Homeowners urged to pump tax refunds into mortgage

By |

Do you tend to see your annual tax refund as an opportunity to splurge some ‘free money’ on a few of life’s luxuries? With the world’s economic worries looming large, now may be the time to put any refund towards reducing your home loan.

"A tax refund is often seen as free money, which makes it very tempting to spend right away; however, it's important to remember that the refund you're getting back is your own money. Tax season is a good opportunity for people to plan ahead with an eye toward their future goals and financial health," advised Homeloans national marketing manager Will Keall.

The warning comes as Homeloans reveals the results of new research indicating that more than half of Aussies will use their tax refund to pay off debt rather than splashing out on consumer goods.

According to the survey, 52% of Australians expecting to receive a tax refund this year will use it to pay down debt, citing economic concerns and the rising cost of living as their motivation. Twenty-one per cent will save their refund. While one-quarter of those surveyed said they would spend their refund, only 10% said they would buy something for themselves.

The survey has also suggested that consumers remain cautious and wary of spending. Eight in 10 respondents to the poll said they were currently more cautious with money than they had been in previous years.

"Despite the relative strength of the Australian economy, international economic uncertainty coupled with the rising cost of living is having a major impact on our spending habits. Many of our survey respondents also had very real concerns about their job security, with redundancies already making an impact in certain employment sectors," said Keall, adding that many consumers felt it was "time to batten down the hatches" by reducing household or personal debt.

Are you battening down the hatches in preparation for tough times ahead? Have your say by commenting below, or joining the conversation on our property investment forum.

More stories:

Debt, employment worries hold back potential homebuyers

How to stay on a budget as a property investor

Danger: why the Euro-crisis could sink the Aussie property market

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Top Suburbs : rooty hill , glendenning , leumeah , kawana , bligh park

go back

Get help financing your investment



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here