Wedding Loan

The average cost of an Australian Wedding is around $40,000, and that’s not including the honeymoon. With wedding photographers quoting  $3,000, the historic church you've dreamed of exchanging your vows in requesting $2,500, and the caterer estimating $100 per person, your wedding budget can very quickly reach daunting levels. Couples finance their dream weddings using a variety of sources including savings, contributions from family, and wedding loans.Wedding ring exchange

Wedding loans are designed to allow you to use the funds borrowed to pay for any of the costs associated with the wedding day, including celebrating your engagements, throwing bucks and hen nights, covering all the actual wedding days costs and even paying for your dream honeymoon.

Our loan repayment calculator offers you an easy way to see how much a wedding loan may cost by estimating the monthly repayments from selected providers once you have input the amount you wish to borrow and your preferred term over which you’d like to repay the loan.

Comparing wedding loans

Wedding loans are essentially personal loans that borrowers can use for pretty much any purpose they wish. When comparing wedding loans there a range of features you should consider in conjunction with identifying the lowest interest rate. These features include:

  • Ability to make extra repayments - The inclusion of this feature gives you the option to make repayments above the required monthly loan repayment. The main advantage of this is that it will enable you to repay the loan of faster and save on interest charges.
  • Low or no ongoing fees - many wedding loans feature monthly account fees of between $10 and $20 per month, which don’t sound much, but once you consider these fees over the full term of your loan they can be significant, for example a monthly fee of $10 on a 5 year term would cost you $600 in fees.
  • Repay the loan early - The ability to repay the loan in full before the end of the term may seem a useless feature when you are initially taking out your wedding loan, but your circumstances may change which will facilitate such an early payment of the wedding loan which could save you heaps in interest charges.
  • Up front account set up fees - The majority of Wedding Loans include a fee to cover the lenders cost of setting up the loan, this fee generally ranges from $100-$250.
  • Comparison Rate - This rate represents the interest rate of the loan when the minimum rate is combined with the upfront fees associated with the loan, such as any application fee. When making a comparison of these rates it is important to check that the comparison rates have been calculated on alike for like basis, so for example for a loan of $10,000 over 3 years.
  • Variable rate vs. Fixed rate - Most personal loans offer the option of a variable or fixed interest rate. The variable option will be lower rate than the fixed option and the rate may fluctuate across the term of the loan, at the discretion of the lender. If you choose a fixed rate loan you are assured that the rate will not move for the period of the loan and so your repayments will remain constant for the full loan term.
  • Loan term - If you can afford to repay your wedding loan within a shorter timeframe, you'll end up paying less interest overall whilst a longer timeframe will result a higher total interest bill.

 

Applying for a wedding loan on line

The eligibility criteria for wedding loans differs slightly by provider, though generally you will need to be able to answer yes to the following 4 statements:

  • I am over 18 years of age
  • I am a permanent resident of Australia or an Australian Citizen
  • I have a good credit rating
  • I have an email address

 

To make an application for a wedding loan you will be required to provide arrange of information which will generally include:

  • Personal details including your name & contact information
  • Proof of identification - Passport, drivers license or medicare card
  • Name and contact details for your employer.
  • Details of your employment - is it full or part time and what is your annual salary
  • Financial details - to include details of your assets, liabilities, and any other credit accounts

 

Getting your Wedding Budget in check

 

Tips on how to bring the costs of your wedding back to earth.

Whether you're planning to take out a wedding loan or not, it’s wise to appraise your wedding budget and keep it in check with what you can afford. The perfect wedding doesn't have to break the bank, and there are many ways you can enjoy the ceremony and day of your dreams without spending thousands – you just need to know how. Below we offer our top money saving tips to help keep your wedding budget in check.

 

Cut everyday spending

Making small changes to the way you spend money each week and sacrificing some of your personal luxuries could really boost your wedding savings. Start making tea or coffee at work rather than splashing out on café-bought drinks, for example, and try to avoid going on any shopping sprees that aren’t related to your wedding.

 

Get married off-season

The summer months are the most popular among couples getting married, and venues and wedding service providers know this and reflect this popularity in their prices with summer prices being around 30-40% more than winter prices. By hosting a winter wedding, you could save money that can be spent on making your big day extra special, or put towards your dream honeymoon). To save even more consider holding your wedding day midweek when rates are even more competitive, as demand is low.

 

Add personal touches and save

Rather than relying on professionals for details such as decor, photographs, catering and make-up, get creative and see where you can exercise your own or friends and families skills. You could make your own table decorations, invitations and flower arrangements, ask a friend or family member to take photos for a much smaller fee than a wedding photographer.

 

Keep the guest list to those people who are dear to you

Your guests will account for a significant proportion of your total wedding bill, so, if this is an option, cut costs by inviting fewer people. Smaller ceremonies are far more intimate, and you’ll spend the day surrounded by your closest friends and family.

 

Stick to your wedding budget

To ensure that you don’t go too overboard with your wedding spending, have a budget in place to keep control of your outgoings and ensure peace of mind throughout the whole planning process. Figure out your priorities and decide which areas you don’t mind cutting back on, if necessary. Settle on a maximum amount you want to spend and ensure you can afford it. Our personal loan repayment calculator will be useful when working out what budget you can afford.

Frequently Asked Questions

What types of wedding costs can I use a Personal Loan on?

A wedding loan could help you pay for the dress, venue, catering, honeymoon and all the other costs that come up when organising a wedding.

Can we pay for our Honeymoon using a Wedding Loan?

Yes, a Wedding Loan can be used to pay for your dream honeymoon.

How much can we borrow with a Wedding Loan?

Loans of up to $55,000 are available, with the amount you are able to borrow being determined by the borrower when they assess your loan application. If you submit your wedding loan application on line you will generally receive the borrowers decision by email within 20 minitues, which will include the amount they are willing to lend you.