More Aussies are taking out personal loans, says ABS

By Sophie Wong · · 2 min read
Fact Checked
Man is working on some home renovations that are funded by a personal loan

New research from the Australian Bureau of Statistics (ABS) shows there’s been a steady increase in the number of new loan commitments.

The ABS tracks loans taken out for housing, business and personal financing.

Among these loans, the percentage of Aussies taking out a personal fixed term loan rose by 6.10% in August, after a rise of 6.0% in July. 

So it seems that many are keen on a personal loan to help pay for a range of expenses, which typically include upgrades around the home, such as a new fence, pool, patio or even a room extension.

If you’re considering a personal loan to make your reno dream come true, there are a few things to keep in mind:

  • The amount you can borrow will depend on some factors. For example, having a good credit score means that you’ll likely be able to take out more money. 
  • If you’re concerned about your credit history, there are ways to improve your credit score. 
  • Expect to pay interest on top of the original loan amount, which will vary between providers.
  • If you’re able to make extra repayments, you can potentially reduce the interest payable and pay your loan off quicker.
  • If you take out a fixed rate loan, your interest rate is locked in for the duration of the loan.
  • If you get a secured personal loan, the loan is guaranteed by another asset, which can be repossessed if you fail to make repayments.

If you don’t know whether the loan amount you’re thinking of borrowing will work with your budget, crunch the numbers using a loan repayments calculator to get an estimate of the total sum you’ll have to pay back. 

As a personal loan is a financial commitment, it’s worth reviewing all of your options so you can find the one that meets your needs.

Compare personal loan options

The search for a personal loan can be overwhelming with so many options in the market. So why not check out some of the best personal loans that our experts at Mozo have tracked this month, or start comparing some options below!