FAQs

Achieving a lower interest rate through refinancing depends on the current rate market; the rate on the existing loan; current credit rating; and lender assessment of the application.

Interest rates offered on all loans, including when refinancing, are determined by the lender assessment of the application including the credit score.

No. New loans can be arranged with the same or a different lender.

Restructuring the repayment schedule can be an objective in seeking new loan arrangements.

Yes. It is possible to replace existing secured or unsecured personal finance with new arrangements.

The process of replacing an existing loan with a new one can be more involved than applying for an initial loan, depending on the specifics of the application. Seeking assistance from a broker can simplify the process.

Secured personal loans require collateral. Unsecured loans may be approved with or without collateral, subject to lender guidelines.

Individuals can contact their lender and request a payout figure to find out how much they will need for refinancing. This figure will be the balance of the capital, interest and any fees incurred.

Credit scores can be impacted where individuals apply to multiple lenders for quotes on the same loan. Where a broker handles the refinancing and covers off on multiple lenders, the credit score is not impacted.

Where the credit rating has improved since the current loan was arranged, there is potential for the individual to be offered a lower rate. Considerations include the lending market, amount borrowed and the current score.