Refinancing home loans for renovations 'is an attractive option'

An unprecedented number of Australians are refinancing their home loans in order to renovate their existing property, an expert has stated.

Ron Hancock, chief executive of the Wide Bay Australia building society, told Your Money that his firm has seen a surge in the number of people considering this option.

His observations are in line with figures from the Australian Bureau of Statistics, which revealed that refinancing of home loans rose to $3.17 billion in April, up 22 per cent year-on-year.

"People are deciding to stick with what they've got and spend an extra $40,000 or $50,000 on doing up their house. We are seeing much more of this than ever," Mr Hancock asserted.

He noted that the rise in borrowing reflects the "sluggish" property market, which has led more people to stay in their homes and tailor them to their needs.

Earlier this week, the Housing We'd Choose report by the Grattan Institute revealed that Aussies are keener to purchase townhouses and apartments in the city than they are detached homes outside of urban areas.

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