More mortgage holders are refinancing to renovate their properties, a leading mortgage broker says.

Loan Market Group Executive Director John Kolenda said mortgage holders out to make home improvements were borrowing between $20,000 and $100,000 for renovations.

“We are getting a significant increase, as much as 50 per cent in some areas, in the number of people seeking to refinance to do minor home improvements”, Mr Kolenda said.

“It’s the major trend we have noticed in recent months as activity in the residential property market has slowed slightly during the winter.”

 ”I also believe it is a good time for existing home owners to upgrade now as the buyer can secure that next big financial commitment and, if they choose, lock in a reasonable fixed interest rate.”

One of the major decisions in refinancing is the cost, mortgage holders are advised to prepare for the costs of refinancing.

Costs of refinancing can include fees to exit your current loan and set up a new one, which depending on the circumstances surrounding your change, can range from minimal to thousands of dollars.

An experienced mortgage broker is best placed to assess a homeowner’s refinancing options and weigh the costs of refinancing against any potential benefits