Frequently asked questions
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What interest rates do you offer on your personal loans?
Unlike home loans, the interest rates on personal loans are generally not “black and white”. The interest rate will depend on a number of factors such as whether security is offered, whether you own a property, how good is your credit history and how long have you been in your job. To obtain a rate quote please call us.
Why would I use a personal loan for home improvements? Shouldn’t I just borrow the money needed for the renovations using a home loan?
Normally it is advisable to use a home loan to fund home improvements. Obviously the interest rates are much lower on home loans when compared to personal loans. There are some situations where you may need to use a personal loan to conduct home improvements. These situations include:
- You have borrowed 80% of the property value and borrowing more would mean you would have to pay lenders mortgage insurance. Mortgage insurance could cost you thousands of dollars. It may cost you less in interest to instead use a personal loan over a 5 year term than it would cost in mortgage insurance plus the interest on that mortgage insurance over the 30 year home loan term.
- You have borrowed 100-105% of the purchase price with the help of a guarantor. In this instance you generally wouldn’t be able to increase your home loan so a personal loan would be required.
How quickly will the funds be available after my personal loan is approved?
Generally by the next day or no later than two workings days.
Is the interest rate fixed or variable?
Most personal loans have a fixed interest rate. This gives you certainty about what your ongoing repayment will be. There are a few lenders that offer variable rates but fixed rates are much more common and popular.
I have a default on my credit report. Can I get a personal loan?
Most lenders require a clean credit history. We do have options that will consider 1 small paid default with a telco or utility company. Unpaid defaults won’t be considered
Need help? Give us a call.
Why not give us a call, or send us an email and get a direct response from one of our finance experts. We’d be happy to give you a hand and help point you in the right direction.