Skip to navigation Skip to content

Can you refinance a personal loan? Your guide to refinancing with Handy Finance

At Handy Finance, we’ve always taken a tailored approach to personal finance. When you borrow from us, loan terms are always based on your financial situation. The aim of having this approach to loans is to make sure that you can pay back your loan with minimal financial stress. However, it’s not uncommon for someone’s financial circumstances to change while paying back a loan. Refinancing is a great option if you find yourself in this situation. 

<calculator and graph>

To refinance a personal loan, you take out a new loan to pay off an existing one. Why would you want to take out a new loan? You may want to take advantage of more favourable terms – a better interest rate or more time to repay the loan. Maybe it’s time for you to consolidate several loans with different lenders into one, allowing you to focus on one payment and interest rate. These are just some examples of how refinancing works, and how it can benefit your financial situation. 

When do I refinance a personal loan?

Here are some of the most common reasons people choose to refinance their personal loans: 

Change in financial circumstances: if your financial situation changes – perhaps a change in regular income or another unexpected expense – refinancing an existing loan can help you manage the expenses more effectively without increasing financial stress. You can refinance your personal loan to increase the term or combine the existing loan with a new one to cover another expense. 

Merging multiple debts: you and your partner may have taken out loans from several lenders over the years to take care of individual expenses. Consolidating the debt into one loan streamlines your repayments to one sum and allows you to gain more favourable terms on your loan. 

If you’re seeking to lower monthly repayments, reduce your overall debt, or take advantage of an improved credit score, it may be time to consider a refinance of your personal loan. 

What are the benefits of refinancing my personal loan?

Refinancing your loan allows you to revisit the terms of your original loan. Your financial situation may have changed, and you may be offered more favourable terms, like lower interest rates or a shorter loan period. It can make all the difference when it comes to paying off your debt quickly. 

From a management perspective, refinancing can help you streamline your debt. Consolidating multiple loans means only one repayment to make at the same interval and based on the same rate. It makes incoming and outgoing expenses much easier to manage. If you refinance with Handy Finance, you have the option of choosing monthly, weekly, or fortnightly repayments. 

Remember: part of what makes refinancing so attractive is the chance to take advantage of more favourable terms. You may want to check your credit score before moving forward with refinancing to ensure that it has held at the same level or improved so you don’t risk landing less favourable terms. Be sure to check for any exit or break fees before deciding to refinance your personal loan, so you’re across all the relevant costs. At Handy Finance, you only need to pay an establishment fee when you take out your loan – there are no other account-keeping fees included in your repayments. We also have a $0 early repayment fee, so if circumstances allow, you can pay off your loan early at no extra cost. 

When refinancing is not the answer

As attractive as refinancing seems, there will be some situations where it’s not the right option for you. Refinancing a personal loan is all about saving yourself money. If refinancing is not going to offer you better terms, you could end up paying more over the lifetime of the loan. It’s important to weigh up the fees, interest rates, conditions and features of any products you’re considering before you go ahead and refinance your personal loan. If you have any questions or concerns, you can always contact the Handy Finance team and consult about the loan. 

How to refinance a personal loan: your step-by-step guide

If you’ve decided that refinancing is the best step for you, there are several things our credit team recommends you do before applying. 

  • What are your must-haves?: What are the most important features to you? Why do you want to refinance? Are you seeking a lower interest rate, more credit, or an increased loan term? It’s helpful to have your overall goal top of mind before speaking to Handy Finance, so we can advise you on the best loan for your situation.
  • Estimate your new loan figure and create your budget: If you’re consolidating debt or asking for more credit, it’s a good idea to do some quick sums to determine your new budget. You can use our loan calculator to help with this, as seeing a final monthly repayment can be helpful when comparing offers. 
  • Check your credit score and bank statements: Credit scores and bank statements determine your credit rating. Reviewing these two factors before applying for a loan is a good idea. It allows you to correct errors, improve your score and secure better overall refinancing terms. 
  • Speak to Handy Finance: Now that you’ve thoroughly assessed your financial situation, it’s time to speak to our credit experts. They will be able to advise on the different loans available and what works best for you. You can then get on to submitting your application. Once your application has been approved, Handy Finance will release the funds into your account within 24 hours. You can use this sum to pay off the existing loan and close that old loan account, ensuring no outstanding balance. Make sure you cancel any direct debit payments for that loan and create updated ones to pay off the new loan as per the repayment schedule.  

Handy Finance is able to support you if you want to refinance a personal loan, whether it is a loan you already have with us, one from another lender, or you want to consolidate several loans. Contact our credit team to find out more about our debt consolidation loans and personal loans today. 

Eligibility criteria

The eligibility criteria for refinancing a loan with Handy Finance is the same as applying for a loan. You will need to make sure you meet these criteria before you apply to refinance your personal loan. You must be:

  • At least 18 years of age to apply for a loan in Australia
  • An Australian citizen or permanent resident
  • Currently employed – and this includes self-employment – with regular income
  • You must not have a history of bankruptcy or have any outstanding defaults with other financial institutions
  • You must not be a party to a current court judgment.

At Handy Finance, you can apply for your loan online. As part of your application, you must submit supporting documentation proving you meet the eligibility criteria. This documentation should include things like your driver’s licence and bank statements. Make sure you have them ready and with you so that you can complete your application process as quickly and smoothly as possible. Note that Handy Finance uses the Illion Bank Statement service to verify income and expenses through a secure network. Illion allows our credit team access to your bank statements from the last three months in a secure portal that works to prevent theft. You can find out more about Illion at www.bankstatements.com.au/

Refinancing with Handy Finance

We’ve been helping our customers to refinance since we opened our doors – see what they have to say about us:

A pleasure to deal with

Needed a personal loan for refinance and car repairs. The service from everyone I spoke to was great! Better interest rates than the big banks and I was treated like a human being. So helpful in every way.

I highly recommend.

Justin S. 
Productreview.com.au 

Refinance your personal loan with Handy Finance 

If you’ve had a change in your financial circumstances, it might be time to consider refinancing your personal loan. With the help of Handy Finance, you can consolidate your debt under one loan, extend your loan term or request further credit to fund life’s big expenses. Take advantage of more favourable loan terms under a competitive interest rate and consolidated repayment schedule. 

Trust the Handy Finance team to provide affordable, fast and flexible refinance options. We offer personal loans of $2,001 to $75,000 with loan terms between one and seven years. Speak to our credit team today if you want to hear more about our debt consolidation loans or refinance your current personal loan.