Self-funded renovations on the rise: Loan Market

More home owners are undertaking renovations from savings rather than borrowing the money to do so, according to mortgage broker Loan Market.

“We're seeing many consumers saving money instead of borrowing to fix up their homes,” says Loan Market spokesperson Paul Smith.

Smith says that consumer feedback this year has largely prioritised debt reduction in uncertain economic times.

“We also suspect many Australians would be carrying out their own home renovations to cut costs,” he says.

These findings are supported by end-of-year ABS housing finance figures, which revealed a 7% decline in the value of renovation refinancings compared with 2010 despite an overall rise in the number of home loan customers refinancing their mortgages.

Property investors or owner-occupiers who are considering renovating and adding value to their property should sign up for Property Observer’s free webinar: Renovating for Profit on Wednesday, February 29 at 12.30pm