Personal Loans can aid with the purchase of Cars, Holidays, Medical Costs, Renovations and more.

Usually, a personal loan is used only when there isn't sufficient equity for an Equity Release on an existing property or you are yet to purchase a property. 

There are a number of options that will allow you to access personal lending. 

This lending is more expensive than Home lending as personal loans are either unsecured or the assets they are secured against will depreciate (Car, computer). Personal Loans have high interest and shorter loan terms therefore higher repayments.

Pro's for Personal Lending

  • It will allow you to access funding you require with relative ease as long as your income permits. 
  • Funding is fast and can be executed in a number of days, some lenders will execute in 24 hours. Compared to an equity release on a home loan which can take 2 to 4 weeks or more. 

Con's for Personal Lending 

  • It will effect your ability for further lending to buy a home or Investment Property more then if you took an equity release from your existing property, as the interest rate is much higher and the loan term is shorter, this causes a high repayment and high monthly expense. 
  • The interest can be front loaded, therefore when you take out a loan of $40,000 for a new car, your actual loan balance will show the interest component already added.    For Example, your car may cost $40,000, however the balance on day one of the loan may be $47,000, this is the car value plus the interest for the life of the loan. If you need to refinance the loan later to increase your borrowing power on a home purchase, you will then pay interest twice, the initial $7,000 that has been front loaded plus the refinance rate when you move your loan to a new provider. When a car dealership offers you a lower purchase price for using their finance company, you may be best to do an equity release if you have the option. Click here for more details on equity release. 


  • Search for a low rate personal loan, where the interest is not front loaded. 
  • If you can access your home equity, it may be better to do so.