As specialists across the personal lending market, we provide services in personal loan restructuring through refinancing. Our brokers have the expertise and vast lender connections, to source competitive interest rates and negotiate the most workable solutions for our customers.
Refinancing can be needed for various reasons, such as consolidating personal loans, securing lower rates, or adjusting repayment schedules. It involves replacing an existing loan with a new one. While beneficial, it’s important to consider the costs and implications.
As experts, we manage the refinancing process for clients, sourcing the best and most flexible solutions from over 80 lenders. We find the lowest rates without affecting your credit score.
If you’re considering refinancing, speak with us first for professional guidance. We’ll explain the process, benefits, and potential downsides, and source the best available offer for you.
Personal loans can be refinanced - an existing Personal Loan can be replaced with a new Secured or Unsecured Personal Loan. The new loan encompasses the amount owing on the existing funding arrangement, including any interest, lender charges, and break fees incurred when finalising the loan early.
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There are a number of reasons why individuals may consider this process and objectives that may be targeted. One of the main ones is to achieve lower personal loan rates. Whether this can be achieved will depend on the current credit score compared with when the original loan was set up; the rate on the current loan; the amount to be funded; the current interest rate market; and possibly, the condition of the goods used as security or under finance.
Another reason can be that the individual’s credit score has improved since the current loan was arranged. Opening the door to potentially better rates and/or less restrictive financing conditions. Varying the repayment amounts and schedule can also be a popular reason to refinance.
Where the individual’s financial circumstances or earnings capacity has changed over the loan term, the objective may be to better align repayments with the current scenario. This may involve seeking lower monthly repayments to ease budget pressures, or higher monthly repayments to finalise the commitment at an earlier date.
Individuals may also consider an overall restructuring of their personal financial position and seek to consolidate personal loans. Reducing the number of individual debts may streamline repayments, ease budget pressures and provide an opportunity to improve credit score.
Where the collateral offered on the existing funding is no longer available or the preference is not to have the asset the subject of loan security, there may be a need to change the conditions of a loan. This may be achieved through refinancing.
Whatever the reason or objective, the new loan may be the same or a different type – secured or unsecured, and may be with the same or a different bank or lender. Our brokers will be sourcing the best offer from across our vast lender market.
While there can be benefits in refinancing personal loans, there are considerations, especially around the costs involved. Lenders apply fees when a loan is finalised prior to the end of fixed loan term. Variable interest rate loans may have no break fees. Fixed rate loans have minimal break fees. There will also be lender fees and charges to establish the new loan.
Individuals should weigh up any costs against any savings in total interest payable if a lower rate is achieved. Also, consider the non-financial benefits associated with achieving a more workable solution.
Another consideration is with the collateral used when refinancing a secured loan. The age and condition of the goods being financed will be assessed as used with any new offer made, even if acquired new originally. The lender valuation may not be acceptable security. Unsecured loans without security attract higher interest rates to secured loans.
When refinancing, it’s crucial to target better rates and workable repayments, ease loan commitment pressures, and leverage specialist personal loan restructuring services for optimal financial health.
To discuss your specific requirements, the potential benefits, and the costs, please have an initial conversation with one of our brokers.
Our guides offer quick comparisons and simple explainers to help you navigate through the refinancing process with confidence.
Depending on the specifics of individual loan arrangements and objectives, refinancing may be a complex process. Individuals can realise significant benefits by having the process handled by professionals – a highly experienced Jade Finance broker.
We have access to over 80 lenders to find the right lender and best offer, especially for those seeking lower personal loan rates. Rates and loan conditions vary across the lending market. When considering personal loan restructuring, it is smart to check out the market to find out which lender offers the best option, which suits the profile and requirements, and which offers the most competitive interest rate and agreeable conditions.
When an individual carries out this process, there is potential for negative impacts on their credit score. Applications are reported to Credit Reporting Agencies, and multiple applications can be seen as desperation by some lenders. When the process is carried out by a professional broker, there is no impact on the credit score.
Our personalised service and support and with our extensive lender connections and expertise, provide individuals with professionals to manage their refinancing. Where any offer sourced does not present a benefit and an improvement to the current position, we do not advise on proceeding. But all decisions are up to the individual.
For professional expertise, competitive rates and personalised support, contact us by phone or online to discuss your requirements.
When considering refinancing, the first step in obtaining an estimate for the refinanced loan is to know how much is required. The total amount outstanding on the existing funding, including any fees applied by the lender, needs to be ascertained to establish the amount for the refinanced loan. This is referred to as the pay-out figure. A call to the lender can obtain this information which we can handle on your behalf if desired.
Once that information is obtained, simply use our calculator to work up estimates and decide on terms. Request a quick quote for a repayment figure specific to your requirements.
Where refinancing is sought to ease debt or budget pressures, other options may also be considered.
Refinancing a single loan rather than consolidating all debts into one finance arrangement, may be preferable and achieve a more workable outcome. The total required for the complete consolidation may exceed the amount lenders are prepared to extend and may attract a higher rate.
Debt management plans can be considered but can come with downsides including potential downgrading of the credit score. Bankruptcy is an extreme option for individuals that find themselves unable to meet their financial commitments. This will stay on your credit score for a long time and seriously impact the ability to get approved for loans in the future.
Refinancing can provide a more attractive option, especially when professionally handled by our specialists. It allows the credit profile to be built by meeting scheduled repayments and can potentially be structured to suit the current budget. Refinancing, when handled by a broker, has no impact on your credit profile, which can occur when entering debt management plans and bankruptcy.
To discuss if personal loan refinance is the right way forward for you, contact one of our brokers for a confidential discussion.
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THE COMPARISON RATE IS CALCULATED ON A SECURED LOAN OF $30,000 FIXED FOR A TERM OF 5 YEARS, NEW GOODS, EFFECTIVE 15/11/2024 AND SUBJECT TO CHANGE. WARNING: THE COMPARISON RATE IS TRUE ONLY FOR THE EXAMPLES GIVEN AND MAY NOT INCLUDE ALL FEES AND CHARGES. DIFFERENT TERMS, FEES OR OTHER LOAN AMOUNTS MAY RESULT IN A DIFFERENT COMPARISON RATE.
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.
