Data from digital lender MONEYME reveals that residents in Craigieburn, Victoria, lead the country in small home renovation loans, with the average loan value around $22,400. New South Wales surpasses all states in both the total number of loans and the highest average loan value, standing at $22,640.
The Australian Bureau of Statistics supports these findings, noting that NSW also leads in renovation loan activity, with a significant increase in average loan amounts for more extensive projects, now averaging $225,664-a 9% jump over the past year.
This trend indicates that homeowners are leveraging personal loans as a flexible financing option to enhance their living spaces, potentially increasing property value and improving quality of life. However, it's crucial for borrowers to assess their financial situations carefully and ensure that loan repayments are manageable within their budgets.
Before undertaking a renovation project funded by a personal loan, consider obtaining multiple quotes from contractors, creating a detailed budget, and consulting with financial advisors to ensure that the investment aligns with your long-term financial goals.
