refinance personal loans

How to Refinance a Personal Loan

Refinancing a personal loan means that you pay off an old loan with funds from a new one. This new loan should save you money on interest and fees, and allow you to make lower monthly repayments. It could also give you a chance to borrow extra funds. Compare refinance personal loans below to see what your new monthly repayments might look like.

Fact Checked

Refinance personal loan comparisons on Mozo - last updated 17 May 2022

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure
  • Personal Loan

    Unsecured, Fixed, Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.39% p.a.to 7.89% p.a.
    6.39% p.a.to 8.49% p.a.based on $30,000
    over 5 years

    With low rates for borrowers with excellent credit, a quick 1 minute rate estimate and simple online application, there’s a lot to love about this loan! You’ll not only benefit from no exit fees, there are also no early repayment fees. You could qualify by simply earning above $25,000 and you’ll be on the way to start spending (other eligibility criteria may apply).

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 6.39% would cost $35,126.40 including fees.

    Compare
    Details
  • Green Loan

    interest rate
    comparison rate
    Monthly repayment
    5.79% p.a.
    6.36% p.a.based on $30,000
    over 5 years

    Handypay offer flexible green loans up to $75,000 for Excellent Credit or better. Handypay is a specialist home improvement plan provider.

    Repayment terms from 1 year to 10 years. Representative example: a 5 year $30,000 loan at 5.79% would cost $34,873.55 including fees.

    Compare
    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.35% p.a.to 19.09% p.a.
    6.14% p.a.to 19.99% p.a.based on $30,000
    over 5 years

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.35% would cost $34,832.61 including fees.

    Compare
    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.95% p.a.to 17.45% p.a.
    6.79% p.a.to 17.86% p.a.based on $30,000
    over 5 years

    Wisr offers personal loans for any worthwhile purpose, tailored to your credit score to ensure you’re getting a fair deal. Plus, no ongoing or early exit fees. Loans from $5,000 to $79,000. Terms of either 3, 5 or 7 years. $595 establishment fee. Eligibility criteria applies.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $35,352.21 including fees.

    Compare
    Details
  • Home Improvement Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    5.75% p.a.
    5.96% p.a.based on $30,000
    over 5 years

    Handypay offers flexible home improvement loans for Excellent Credit or better. Handypay is a specialist home improvement plan provider and offers loans up to $75,000.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $34,840.18 including fees.

    Compare
    Details
  • Secured Car Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.79% p.a.
    7.16% p.a.based on $30,000
    over 5 years

    Reach your goal sooner without being penalised with $0 early payout fee. $0 monthly fees. Choose to make either monthly, fortnightly or weekly repayments to suit your income and budget. Winners of Australia's Best Large Credit Union in 2020.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.79% would cost $35,729.09 including fees.

    Compare
    Details
  • Standard Personal Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    7.99% p.a.
    8.62% p.a.based on $30,000
    over 5 years

    Heritage Bank discounted rates for borrowers with excellent credit. Available loans starting from $5,000 to $25,000. Your choice of loan terms up to five years. Extra repayments allowed, but may incur fees.

    Repayment terms from 1 year to 7 years. Representative example: a n/a year $0 loan at 7.99% would cost $6,988.90 including fees.

    Compare
    Details
  • Personal Loan

    Variable

    interest rate
    comparison rate
    Monthly repayment
    5.75% p.a.to 25.99% p.a.
    6.68% p.a.to 29.2% p.a.based on $30,000
    over 5 years

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $35,370.18 including fees.

    Compare
    Details
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FAQ

Refinance personal loans: what you need to know

With interest rates at record lows, now is a great time to snag a competitive personal loan deal. But before you kick off your comparison, read our refinance guide to ensure you choose the best possible loan for you.

Why refinance?

There are plenty of reasons to refinance your current personal loan, including:

  1. Debt consolidation: If you're finding it hard to get ahead with your current loan and credit card repayments, you could roll over your multiple debt into one single loan called a debt consolidation loan. You'll get a lower overall interest rate, saving you money, and because you'll only have to manage one monthly repayment budgeting will be easier.
  2. Better deal: Chances are you got a great deal when you took out your loan but how competitive is that rate now? Mozo's debt consolidation loan comparison table helps you find a great value loan by allowing you to input how much you want to borrow and showing you the potential monthly repayments available for each loan option. Repayments will vary from person to person depending on which loans you are eligible for, the interest rate you qualify for, and other factors.
  3.  Higher credit limit: Perhaps you signed up with your loan a while ago and your lifestyle has changed due to factors like a growing family. In this case you might be looking for a new loan with a higher borrowing limit.
  4. Longer timeframe: Alternatively, you could be finding the timeframe that you took out the loan for is too short and are looking for a new loan with a longer period to bring down your ongoing repayments.

Finding the right refinance loan

Whatever your refinance reason, the same rules apply to ensure you make switching worth it. Here are our top tips:

  1. Compare interest rates

With refinance personal loans you'll have the option of a variable interest rate, which may go up or down over time, or a  fixed interest rate where your repayments will be fixed for your loan term.

What's better? Well, that really depends on your financial circumstance. Here are some pros and cons to help you weigh up your options.

Fixed interest refinance loan

Pro: Easy budgeting. When you sign up for a fixed rate loan you'll know what the repayments will be every repayment date making it easier to budget. So no matter what happens to the economy, you will have the security of knowing your interest rate will remain the same.

