Australian consumers are more likely to take out personal loans for home improvements than holidays, a survey has revealed.
New data from CUA found that more than one in 10 personal loans issued by the credit union during the 12 months to 30 June 2015 were for home improvements or household goods. Home renovators borrowed just over $15,000 on average, while personal loans taken out to purchase household goods averaged around $8,900.
By comparison, just over 5% of personal loans were for holidays, with customers borrowing an average $10,000. Weddings accounted for less than 1% of new personal loans issued by CUA during the past year, with soon-to-be-newlyweds borrowing an average of nearly $15,000 to help pay for the big day.
CUA head of customer insights, Chris Malcolm says the figures reinforce the findings of CUA’s recent National Mortgage Survey, which showed home owners are more likely to put extra cash towards paying off their home loan, than they are to splurge on luxuries and holidays.
“Customers see any money they put into their home – including renovations and home improvements – as being an investment in their future. 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,” he said.