Are you looking to get a personal loan? If yes, you must look for a reliablepersonal loan finance broker Sydney that will understand your requirements and help you get a personal loan that matches your circumstances. Instead of applying directly with a bank/lender, it is suggested to apply through a broker. Usually, the brokers are responsible for contacting the lenders they are affiliated with and then helping you find a loan that is right for you
What is a Personal Loan Finance Broker Responsible for?
Brokers for personal loan work in the same way as mortgage brokers do. They help you get the best deal on your loan. Brokers can help you with a wide range of personal loan products offered by a panel of lenders. Regardless of whether you are planning to buy a car or planning a holiday, a broker can help you with choosing a suitable product. Brokers search for a personal loan within their lending panel which is the group of lenders. Once you choose a broker’s services, brokers will find a loan product from one of these lenders.
How Much Personal Loan Can I Borrow?
It is important to know your borrowing capacity, whether it’s for a holiday, a car purchase, home renovations, or a wedding. Your borrowing capacity will help you determine how much you can borrow and pay back to a bank/lender. It simply indicates how much you can safely afford to borrow without skipping your repayments. To get an idea of how much you can borrow, you can use Star Homeloans’borrowing power calculator
What Types of Personal Loans are Available?
Personal loans come with a wide range of terms and flexible products. When you decide to take a loan for personal purposes, you need to know your needs and get to know different options.
- Secured Personal Loans
One of the most common types of personal loans is a secured personal loan. With this type of loan, your asset(s) will be used as a security for the loan. It means that as a part of your loan approval, you will give the right to lenders over the asset, usually in the form of a charge or mortgage. When you choose a secured personal loan, you can get a large loan amount for the long term. You can ask a broker near you about this type of loan by searching for ‘personal loan agents near me.
- Unsecured Personal Loans
When it comes to unsecured personal loans, you don’t need to put any asset as a guarantee or security for a loan. In this case, a lender’s decision to give you a loan amount is completely based on how creditworthy you are. In simple words, they’ll consider whether you can make your repayments on time or default on the loan.
- Fixed Rate Personal Loans
As the name implies, the amount you need to pay in interest will be fixed throughout the loan term. It means your weekly, fortnightly, or monthly repayments will remain the same. With fixed rates, you benefit by knowing that your repayments will remain unchanged regardless of changes in the market. Being one of the best personal loan brokers in Australia, Star Homeloans can help you find the right option as per your circumstances.
- Variable Rate Personal Loans
As the name suggests, variable-rate personal loans can vary over the lifespan of the loan. The reason behind changes in variable rates can be any, such as cost of funds, market changes, etc. With variable-rate personal loans, you can make additional repayments. As a result, you can pay borrowed amount early.
Reasons for Applying for a Personal Loan
There could be various reasons to get a personal loan, such as:
- Home renovations
You might be thinking of home renovations. If so, then you can take a personal loan to make various changes to your home.
- For a wedding
Everyone knows weddings can be costly. And, many people take personal loans for arranging a wedding.
- Need a holiday break
If you want a holiday break for any reason, you can apply for a personal loan. You can get in touch with a broker near you by searching for a ‘personal loan broker near me’.
- Debt consolidation
If you are stressed out because of different debts, and different interest charges, then you can use a personal loan to pay them all off.
- Buy a car
If you are looking to buy a car but you don’t have enough time to save the full cost, then a personal loan can help you.
If you are looking for a personal loan, make sure to seek help from a reliable broker. Moreover, you can speak to one of our brokers at Home Star Home Loan, where we’ll guide you through the personal loan process.