Con: Less flexibility. With fixed rate loans, features like extra repayments and redraws may be limited or not available. Also if you do think you'll be able to pay out the loan early, you might have to pay a break cost fee. This can be expensive depending on how much of the loan term is left, so before locking in for a long term read the fine print to ensure you time your exit appropriately.

Variable interest refinance loan

Pro: Extra features. There's a clear reason why many borrowers opt for variable rate loans. In addition to more competitive interest rates than their fixed rate counterparts, variable loans have features that can save you money. Ones to look for include free extra repayments, free redraws and flexible repayment frequency.

Con: Affordability. With variable rate loans your interest rate will go up and down with the market. You'll need to have some flexibility in your monthly budget to ensure that if rates go up, you'll be able to afford the repayments. It is a good idea to factor in a rate change of up to 2% when doing your sums.

And don't forget to check the...

Comparison rate: There's another interest rate that all lenders are required to display by law when advertising their loan called a comparison rate. Basically it's a merger of the interest rate with the upfront fees you will incur and makes it easy to compare the true cost of the loan.

2. Watch out for high fees

Interest rates are often considered the biggest money drain when it comes to taking out a personal loan however if you're not careful, fees could also end up costing you big time.

Application fee: When you apply for a personal loan lenders usually do things like check your credit report. To cover this cost and any other administration charges you may be charged a flat application fee by the lender. This will be charged at the start of your loan. Application fees can be as much as $600 so it pays to shop around. This is why you will often seen a big difference between the headline interest rate (the amount of interest you will pay) compared with the comparison rate (the amount of interest plus fees).

Service fee: When you've got the tick of approval and you've refinanced to the new loan, you could also be charged an ongoing monthly fee. However, with many lenders waiving this fee, we would always recommend looking for a new loan free of the monthly fee bite - a $10 monthly fee over 5 years is $600.

Break cost fee: As mentioned earlier in this guide, exit fees can be charged on fixed rate loans, which will be a troublesome fee if you try to pay off your loan early.

3. Look for flexible options

Extra repayments: The best place to put extra money that comes your way is into your personal loan, as the life of your loan will be reduced and you will pay less interest. So when you begin to compare loans, check that this option is available for free.

Personal loan redraw: When a personal loan comes with an extra repayments facility, it will commonly also allow redraws on that extra money you've put towards your loan. While we agree it's a handy option, if it is put to good use like making small upgrades to your home, we should warn you that redrawing on that money will increase the life of your loan and the interest you pay.

Weekly, fortnightly or monthly repayment cycle: If you are given the option of choosing your repayment cycle, always choose the weekly or fortnightly option, as you will pay off an extra month in a year, compared to the monthly option.

4. Get advice from other customers

While a competitive interest rate and low fees is important, don't forget other things like customer service. Reading reviews from customers like you will help you get a sense of whether the lender you're considering ticks the boxes across everything from price to customer service. Mozo has customer reviews from big bank, peer to peer and non bank lenders, you can read reviews or search for a provider directly here.

5. Crunch the numbers

Mozo can help with the number crunching. Our Switch & Save Calculator has been designed specifically for people like you who are looking to refinance. Simply tell us some details of your current loan (lender, how much you want to borrow and your current monthly repayment) and we'll tell you which loans will cost you less, compared to your current personal loan.

Alternatively, simply use the table above to input how much you want to borrow and quickly compare your existing loan with the refinance personal loans available from a wide range of Australian lenders today.

Personal Loan Reviews

St.George Personal Loan
Overall 8/10
Not bad but could be better

The interest rate does seem higher than other banks. I would love it to be more competitive

Read full review

The interest rate does seem higher than other banks. I would love it to be more competitive

Price
6/10
Customer service
7/10
Convenience
9/10
Trust
8/10
Less
Liza, New South Wales, reviewed 15 days ago
Commonwealth Bank Personal Loan
Overall 4/10
Beware: They sold me Junk Insurance

Took out a $10,000 personal loan for a medical procedure. I’ve been a lifelong customer of Commonwealth Bank and thought they’d offered me a good package as this is the first and only loan I’ve had. Was unknowingly sold junk insurance and am now part of a class-action suit for a refund of the insurance and interest they charged. Here’s hoping they do the right thing!

Read full review

Took out a $10,000 personal loan for a medical procedure. I’ve been a lifelong customer of Commonwealth Bank and thought they’d offered me a good package as this is the first and only loan I’ve had. Was unknowingly sold junk insurance and am now part of a class-action suit for a refund of the insurance and interest they charged. Here’s hoping they do the right thing!

Price
4/10
Features
3/10
Customer service
7/10
Convenience
7/10
Trust
2/10
Less
Stephanie, New South Wales, reviewed 20 days ago
Bendigo Bank Unsecured Personal Loan
Overall 10/10
The bank who cares

They are very transparent with their fee's and we were able to get an unsecured loan to pay off our credit card and pay for a trip to England when my father died. We only had one person who was on a permanent wage and don't live in a home we own. No mortgage and we've managed to have it almost paid off in 4 years

Read full review

They are very transparent with their fee's and we were able to get an unsecured loan to pay off our credit card and pay for a trip to England when my father died. We only had one person who was on a permanent wage and don't live in a home we own. No mortgage and we've managed to have it almost paid off in 4 years

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Michelle, New South Wales, reviewed about 1 month ago

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