Live the life you want without breaking the bank | Homeloan | InfoChoice
talk_to_a_broker
Subscribe to InfoChoice to receive


Special offers
Exclusive offers
Market data, trends and insights



Subscribe
Live the life you want without breaking the bank

Live the life you want without breaking the bank

Taking out a personal loan can put you in the fast lane to achieving your financial and lifestyle goals.

Whether you want to purchase a new car, fund a holiday, pay for a wedding, renovate your home, consolidate your debts or cover a financial emergency, a personal loan can provide the funds you need to take the next step in your life.

What are the different types of personal loans?

The first step is finding the right personal loan for you. That means understanding which different types are available.

· Unsecured personal loans dont require you to provide an asset as security for the loan. These can be an excellent option if youre just starting out and dont yet own a home or car, but they often attract a higher interest rate.

· Secured personal loans do require you to put up an asset to secure the loan. These can be a good choice if you own your home, for example, and often offer a lower interest rate than unsecured personal loans.

· Car loans may be offered to you by your car dealer known as dealer finance but you can often find a better car loan deal from an independent lender. Just ensure that youre aware of any lump sum payments that may be required at the end of the loan term.

· Overdraft loans are usually a short-term solution for covering small unexpected expenses such as emergency home repairs. In addition to interest repayments, take note of any establishment and ongoing service fees charged by the lender.

· Debt consolidation loans may be an easy way to pay off your existing debt at a reduced interest rate. For example, you may be paying off existing debt to your credit card provider at an 18% interest rate. A debt consolidation loan allows you to clear that debt and pay a lower interest rate.

How can you find a personal loan that suits your goals?

If you have your sights set on something that comes with a price tag, supplementing your savings with a personal loan might help you reach that goal faster. Let's say you're saving for a wedding. The average Australian wedding costs more than $36,000, with 60% of people using a loan to help fund their big day.

You calculate that the total cost of your wedding will be $29,000. Between your savings and the contributions from your parents, youve pooled together $25,000. A personal loan might help cover the remaining $4,000.

What should you consider before applying for a personal loan?

The larger the personal loan, the higher your monthly repayments will be. Ensure that you can afford to make the repayments, and factor into your budget any establishment and ongoing service fees. Youll also need to consider the term of the loan usually one to five years and whether you expect your financial situation to change during that period.

How do you apply for a personal loan?

In most cases, youll need to provide pay slips, bank account statements and copies of bills to prove to your lender that you can afford to make the repayments. If youre applying for a secured loan, you may also need to provide proof of ownership of your asset.

Put yourself on the fast track to achieving your financial and lifestyle goals by shopping around for the right loan.

Compare personal loans to help you find the right personal loan for you.



Previous Article  Next Article




Today's Home Loan Rates

Institution Product
Title
Standard
Rate^ (%)
Comparison
Rate* (%)
Details
Essentials Home Loan 60 3.49 3.51 Go to site
Advantage Home Loan 70 (No Offset) 3.64 3.66 Go to site
Home Value Loan - Owner Occupied 3.65 3.66 Go to site
Orange Advantage ($500k+ where LVR <=80% O/Occ) - Principal & Interest 3.74 4.06 Go to site
UHomeLoan SVR Value Offer (P&I) 3.74 3.74 Go to site
Institution Product
Title
Standard
Rate^ (%)
Comparison
Rate* (%)
Details

^Standard rate for a $250,000 standard loan. The 3 year table shows loans that are fixed for 3 years.
*Comparison rates shown are based on a home loan of $150,000 for 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
For information on how we’ve selected these “Sponsored” and “Featured” products click here.



Advertisement

Find out more



Twitter Facebook

© InfoChoice Pty Ltd ABN 93 061 105 735 AFSL and Australian Credit Licence number 349445

Although we cover a range of products, providers and services we don't cover every product, provider or service available in the market. The information and products contained on this website do not constitute recommendations or suggestions to purchase or apply for any particular product. Products included on this site may not suit your personal objectives, financial situation or needs. Please consider whether it is appropriate for your circumstances, before making a decision to purchase or apply for any product. If you are considering acquiring any financial product you should obtain and read the relevant Product Disclosure Statement or other offer document prior to making an investment decision.

Go to top