You might want to go on a holiday, buy new furniture, pay for a course or medical expenses, or even plan your wedding.
A personal loan is a good way to get the extra funds you need. There are two types of personal loans – secured and unsecured.
Secured loans generally offer lower interest rates than unsecured loans, but you must put up something for collateral, like your house, your car or your boat. If you don't pay off the loan, you can lose that collateral, so make sure you know all the conditions before you choose a secured loan. Unsecured loans are commonly known as 'signature' loans – the lender will approve the funds with just your signature, but you might end up paying higher interest for the privilege.
One of the key questions you need to ask yourself before you take out a personal loan is whether you'll go secured or unsecured. Even though you could probably get more money and a lower interest rate with a secured loan, you need to weigh up the risk of having an asset as security. Your Loan Market mortgage broker will talk you through the options and, based on your financial situation and needs, recommend competitive loan options for you.
Your Loan Market mortgage broker can help you:
- Find out how much you can borrow
- Understand your repayments
- It's a good idea to talk to your mortgage broker about the options available to you – there might be more than you think.