Personal Loan in Morphett Vale

What is a Personal Loan?

 

At Mortgage Choice, we understand there are special times in life when you could use a little extra cash for things like planning a wedding, taking a well-deserved holiday, completing some home renovations or giving the kids a high-quality education.

A personal loan is a short-term loan of typically 5-7 years, often with interest rates higher than that of mortgages but lower than that of a credit card, offering a useful solution for those special projects. Also, because you are assessed based on your credit risk and experience, the turnaround time for approval is usually much faster than that of a mortgage too.

There are many factors to consider when weighing up your options and that’s where Mortgage Choice Morphett Vale can help you. We will do all the legwork by comparing multiple products from a range of lenders, we will discuss and help you decide what type of loan is right for your individual goals and assist you through the application process through to settlement.

 

Types of Personal Loans

 

Secured Loan

If you are purchasing a major item such as a boat, or if you own one already, a lender may be willing to take it as a security or collatoral for the loan. This could mean that you are entitled to a lower rate than that of an unsecured loan as the lender has a lower risk of loss if you fail to make your repayments. It can also mean that you have a higher chance of getting approved!

 

Unsecured Loan

Unsecured loans are those that do not require you to own any assets to apply, whilst also giving you greater flexibility to use the funds as you wish. However, it is important to be aware that the interest rates are often higher than secured loans as the lenders perceive these loans to be a higher risk because you have nothing to fall back on if you can not make repayments.

 

Fixed Rate Loan

For those of us that like the security of knowing exactly how much our repayments will be over the lifetime of the loan, a fixed rate loan is the way to go. Fixed rate loans are exactly that, loans where the rate of interest is locked in and will not change, allowing you to easily budget and forecast your repayments.

 

Variable Rate Loan

On the flip side, variable rates can be subject to change and the interest can either increase or even decrease during the life of your loan. Variable rate loans can also be more flexible if you would like to repay your loan faster, as lenders may allow you to make extra repayments on the loan.