Market-savvy Aussies are now using personal loans to buy blocks of land

By Ceyda Erem · · 3 min read
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In a fight to secure themselves a place to call their own, Aussie buyers are now starting from scratch by buying blocks of vacant land with the help of personal loans.

According to recent data from the Australian Bureau Of Statistics, despite the 5.3% decline with all lending during September, personal loans are now at a record five month high, with nearly $8 million worth of personal loans accounting for the purchase of blocks of land.  

“It appears the government is making more land available, particularly in south-west Sydney and north-west Sydney – particularly with all the infrastructure corridors going in,” CommSec senior economist Ryan Felsman told Domain .

RELATED: Australia’s best personal loans of 2017

Housing Industry Association senior economist, Geordan Murray has revealed one of the big reasons Aussies are turning to personal loans to fund their housing dreams is due to the fact that current housing options do not meet the satisfaction of buyers, bringing on a highly competitive market.

“There is a bit of a mismatch between what households are wanting at the moment, and the new housing that’s being supplied. As soon as land becomes available it is being snapped up very quickly by households,” he explained.

Renovations also contributed to the growth in personal loans as Aussies are now choosing to work with what they’ve got to get the home they really want.

“A lot of people are looking at those costs and saying ‘instead of paying all that in tax and transaction costs, if I put that money into a renovation I could get that improvement in my house that I’m looking for’”, said Murray.

If you’re after a personal loan to build or re-create your dream home, our personal loan comparison tool compares over 100 loans from 43 lenders, but if you’re in a hurry, have a quick skim of a few down below.

Build your dream home with a personal loan

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 234 personal loans.
Last updated 24 November 2024 Important disclosures and comparison rate warning*
  • Low Rate Personal Loan

    Excellent Credit, $5,000 - $75,000

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 8.39% p.a.
    7.19% p.a.to 8.75% p.a.based on $30,000
    over 5 years

    Competitive low rates for borrowers with excellent credit on 1-7 year loans from $5,000 up to $75,000, plus free extra repayments. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

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  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.75% p.a.to 26.95% p.a.
    6.75% p.a.to 26.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023 & 2024^'

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.

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  • Debt Consolidation Loan

    $5,000-$75,000

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 19.39% p.a.based on $30,000
    over 5 years

    Competitive fixed rates on loans up to $75,000 depending on your credit score. Zero monthly account keeping fees, no exit fees and no early repayment fees. Make weekly, fortnightly or monthly repayments, over 1 to 7 years managed entirely online, at any time. Fast and easy, 100% online application.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

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    Details
  • Unsecured Personal Loan

    interest rate
    comparison rate
    Monthly repayment
    6.56% p.a.to 21.99% p.a.
    6.56% p.a.to 22.79% p.a.based on $30,000
    over 5 years

    Competitive fixed rates for borrowers on 1-7 year loans from $5,000 up to $50,000. $0 monthly fees and no early repayment fees to pay. Fast application process on the Revolut app. According to Revolut and subject to loan approval, you'll receive your money into your Revolut account straight away.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.56% would cost $35,768.68 including fees.

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  • Express Personal Loan

    Secured

    interest rate
    comparison rate
    Monthly repayment
    16.95% p.a.to 29.95% p.a.
    32.99% p.a.to 45.5% p.a.based on $10,000
    over 3 years

    Access fast finance on loans from $3,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 25-36 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.

    Repayment terms from 2 years to 3 years. Representative example: a 3 year $10,000 loan at 16.95% would cost $14,952.03 including fees.

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What to look for in a personal loan 

Fees - When seeking out a personal loan, you’ll need to watch out for fees, like early exit penalties and set up fees. These are avoidable so take the time to shop around and compare your options.

Extra repayments facility - It’s a good idea to make sure you’re able to make extra repayments throughout the course of your loan, as you never know when you could suddenly be a little richer.

Redraw facility - This is another feature to watch out for. A redraw facility allows you to withdraw repayments you’ve made, which can come in handy during emergencies, such as injury.

Borrowing capacity - Typically, the minimum amount you can borrow is $2000 with the maximum depending on what you are able to afford. If you’d like to know how much you can borrow, try out personal loan repayments calculator.  

If you're looking to buy land in NSW or Victoria perhaps you should check out Sydney personal loans and Melbourne personal loans respectively.

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

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