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How to refinance a Personal Loan

Thinking of refinancing a personal loan? Read on to find out about why you might want to, tips on doing it and answers to some key questions.

What is personal loan refinancing?

You may have heard of home loan refinancing. Personal loan refinancing is similar – you apply for a new personal loan to replace the one you already have. The idea being that your new loan will be different in ways that better suit your current needs and circumstances.  

Why should I refinance?

Access more funds

When you already have a personal loan but want more funds for something else, it could make sense to refinance with one new loan covering both amounts – rather than have two separate loans at the same time. This refinance loan would cover your existing loan plus the new funds needed, while maintaining the simplicity and cost-efficiency of one loan and one set of fees.

Save money

Depending on the interest rate you’re currently paying, you might find refinancing your current personal loan could save you money through a better interest rate, and perhaps on fees as well.

And if you are refinancing a current Westpac loan, we’ll waive any prepayment (early repayment or exit) fees – if they apply – as well as the establishment fee for your new loan. Just waiving the establishment fee would save you $250 straight away. 

Want to know what your new interest rate and repayments would be?

Westpac’s Get My Rate tool allows you to find out in 2 minutes (5 minutes if you’re not already a Westpac customer). Importantly, it does so without impacting your credit score.

Improve cash flow

Changes in circumstance can sometimes mean you want to reduce the size of your regular loan repayments. Refinancing and extending your loan term can reduce that regular repayment amount.

It's important to note that the longer the loan term, the longer you’ll be charged interest on that loan. Therefore, over time you could end up paying more interest than with a shorter-term loan.

Repayment stability

If you currently have a personal loan with a variable interest rate, you may want to refinance to a loan with a fixed interest rate. Doing so gives you repayment certainty, making it easier to plan your budget into the future.

Before refinancing, have you considered?

1. Whether your current personal loan charges prepayment, exit or break fees? 

If your current loan is with Westpac and you want to refinance with us, we will waive your prepayment fee.

If you’re switching your personal loan to Westpac from another lender, you might consider including any exit fee cost they may charge you into the total loan amount you apply for.

2. If you have other debts you’d like to consolidate at the same time?

While refinancing the balance owing on your current loan, you may want to consolidate other debts into that new loan. You can do this by adding your other outstanding debt amounts to your remaining loan balance to create one total amount to apply for in your refinance application.  

If your other debts are with Westpac, we’ll make it easier by automatically repaying and closing those debts included in your application form – saving you time and effort.

3. How likely it is you’ll be approved for a refinancing personal loan?

Refinancing your existing personal loans means you’re applying for a new loan. That means it’ll be subject to the credit criteria of the lender, who’ll also check your credit score as part of their assessment.

If you’re currently making all the repayments on your current loan and other debts (e.g. credit cards) on time, as well as your regular bills (rent, electricity, phone etc.), your credit score should be in good shape. You can find out more about your credit score at


In a word, yes.

If your current loan’s with another lender, head to our Car Loan page. There you can get your rate, so you’ll know what your repayments and potential savings would be up-front. From there, you have the choice to continue with your application online. It takes around 10 mins to do (15 mins if you’re not already with Westpac).

If your car loan’s already with Westpac, you can choose to refinance with another secured Car Loan or, if you no longer want to use your car as security, with an Unsecured Personal Loan. Again, getting your rate and repayments in advance will help you decide. And whichever loan you choose, we’ll waive your establishment fee, saving you $250.

Things you should know

This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice. Please consider your individual circumstances before applying for a Westpac Personal Loan. Credit criteria, fees, charges, terms and conditions apply. Information is correct as of 20 March 2024.

Credit provided by Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.