Around three in ten Aussies have put renovations on the agenda and are directing home equity towards improvements.
  • Over four in ten are taking the opportunity to get ahead on paying their home loan
  • Around three in ten are opting to renovate by tapping into their equity
  • Others are directing their equity towards property investment, investing in shares or their super.

According to the NAB Housing Market Insights Report many Aussie homeowners who have seen an increase in the value of their homes in recent years are looking at ways to use this to their advantage.

A survey conducted in April and May found that four in ten respondents are looking to get ahead on their loans. This equates to 1.16 million households since 2.9 million households have a mortgage in Australia according to the ABS.

They are doing this by either making more substantial payments or more frequent repayments on their loan. Some are opting for making lump-sum payments if available.

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.”

Andy Kerr, NAB Executive Home Ownership

The report also found that mortgage holders aged 18-44 are more likely to get ahead on their loans, compared with their over 45 counterparts.

Breaking this down further two in three Aussies aged 18-24 are paying down their loan. Mortgage holders between 25-44 are rather more likely to renovate.

Unlocking equity for renovations

The NAB research found that many Aussie homeowners are willing to tap into their home equity for home improvements.

Around three in ten respondents have put renovations on the agenda and are unlocking the useable equity and even borrowing more to make improvements.

“We’re fielding more enquiries today about how to use equity than we’ve ever seen,” Mr Kerr said.

He added that he sees the renovation trends continuing as flexible working norms change.

“And as hybrid working continues to evolve, many Aussies are taking the opportunity to build a new study or finally get that dream kitchen,” Mr Kerr said.

Homeowners are finding different ways to make the most of their equity. Some are buying an investment property (16%) or investing in shares (12%) while others are adding it to their super (8%). Those aged 45-54 are more likely to invest in superannuation.

With interest rates on the up and the boom in home values easing these trends may begin to ease.


The NAB survey was conducted with 500 Australian adults and weighted to the population from 26 April to 1 May 2022.

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