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
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Promoted
UBank
2.59% p.a.Apply now to get this rate from 3 Apr
2.59% p.a.Apply now to get this rate from 3 Apr
$1234
Product details Close detailsUBank UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
2.59% p.a.Apply now to get this rate from 3 Apr
2.59% p.a.Apply now to get this rate from 3 Apr
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.
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.
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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
-
2.59% p.a.Apply now to get this rate from 3 Apr
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2.59% p.a.Apply now to get this rate from 3 Apr
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$0
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80.00%
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$200,000
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-
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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 UHomeLoan - Discount Offer
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Promoted
loans.com.au 2.63% p.a.
2.65% p.a.
$1234
Product details Close detailsloans.com.au Smart Home Loan 80
Owner Occupier, Principal & Interest
2.63% p.a.
2.65% p.a.
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.^ 20% deposit required. Limited time only.
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.^ 20% deposit required. Limited time only.
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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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$520
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2.63% p.a.
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2.65% 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 Home Loan 80
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Promoted
HSBC 2.65% p.a.
2.66% p.a.
$1234
Product details Close detailsHSBC Discounted Home Value Loan
Owner Occupier, Principal & Interest
2.65% p.a.
2.66% p.a.
No ongoing fees. Free extra repayments and online redraw. Mozo Experts Choice Split Home Loan 2020^
Discounted Home Value Loan
No ongoing fees. Free extra repayments and online redraw. Mozo Experts Choice Split Home Loan 2020^
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$0.00
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$300.00
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yes - free
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yes - free online
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no
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$150
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2.65% p.a.
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2.66% p.a.
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$150
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80.00%
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$50,000
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$7,500,000
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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 Discounted Home Value Loan
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Featured Product
ME2.79% p.a.
3.23% p.a.
$1234
Product details Close detailsMEFlexible Home Loan Member Package
Owner Occupier, LVR<80%, Principal & Interest
2.79% p.a.
3.23% p.a.
Pay your variable rate loan off as early as you want. No valuation fee, no top up fee, no fee to fix your rate after you settle and no fee to split your loan after you settle. Reduce your interest with a 100% offset account.
Flexible Home Loan Member Package
Pay your variable rate loan off as early as you want. No valuation fee, no top up fee, no fee to fix your rate after you settle and no fee to split your loan after you settle. Reduce your interest with a 100% offset account.
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$395.00 yearly
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$350.00
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yes - free
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yes - free
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yes
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$200
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2.79% p.a.
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3.23% p.a.
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$200
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80.00%
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$700,000
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-
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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 Flexible Home Loan
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Promoted
Newcastle Permanent2.94% p.a.
2.98% p.a.
$1234
Product details Close detailsNewcastle PermanentSpecial Real Deal Home Loan
Owner Occupier, Principal & Interest
2.94% p.a.
2.98% p.a.
No ongoing fees. Ability to split your loan between fixed and variable. Winner of Mozo Experts Choice Award 2019 for First Home Buyer Loan & Investor Home Loan.
Special Real Deal Home Loan
No ongoing fees. Ability to split your loan between fixed and variable. Winner of Mozo Experts Choice Award 2019 for First Home Buyer Loan & Investor Home Loan.
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$0.00
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$0.00
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yes - free
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yes - fees apply
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yes - partial only
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$0
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2.94% p.a.
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2.98% p.a.
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$0
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90.00%
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$150,000
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-
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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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First Home Buyers can receive $2,500 for applications for loan amounts of $250,000 or more received before 30 April 2020 and settled by 30 June 2020 with a Newcastle Permanent Everyday Account.
Read our Mozo Review to learn more about the Special Real Deal Home Loan
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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.
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