The survey of 500 showed that increases in property values empowered homeowners to use strong appreciation in home prices over the past two years to their advantage.
About four in 10 homeowners are taking the opportunity to get ahead on their loan repayments by either making larger or more frequent repayments or contributing lump sum payments.
Additional data obtained from the report found mortgage holders aged 18-44 are more likely to get ahead on their loan repayments compared to those aged over 45 years.
Approximately three in 10 Aussies whose home needs a makeover are unlocking their equity to conduct renovations on their property.
Those aged between 25-44 are more likely to renovate their home compared to homeowners aged 18-24.
Whereas the age group most likely to invest their equity in superannuation are 45-54 year old's.
Some of the other ways NAB customers are using their equity include buying an investment property with 16%; investing in shares, 12%; and adding it to their super, 8%.
Andy Kerr, NAB Executive Home Ownership, said homeowners are trying to do everything they can to use 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.”
Invoice financing grows despite supply chain constraints
Recent NAB data also shows the number of customers using invoice financing has grown by 22% over the past year.
Invoice financing allows businesses to borrow against unpaid customer invoices.
Essentially, it helps them access cash quickly by unlocking funds with their unpaid invoices.
Thirty per cent of the users of the invoice financing service are the wholesale and retail industry who are currently combating supply chain constraints.
Michael Saadie, Executive Business Metro, said supply chain restrictions are one of the main issues businesses are having to deal with in the current market.
“NAB’s invoice financing team has been busier than ever helping small and medium enterprises keep stock moving so that they can get paid for their goods sooner,” Mr Saadie said.
“When I’m talking to customers, many continue to report cash flow as one of their key challenges, as well as ongoing concern around skills shortages.
“When businesses have the cash to pay their invoices quickly, they can get stock sooner and ensure other important payments are made promptly such as their team’s salaries. Ultimately, the quicker a business gets cash in the door, the faster suppliers get paid and the faster our economy moves.”
See Also: Six Home Renovation Tips That Could Boost Your Home's Value
Advertisement
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $2,408 | Principal & Interest | Variable | $0 | $530 | 70% | Featured Online ExclusiveUp To $4K Cashback |
| |||||||||
5.99% p.a. | 5.90% p.a. | $2,396 | Principal & Interest | Variable | $0 | $0 | 80% | Featured Apply In Minutes |
| |||||||||
6.14% p.a. | 6.16% p.a. | $2,434 | Principal & Interest | Variable | $0 | $250 | 60% | Featured Unlimited Redraws |
|
Image by Harrison Astbury
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
With bonus Q&A sheet and Crossword!
Brooke Cooper
Harry O'Sullivan
Alex Brewster
