Renovations rule, not holidays or weddings

Renovations rule, not holidays or weddings

Posted on Friday, August 14 2015 at 12:01 PM

Aussies are more likely to take out a loan for home improvements than they are to borrow money for an exotic overseas holiday or wedding, according to new data from customer-owned lender CUA.

More than one in 10 personal loans issued by CUA
during the 12 months to June 30, 2015, were for home improvements or household
goods, the company says. Home renovators borrowed a little more than $15,000 on
average, while personal loans taken out to purchase household goods averaged
around $8,900.

“Customers see any money they put into their home –
including renovations and home improvements – as being an investment in their
future,” CUA head of customer insights Chris Malcolm says.

“Improvements to the family home, like an extension
or a new entertaining area, can create extra space or comfort for the family to
enjoy today, as well as potentially adding value to what is, for most people,
their biggest asset.”

Comparatively, just over five per cent of personal
loans taken out by CUA customers were for holidays, with people borrowing an
average $10,000. Weddings accounted for less than one per cent of new personal
loans issued during the past year, with soon-to-be-newlyweds or their families
borrowing an average of nearly $15,000 to help pay for their big day.

Boats, caravans/campers, motorcycles and scooters
were also well down the list when it came to personal lending.

“The figures reinforce the findings of our recent
CUA National Mortgage Survey, which showed
homeowners are more likely to put extra cash towards paying off their home loan
than they are to splurge on luxuries and holidays,” Malcolm says.

Personal loans remained popular with customers
wanting to consolidate their personal finances or debts, while around one in
three CUA personal loans during the year were for new or second-hand cars. 


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