 months and then 2.25% p.a.
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2.21% p.a.
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$520
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80.00%
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$50,000
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$1,000,000
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Variable
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
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Read our Mozo Review to learn more about the Smart Booster Home Loan
Details Close
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Mozo experts choice awards won:
- Home Loan Innovation - 2021
- Investor Home Loan - 2021
- Low Cost Home Loan - 2021
1.99% p.a.
1.99% p.a.
$1234
Product details Close details Mozo experts choice awards won:
- Home Loan Innovation - 2021
- Investor Home Loan - 2021
- Low Cost Home Loan - 2021
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
1.99% p.a.
1.99% p.a.
Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.
Celebrate Variable Home Loan
Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.
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$0.00
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$0.00
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yes - free
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yes - free
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no
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$0
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1.99% p.a.
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1.99% p.a.
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$0
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60.00%
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$100,000
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$2,000,000
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Variable
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
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Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Details Close
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p.a.
2.19% p.a.
$1234
Product details Close detailsBasic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR<70%
p.a.
2.19% p.a.
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
Basic Home Loan
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
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$0.00
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$400.00
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yes - free
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yes - free
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no
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$0
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p.a.
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2.19% p.a.
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$0
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70.00%
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$150,000
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$750,000
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Fixed
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Principal & Interest
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Owner Occupier
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Monthly
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Read our Mozo Review to learn more about the Basic Home Loan
Details Close
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Mozo experts choice awards won:
- Low Cost Home Loan - 2021
1.99% p.a.
2.02% p.a.
$1234
Product details Close details Mozo experts choice awards won:
- Low Cost Home Loan - 2021
Variable Home Loan Special
Owner Occupier, Principal & Interest, LVR <70%
1.99% p.a.
2.02% p.a.
Special rate applies to home loan applications submitted by 31 October 2021. Unlimited additional repayments, free redraw, 100% offset account. 30% deposit required. Simple online application. Low Cost Home Loan winner in the Mozo Expert's Choice Awards for 2021.
Variable Home Loan Special
Special rate applies to home loan applications submitted by 31 October 2021. Unlimited additional repayments, free redraw, 100% offset account. 30% deposit required. Simple online application. Low Cost Home Loan winner in the Mozo Expert's Choice Awards for 2021.
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$0.00
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$500.00
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yes - free
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yes - free
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Optional - $10 per month
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$794
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1.99% p.a.
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2.02% p.a.
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$794
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70.00%
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$150,000
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$1,500,000
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Variable
-
Principal & Interest
-
Owner Occupier
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Weekly, Fortnightly, Monthly
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Special rate applies to home loan applications submitted by 31 October 2021.
Read our Mozo Review to learn more about the Variable Home Loan Special
Details Close
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Mozo experts choice awards won:
- Investor Fixed Home Loan - 2021
- Split Home Loan - 2021
p.a.
2.24% p.a.
$1234
Product details Close details Mozo experts choice awards won:
- Investor Fixed Home Loan - 2021
- Split Home Loan - 2021
UHomeLoan
Owner Occupier, Principal & Interest
p.a.
2.24% p.a.
$0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
UHomeLoan
$0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
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$0.00
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$0.00
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yes - free up to $20,000 during fixed rate term
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no
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no
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$0
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p.a.
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2.24% p.a.
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$0
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80.00%
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$100,000
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$2,000,000
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Fixed
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
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$395 Establishment fee waived for fixed rate loans that settle by 30 September 2022.
Read our Mozo Review to learn more about the UHomeLoan
Details Close
^See information about the Mozo Experts Choice Home loans Awards
Steps to refinance to fund a renovation
Step 1. Work out a renovation budget. Whether you get professional help from an architect, landscaper or builder to work out how much you’ll need to do the changes to your home that you want, or you just work backwards from a lump sum amount you think you can afford, having a budget in mind before you speak with your lender or do any of the work is super important.
Step 2. Compare home loan deals. Before you just get in contact with your existing home lender to discuss your renovation budget, it’s a good idea to compare rates from other lenders in the market. Not only will this help you when negotiating with your existing lender if you decided to refinance with them, it will also help you get up to speed on new features or options that may not have been available when you first took out your home loan. Mozo’s Switch & Save Calculator is a good place to start - it compares over 100 home loans in our database that are available now.
Step 3. Refinance. Once you’ve found a home loan that ticks the boxes for you, you can kick off your refinancing application. Be sure that you’ve also done your homework around any mortgage discharge costs or upfront costs that you might need to pay when switching home loans.
