Aussie renovations market in for a slow recovery
The Housing Industry Association’s Spring edition of Renovation Roundup has today predicted a slow recovery in the renovations market after a recent slump.
Providing coverage across all eight states and territories, Renovation Roundup is a comprehensive review of Australia’s renovation market, based on data from almost 600 survey participants. After a slump in the period between 2011-2014, the market has been recovering at a slow pace, due mostly, said HIA senior economist Shane Garrett, “to patchy consumer sentiment and challenging labour market conditions in several states.”
There are certain geographic exceptions to the rule however, with the renovations market in NSW picking up dramatically. Sydney home-owners in particular are now finding it more affordable to undergo major renovations, rather than buy new homes.
RELATED: The best way to fund your home renovation
Renovations are big business in Australia, and the HIA estimated the industry will be worth “just under $30 billion this year”, although compared to a 2011 high of just over $33 billion, it’s clear the market’s recovery is slow-going.
The Roundup projected a 3.9% increase in renovation activity this year, bumping up by another 0.4% in 2016. Garrett said that “spurred on by very favourable interest rate settings as well as improvements in economic growth and the labour market over the medium term”, the market will continue to improve, with an increase of 0.6% in 2017 and finally, 3.0% the year after. This brings the total worth of renovation activity into the realm of $30.62 billion by 2018.
If you’re looking to get on the once more rising trend of home renovation, one of the options to pay for it is a personal loan. Here are some tips for scoring yourself a competitive deal and getting that new kitchen you’ve been dreaming about:
1. Put up an asset as security
If you have property, a car, or expensive household items, you may have an asset that can be put up as collateral on a personal loan for a better deal. But keep in mind, this means that if you forfeit on the secured personal loan, the lender may seize your chosen collateral in order to recover their loss.
Take for example, the 8.49% interest rate on secured loans, as is being offered by one of the big four at the time of writing, and compare it to their much higher 13.90% rate on unsecured loans. If this doesn’t seem like such a big deal consider this scenario: on a $20,000 loan over a period of four years, this lower rate would save you $2,527 in interest.
2. Consider a challenger brand
Banks incur huge costs through things like branch upkeep, staff wages and shareholder dividends. These days there are many online only or peer-to-peer providers who are able to cut down on these costs to offer competitive personal loans to Australian consumers.
If you’re okay with managing your personal loan online, then consider challenger brands who are often offering cheaper personal loan deals than the big banks.
3. Bring across other products
Another way to bring the cost of a personal loan down is by bringing some of your other banking products into the deal, for example your credit card, savings account or bank account, particularly if you are more comfortable staying with the bigger banks. This is called bundling, and you may find that with this method, the lender will agree to forgo the personal loan application fee, or give you a more competitive interest rate.
Want to find the perfect personal loan for you? Compare deals in our personal loan comparison hub here.
Personal loan comparisons on Mozo - rates updated daily
- Hot DealNo Fee Personal Loan for loans up to $50,000!
No Fee Unsecured Personal Loan
Fixed
interest rate
comparison rate
Monthly repayment
5.95% p.a.to 17.95% p.a.5.95% p.a.to 17.95% p.a.based on $30,000
over 5 yearsPay ZERO fees on loans up to $50,000 with NOW Finance. With no establishment fee, ongoing fees or early payout fee. What’s more, get your guaranteed, tailored interest rate in two minutes with no impact on your credit score! Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award.
No Fee Unsecured Personal Loan
Pay ZERO fees on loans up to $50,000 with NOW Finance. With no establishment fee, ongoing fees or early payout fee. What’s more, get your guaranteed, tailored interest rate in two minutes with no impact on your credit score! Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award.
- interest rate
- 5.95% p.a.to 17.95% p.a.
- comparison rate
- 5.95% p.a.to 17.95% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Weekly, Fortnightly
- Early repayment penalty
- 0
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 2 Years
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Rates based on borrower with excellent credit score. Maximum 3 year term for loan amounts $8,000 or less.
Read our Mozo Review to learn more about the NOW Finance No Fee Unsecured Personal Loan
Low Rate Personal Loan (Fixed, Unsecured)
Excellent Credit
interest rate
comparison rate
Monthly repayment
6.75% p.a.to 8.48% p.a.6.96% p.a.to 8.69% p.a.based on $30,000
over 5 yearsOurMoneyMarket offer competitive low rates on loans up to $50,000, plus free extra repayments and fee-free redraw facility. Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award.
