A new survey has revealed many Australians are entering 2021 with optimism around their ability to achieve their financial goals, with nearly half (47%) fostering plans to consolidate or reduce their debt in the coming year.
According to the data from Lendi, 84% of those talked to communicated confidence that 2021 will be better than 2020.
“The events of 2020 saw many Australians forced to put life on hold, but 2021 looks like we’ll be seeing plans reignited with a greater sense of enthusiasm and perhaps even security,” said David Hyman, Lendi co-founder and CEO.
“Whether it’s taking holidays, renovating, moving or having kids - it seems Australians are keen to crack on with it and get things back on track during 2021.”
While 50% of those surveyed admitted they were forced to reset their financial goals during 2020, 48% feel more optimistic about hitting their financial goals in 2021; conversely, just 22% indicated they feel less optimistic about the new year.
Also in 2021, 42% of Aussies surveyed expect to save more money while 33% think they will be able to earn more money than they did in 2020.
“The great Australian property dream appears to have survived the pandemic and only 22% of people say their home ownership goals have become less ambitious in the current environment,” Hyman added.
"During December, we saw a 33% increase in the value of unconditional loan approvals processed at Lendi compared to December 2019.
“This buoyancy is in part due to low interest rates which, for those with a secure income, are making it a great time to buy rather than rent.”
Around two in three (61%) of those surveyed said COVID-19, the government stimulus and the broader economic environment have not impacted their property ownership goals, with the remaining 17% indicating they have actually become more ambitious over the last year.
Just 14% named mortgage repayments as their biggest financial concerns for 2021.
“Low interest rates have certainly helped ease the pressure for many Australian households and in 2021 we will see more Australians consolidating their debts to pay them off faster,” said Hyman.
"Refinance activity will continue to be strong but as Australians take their plans to renovate, move, buy or sell off the back burner, we should see a lot of fresh activity in the home loan market this year.”