NAB research today reveals seven in 10 Aussies are using the equity in their home to renovate their home or invest in property, while many have taken the opportunity to get ahead of their loan repayments.
According to the latest data, many homeowners who have seen an increase in the value of their home in recent years are looking at ways to use this to their advantage.
Over four in 10 are taking the opportunity to get ahead on their loan by either making larger or more frequent repayments on their loan or making a lump sum payment if available.
Around three in 10 Aussies whose home needs a facelift have put renovations on the agenda and are unlocking the useable equity and borrowing more to make the changes.
Buying an investment property (16%), investing in shares (12%) or adding it to their super (8%), are other ways Australians are using their home equity to get ahead.
The latest NAB Housing Market Insights Report also shows:
· Mortgage holders aged 18-44 are more likely to get ahead on their loan, compared with over 45s.
· Those aged 45-54 are more likely to invest in superannuation.
· Two in three Aussies aged 18-24 are paying down their loan compared to those between 25-44 who are more likely to renovate.
NAB Executive Home Ownership, Andy Kerr, said with many NAB customers ahead on their loans, it was interesting to see them using their equity to get further ahead.
“Customers are wanting more security and certainty, so it is not surprising in this environment of rate increases that we are seeing Aussies paying down their mortgages even further,” Mr Kerr said.
“We’re fielding more enquiries today about how to use equity than we’ve ever seen. And as hybrid working continues to evolve, many Aussies are taking the opportunity to build a new study or finally get that dream kitchen.”
The NAB survey was conducted with 500 Australian adults and weighted to the population from 26 April to 1 May 2022.