The latest NAB Behavioural Special Insight Report shows renovation costs are rising, while increased supply is creating positive sentiment for buyers. 

According to data from 2,000 respondents, one in two Australians renovating their home believe it’s harder to complete in the past three months, with 60% signalling it had become more expensive.

NAB said 28% of Australians think now is a good time to get a mortgage and 13% of Australians intend to buy a home in the next 12 months, the same as the previous quarter.

NAB executive of home ownership Andy Kerr said house price growth could ease in 2022 as more supply hits the market.

"Australians remain positive about the property market, with a quarter saying now is a good time to buy a home," Mr Kerr said.

"This is in line with last quarter, a time when it became clear price growth was slowing.

"We currently expect more subdued property price growth in 2022, with gains of around 3% compared to 21% in 2021.

"However, the market remains competitive and for many Australians buying a home can be a daunting experience."

See Also: Could super be used as collateral to buy a house?

2021 set some buyers back 10 years

According to affordable housing body PowerHousing Australia, price increases from one year can conservatively set Australians with a budget back up to 10 years in loan repayments.

CEO of PowerHousing Australia Nicholas Proud said those who used 'The Bank of Mum and Dad' to get a foot on the property ladder could experience stress to meet repayments down the road when interest rates rise. 

"With the RBNZ signalling in the last week a 2.4% rise in cash rate by 2024, and Australia poised to follow, the payback period only gets longer," he said.

"Rents have never been so high and the Reserve Bank raising of interest rates across 2022 through to 2024 will only see a flow through to rents continuing to rise causing more pain for younger low-income renters.

“Whilst a paper gain may be there today, it has only pushed younger generations and low income earners further out of reach."

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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.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.06% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Image by Steven Su via Unsplash



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