Low Rate Personal Loan
OurMoneyMarket offer competitive low rates on loans up to $50,000, plus free extra repayments and fee-free redraw facility. Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award.
- interest rate
- 6.75% p.a.to 8.48% p.a.
- comparison rate
- 6.96% p.a.to 8.69% p.a.based on $30,000
over 5 years
- Upfront fee
- $150
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $2,001.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Rate for Excellent Credit
Read our Mozo Review to learn more about the OurMoneyMarket Low Rate Personal Loan
Personal Loan
Unsecured, Fixed, Excellent Credit
interest rate
comparison rate
Monthly repayment
6.39% p.a.to 8.69% p.a.6.39% p.a.to 9.61% p.a.based on $30,000
over 5 yearsWith low rates for borrowers with excellent credit, a quick 1 minute rate estimate and simple online application, there’s a lot to love about this loan! You’ll not only benefit from no exit fees, there are also no early repayment fees. To qualify, simply earn above $25,000 and you’ll be on the way to start spending.
Personal Loan
With low rates for borrowers with excellent credit, a quick 1 minute rate estimate and simple online application, there’s a lot to love about this loan! You’ll not only benefit from no exit fees, there are also no early repayment fees. To qualify, simply earn above $25,000 and you’ll be on the way to start spending.
- interest rate
- 6.39% p.a.to 8.69% p.a.
- comparison rate
- 6.39% p.a.to 9.61% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Late payment fee
- $30.00
- Repayment options
- Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $2,001.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 5 Years
- Security required
- Unsecured
- Other benefits
- Up front fee may be higher than shown depending on your application. Application fee is $149 for a three year term.
- Other restrictions
- Displayed interest rate is for customers with an excellent credit history. Application fees may be higher depending on loan amount.
Read our Mozo Review to learn more about the Plenti Personal Loan
Personal Loan
Fixed, Secured
interest rate
comparison rate
Monthly repayment
5.99% p.a.to 21.99% p.a.7.26% p.a.to 23.15% p.a.based on $30,000
over 5 yearsOffering loans from $3,000 at a fixed rate for the life of the loan. You can check your personal loan interest rate before applying in 3 minutes with no impact to your credit score. Repayments can be made weekly, fortnightly or monthly and extra repayments are accepted.
Personal Loan
Offering loans from $3,000 at a fixed rate for the life of the loan. You can check your personal loan interest rate before applying in 3 minutes with no impact to your credit score. Repayments can be made weekly, fortnightly or monthly and extra repayments are accepted.
- interest rate
- 5.99% p.a.to 21.99% p.a.
- comparison rate
- 7.26% p.a.to 23.15% p.a.based on $30,000
over 5 years
- Upfront fee
- $250
- Monthly fee
- $13.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $300 in first half of loan, $0 in second half.
- Minimum loan amount
- $3,000.00
- Maximum loan amount
- -
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Various
- Other benefits
- -
- Other restrictions
- To receive minimum rate applicants must be a new Personal Loan customer. Application fee is $140 for loans under $5,000.
Read our Mozo Review to learn more about the Latitude Personal Loan
Personal Loan
Variable, Unsecured
interest rate
comparison rate
Monthly repayment
5.75% p.a.to 25.99% p.a.6.47% p.a.to 29.2% p.a.based on $30,000
over 5 yearsGet a personalised rate quote in just 2 minutes, apply in just 7 minutes. Money transferred to your account the next business day. No exit or early repayment fees. Borrow up to $50,000.
Personal Loan
Get a personalised rate quote in just 2 minutes, apply in just 7 minutes. Money transferred to your account the next business day. No exit or early repayment fees. Borrow up to $50,000.
- interest rate
- 5.75% p.a.to 25.99% p.a.
- comparison rate
- 6.47% p.a.to 29.2% p.a.based on $30,000
over 5 years
- Upfront fee
- $0
- Monthly fee
- $10.00
- Exit fee
- $0.00
- Late payment fee
- $35.00
- Repayment options
- Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $50,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Unsecured
- Other benefits
- -
- Other restrictions
- Loan application fee ranges between 0% and 5% for loans with interest rates above 5.75% p.a.
Read our Mozo Review to learn more about the Symple Loans Personal Loan
^See information about the Mozo Experts Choice Personal Loans Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.