Renovating is becoming less of a priority for home owners, as they seek instead to pay off their mortgage faster.
According to new research by the Australian Bureau of Statistics (ABS), while there was a rise in home loan customers refinancing in 2011, the value of refinancing deals for renovations fell seven per cent compared to 2010.
“We're seeing many consumers saving money instead of borrowing to fix up their homes,” Loan Market Group spokesperson Paul Smith said.
According to Mr Smith, 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 said.
Mr Smith said while borrowing for renovations was in decline, ABS data found the value of the refinance market was up 20 per cent in 2011 compared to the previous year.
“The boost in refinancing highlights the competitive lending landscape out there with a wide variety of deals on offer,” he said.
“The most significant number of refinancing deals occurred in the second half of 2011 and we are expecting the trend to continue through this year.”