Mozo guides

Ultimate guide to wedding loans


Ding-dong, wedding bells are ringing! If you’ve just started the planning your big day, then you’ve probably got a fair idea of how much it’s going to cost... a lot. 

But not everyone has a spare $50k lying around, so you might consider taking out a personal loan to cover the cost. Splitting things 50/50 with your fiancé? Taking out a loan for two would be much easier to repay than taking one out on your own, especially if you’re just starting out.

Wedding loan pros & cons

“What’s that? You’re having a wedding? Excuse me while I hike the price up an extra 30%.” As you start booking things for your big day, you’ll soon see that an extra zero (or two) gets added to the bill the moment you mention the ‘W’ word.

From the venue and DJ hire to the photographer and cake-makers, everyone seems to want a cut from your big day. That’s just the reality of having a wedding. It’s the biggest (and most expensive) day of your life that'll go by in the blink of an eye. So you'll want to get the most bang for your buck!

A great place to start is by looking for the best wedding loan features you can find. Keep your eyes peeled. No point in being all loved-up and starry-eyed when signing a document that seals a small fortune away. So stay alert and check out these wedding loan pros and cons:

Wedding loan pros:

Much like a personal loan, rates are competitive between lenders and you’ll have the option to secure a fixed or variable rate. So take into consideration how long you can make repayments for and if you’ll need a strict budget to deal with your daily expenses.

Remember, the shorter the loan the less you’ll pay in the long run. So if you can afford to pay more for each instalment, then you’ll be on your second honeymoon in no time. Check out Mozo’s personal loans repayment calculator to see. You might even surprise yourself.

Wedding loan cons:

Don’t trip over the long list at your feet there. The biggest challenge is overcoming the price hike after mentioning that you’re planning a wedding. And that may go for loan rates too, so watch out! Always look for a second opinion, in fact, get 3 or 4 quotes for everything.

You want value for money, weddings aren’t cheap. Even small receptions add up in no time. There are so many hidden extras to entice you for the ‘bigger and better’ wedding and since you’re all loved-up and over the moon, you may be vulnerable to buying-in on them. So having more cash up your sleeve could be ideal if you want to flaunt it all. After all, it’s your big day! Go out with a bang.

Remember, your credit score will play a part in what kind of interest rate you secure, or whether you qualify for a loan at all. So be sure to plan out your application if you intend on borrowing a handsome sum. You’ll appreciate the spending freedom as opposed to scrimping on the event of your lifetime.

Features to look for in a wedding loan

When planning a wedding, it's all sunshine, rainbows and heart-eye emojis. Which makes sense when you’re getting ready to spend the rest of your life with your soulmate. But you may want to save the mush and gush for the ceremony and keep your game face on while picking out a wedding loan.

Remember wedding loans are just like personal loans, just with a fancier title. Here’s a quick run-down on some of the features to look for when picking one:

  • Unlimited extra repayments: Having this feature means you'll be able to pay your loan off even faster. The more payments you pay, the less you owe in the end.
  • Low or no ongoing fees: Imagine having no or low admin fees for the life of your loan? It's possible. If you see a finance provider with a promotion at the time of your search, look into it - you could be saving a whole heap of fees.
  • Fixed vs. variable rates: Variable rates can change at any time, but, there’s no telling if it will be for the better as there’s no guarantee your financial provider will pass on any RBA cash rate savings (leaving you in the lurch while they profit from you for longer). With a fixed rate (which won't change) you might pay more over time, but your regular repayments won't change, so you'll be able to budget accordingly.

Which lenders offer wedding loans?

Major banks & credit unions:

In Australia most major banks and credit unions offer wedding loans. Generally you’ll just apply for a standard personal loan and then set the loan term and amount you're after. Compare major bank personal loans or click here to check out all our personal loan providers.

Peer to peer lenders:

For an alternative lending option, you might consider a peer to peer personal loan. Peer to peer (P2P) platforms generally offer tiered interest rates - meaning you could score better rates if you’re a creditworthy borrower with a good credit rating. 

P2P interest rates are often lower than traditional banks and other lenders and they generally allow you to pay your loan off early without any penalty.

Wedding loan budget hacks:

The quicker you can kiss your loan goodbye the better right? Here are some hacks to help you get more bang for your buck on your wedding loan:

  • Shop around: Always shop around to find the best deal before applying for a loan, or else miss out on some serious savings. Start by using Mozo’s free personal loan comparison tool to compare your options until you find a loan that suits your current budget and needs.
  • Have a garage sale: Whether you’re moving in together for the first time or you’ve lived together for years, getting hitched is a great excuse to do some decluttering. Not to mention, you could make some serious cash by selling your old bits and bobs... which could go towards paying off your wedding loan!
  • It pays to pay a little extra: If your loan allows it, try to pay more than just the minimum repayment each month. This can really help shave down your loan and get you debt-free in no time.

Wedding cash traps to watch out for

It’s natural to get caught up in all the hype, but you'll need your wits about you if you want to avoid all those sneaky wedding cash traps and get the best deal possible. Here are some common traps to watch out for:

One expensive piece of paper:

Wedding invitations can cost $10 plus per invite. So if you’ve got 100 guests and are already paying $100 a head for the reception, that’s an extra $10 each on top. Got a friend who dabbles in calligraphy? See if they’ll do mates rates or gift you some invites instead to save a bundle.

Forget the photographer:

Mouth still agape after hearing how much wedding photography costs? Buy a disposable camera for each table instead. You’ll be surprised by how well these candid pics will capture the essence of the night. Plus, in this day and age, an iPhone shot could easily pass as something taken on a professional camera. And since most guests will own a smartphone you’ll have your photos in the click of a button!

Ditch the expensive dress:

Why spend thousands on a dress you’ll only wear once when there are some beautiful off-the-shelf options available at a fraction of the price. Check out some up-market online stores, but make sure they have a decent returns policy in case it doesn't suit you.

Call up to let them know that you're looking for a wedding dress, then ask if you can buy a few to try on and return what you don’t keep. Bonus tip: Watch out for dresses that are on sale as some sites won’t accept returns on sale items and you could get stuck with them.

Bridesmaid dresses on a budget:

Bridesmaid dresses and groomsmen attire are a lovely touch to the day, but they don’t need to be custom-made for $500 plus each. Save by buying suits and formal cocktail dresses for your bridal party off the rack instead. If one style doesn't suit everyone, then make it your own and have a spray of colours in a few different styles.

Top wedding guides & articles:

For more wedding savings tips and tricks, head on over to our weddings hub.

Or, check out these popular wedding articles:

JP Pelosi
JP Pelosi
Managing editor

Managing Editor Jean-Paul (JP) Pelosi leads the editorial team, with over 20 years of experience writing for top outlets like The Guardian, The Sydney Morning Herald and JP's expertise in home loans and property is complemented by his rich background at major financial firms including CommBank, Suncorp and Amex. Holding a Master's in Communications and international experience in journalism, JP combines passion with skill and has a unique ability to apply this editorial experience and financial knowledge to advise the team on how to create engaging financial content for Australian consumers.

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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