Homeowners stay put as renovation activity heats up
Tom Watson | 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
- UBank
UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
3.59% p.a.
3.59% p.a.
A low rate Home Loan with no bank fees on variable rate loans. Easy & fast to apply. Choose between flexible repayments and make extra repayments for free on a variable rate home loan.
-
$0.00
-
$0.00
-
yes - free
-
yes
-
no
-
3.59% p.a.
-
3.59% p.a.
-
$0
-
80.00%
-
$200,000
-
$699,999
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Details Close
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- Newcastle Permanent
Discounted Variable Home Loan Premium Plus Package
Owner Occupier, Principal & Interest
3.72% p.a.
4.12% p.a.
Experts Choice - Australia's Best Customer-Owned Banking & Home Lender of the Year 2018.
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$395.00 yearly
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$0.00
-
yes - free
-
yes - free
-
yes
-
3.72% p.a.
-
4.12% p.a.
-
$0
-
90.00%
-
$150,000
-
-
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Details Close
-
- State Custodians
Low Rate Home Loan with Offset
LVR<80%, Owner Occupier, Principal & Interest
3.68% p.a.
3.69% p.a.
A Low Rate Home Loan with a $0 Application Fee, Free Redraws & Extra Repayments
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$0.00
-
$300.00
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yes - free
-
yes - free
-
yes
-
3.68% p.a.
-
3.69% p.a.
-
$0
-
80.00%
-
$100,000
-
$2,000,000
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Details Close
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- NAB
Base Variable Rate Home Loan
Owner Occupier, Principal & Interest
3.87% p.a.
3.91% p.a.
$1,250 BONUS WITH AN ELIGIBLE NAB HOME LOAN BANKING BUNDLE (T&Cs apply). Low ongoing rate. Free extra repayments and redraw facility. Only 5% deposit and no annual or monthly fees.
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$0.00
-
$350.00
-
yes - free
-
yes
-
no
-
3.87% p.a.
-
3.91% p.a.
-
$600
-
95.00%
-
$20,000
-
-
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
Details Close
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- Click Loans
The Online Home Loan
LVR<70%, Owner Occupier
3.70% p.a.
3.70% p.a.
An easy online application with upfront rates tailored to you & no ongoing fees
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$0.00
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$250.00
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yes - free up to $10,000 p.a.
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yes - free
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yes - optional, $198 annual fee
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3.70% p.a.
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3.70% p.a.
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$363
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70.00%
-
$150,000
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$2,000,000
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Variable
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Principal & Interest, Interest Only
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Owner Occupier
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Fortnightly, Monthly
Details Close
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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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