Refinance Personal Loan
Refinance your personal loan to a more affordable and flexible offer by comparing your options here with Savvy.
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The personal loan features to consider with Savvy
Compare rates and save
You can cut down on the cost of your current personal loan by opting for one which offers a lower interest rate and potentially save hundreds.
Compare lower fees
Similarly, look out for lenders with cheaper added charges, with ongoing service fees, establishment fees and early payment fees all able to be waived.
Borrow up to $75,000
If you’re looking to add more money to your loan agreement, you can take out more on top of your initial loan from $2,000 up to a maximum of $75,000.
Repay over up to seven years
For borrowers looking to make their repayments more manageable, you’ll be able to choose terms up to seven years in length (or as short as one if you become able to contribute more).
Customisable repayment schedules
You’re also able to alter the frequency of your repayments, with our lenders offering instalments on a weekly, fortnightly or monthly basis.
Free additional repayments
On top of these, you’ll be able to enjoy flexibility in your repayments to contribute over and above the minimum requirements to cut down on the term of your loan.
Fixed or variable interest
If you’re wanting to switch to a different interest rate on your personal loan, our lenders can offer both fixed and variable rates as part of their financing agreements.
Money sent in as few as 24 hours
Importantly, you can enjoy a quick turnaround time and move to a newer and better loan within one day of your initial application.
Types of personal loan
Why compare personal loans through Savvy?
100% free
There's no need to worry about forking out to compare offers. Our service is free, so you can come back whenever you like.
Paperless applications
You won't need to worry about sifting through documents and visiting the post office, as they can all be submitted online.
Reputable lending partners
We've partnered with personal loan companies you can trust to ensure your comparison is a high-quality one.
Why should I refinance my personal loan?
To access a lower rate
Because interest rates have such a significant bearing on the cost of your personal loan, many borrowers jump at the opportunity to take advantage of low rates. It’s easy to see why with the following example:
Lauren has taken out a $50,000 personal loan over six years at an interest rate of 9% p.a. With half of her loan repaid and three years remaining, she finds a personal loan offered by another lender at a 6% p.a. interest rate. She calculates that taking out a three-year, $25,000 personal loan at the new rate would save more than $1,200 over the remainder of the loan term.
Determining that this is worth other associated costs, Lauren decides to refinance her personal loan and save a significant sum she would’ve otherwise lost.
To consolidate existing debts
One of the most common reasons borrowers look to refinance their existing personal loan is as a means of incorporating their other debts under one singular payment. This example explains why this is adopted by so many borrowers.
Steven took out a $30,000 personal loan over seven years at 8% p.a. interest rate and after one year, he’s repaid $5,000 of the principal amount. He also has an existing car loan at 8.5% p.a. with $15,000 remaining over three years. In addition to this, Steven has outstanding debts on his two credit cards: a $2,500 debt at 18% p.a. and a $1,500 debt at 21% p.a.
By consolidating all of his debts into one singular $44,000 personal loan ($25,000 personal loan, $15,000 car loan and $2,500 and $1,500 credit cards) at an 8% interest rate over six years, Steven would save well over $200 per month on repayments and over $4,000 in total compared to paying each debt individually*.
*figures based on minimum required credit card repayments
To extend your borrowing term
You may simply want to refinance your personal loan to make your repayments more affordable from month to month. Refinancing allows you to keep your loan at the same amount outstanding whilst adding further years to your repayment period.
For example, if repayments for a three-year, $25,000 personal loan were too great, you could refinance to a five-year term to make them more manageable with your monthly budget. It’s important to note, though, that this method will increase the total cost of your loan by extending the period over which you’re paying interest and fees.
To take advantage of a higher credit score
Your credit score is likely to improve over the course of your personal loan repayments which could have a meaningful impact on your credit score, particularly if you entered the process with a less than perfect one. Lower interest rates are reserved for borrowers who have proven themselves to be highly trustworthy with repaying debts in the past, but they’re constantly in flux.
If your rating rises from okay to good, or even bad to okay, the interest rate you’re eligible to receive will fall, providing you with the opportunity to save further on your loan. Additionally, this can enable you to borrow a greater amount if your credit has increased.
Frequently asked questions about refinancing personal loans
Helpful personal loan guides
Still looking for the right personal loan?
Personal loans come in all shapes and sizes, so read more about the ways you can use them, as well as how they might work for you.
