How to refinance your personal loan

Refinancing your personal loan can help to consolidate your debt or save you money on your loan.


Whether you are overwhelmed by debt spread across different accounts or you have found a deal that will save you money, refinancing a personal loan can reduce the amount you’re paying or help you manage your debt better.

If you are considering refinancing, it’s important to understand everything involved.

How does personal loan refinancing work?

Refinancing a personal loan works in much the same way as refinancing a home loan. You apply for a loan which covers the amount you have left to pay on your current loan/s and then use the new loan to pay off the original one. Some lenders can even organise the funds to be paid to your existing loan account, saving you the hassle.

You still have the same amount of debt, but you may save money by consolidating your debt or if the new loan offers better terms, lower fees or a reduced interest rate.

Harmoney Unsecured Personal Loan

Harmoney Unsecured Personal Loan


6.99 % p.a.


  • Borrow from $2,000
  • 100% online
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100% confidential application

Harmoney Unsecured Personal Loan

Apply today to get approved within minutes for up to $50,000.

  • Max. loan amount: $50,000
  • Loan term: 36 to 60 months
  • Turnaround time: 99% of approved online applications funded in 24 hours
  • Fees: Establishment fee of $200 for loans from $2,000-$5,000 and $450 for loans from $5,000-$50,000
  • No early repayment fees
  • Personalised interest rates based on your circumstances
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Ready to refinance? Here’s a selection of loans

Data indicated here is updated regularly
Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Monthly Service Fee Establishment Fee
Harmoney Unsecured Personal Loan
6.99% - 29.99%
36 to 60 months
$200-$450 depending on loan size
Apply for an unsecured personal loan up to $50,000 with no early repayment fees. Eligibility: Be a NZ resident/citizen and have a good credit score.
Nectar Personal Loan
8.95% - 29.95%
6 months to 4 years
Unsecured loans from $1,000 with payouts made within one day of approval. Applications entirely online. Eligibility: Must be 18+, an NZ citizen or permanent resident, and have an income of $400 per week or more (after tax).
Lending Crowd Personal Loan
3 or 5 years
$250-$1,450 depending on the amount borrowed
A secured personal loan from $2,000 to $200,000 with repayment instalment options. Eligibility: Be an 18+ NZ permanent resident, earn $30,000 or more, have a good credit history and collateral/security.
QuickLoans Personal Loan
9.95% - 23.95%
6 to 60 months
$95-$595 depending on loan size
Borrow up to $20,000 and apply online within 5 minutes. Eligibility: Be over 18, hold permanent NZ residency, have collateral/security, earn at least $450 per week.
Admiral Finance Secured Personal Loan
13.95% - 23.95%
6 to 60 months
$125-$595 depending on loan size
A secured loan from $1,000 to $50,000 with a quick online application process. Eligibility: Be an 18+ permanent NZ resident, have collateral/security, earn at least $450 per week.
NZCU South Personal Loan (Unsecured)
10.90% – 28.90%
Up to 7 years
An unsecured personal loan up to $50,000 with personalised repayment options. Eligibility: Be an 18+ permanent NZ resident or non-resident on a working visa, earn $500+ weekly.
NZCU South Personal Loan (Secured)
9.90% - 28.90%
Up to 7 years
A secured personal loan up to $50,000 with personalised repayment options. Eligibility: Be an 18+ permanent NZ resident or non-resident on a working visa, earn $500+ weekly.

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Why should I refinance my personal loan?

There are a few reasons people choose to refinance their personal loans, but it boils down to either finding a better deal or consolidating debt.

You’ve found a better deal

  • If you think you have found a better deal, it might be worth using a personal loan repayment calculator, such as the one below, to compare the two loan options and see if the move is worth it. When comparing loans don’t just focus on interest rates, but look at ongoing fees and repayments as well as loan establishment costs. You should also consider the loan’s features to make sure they suit your needs. For example, if you currently make additional repayments you should confirm whether this is allowed for the new loan.

You’re consolidating debt

  • If you are refinancing a personal loan to consolidate debt, then you need to do a few more calculations. First, calculate the total monthly repayments for each existing loan. This includes fees, rates and any other charges you incur with the loan. Then compare this figure to what you can expect to pay for the new consolidated loan. Using a personal loan repayment calculator, as mentioned above, can simplify this process.

How do I refinance my personal loan?

  1. Compare your personal loan options. Take a look at what personal loans are available to see if you can find a better deal.
  2. Calculate the costs of refinancing. Include break and exit fees, and the establishment fees for your new loan to ensure it is worth your while.
  3. Apply for the new personal loan. If you meet the criteria for the new personal loan, submit your application. You may have to inform the lender that your loan purpose is to refinance or consolidate.
  4. Pay out your current loan with the funds from the new loan. If the loan is for debt consolidation your lender may be able to arrange this for you, but with other lenders, you will need to transfer the funds from your new loan into your current personal loan account.
  5. Make sure you close the old loan. Confirm with your previous lender that your loan account is closed, and you have no balance owing.

What are the costs of refinancing a personal loan?

Banks and lenders don’t want you jumping ship every time you see a cheaper rate from a competitor, which is why refinancing comes with a cost. Here are some fees to take into account when you are calculating the cost of refinancing:

  • Application fees could set you back as much as $500, so confirm if you will be charged a fee for the new loan.
  • Early repayment fees are sometimes charged by lenders and can put a considerable dent in the saving you could make from switching.
  • Ongoing fees are also a cost to take into consideration. These fees can add up quickly and may offset a lower rate offered by the new loan.

Is it worth refinancing?

Refinancing costs outweighing

The value of refinancing depends on your current personal loan and your financial situation. To determine the value of refinancing you should:

  • Calculate what your current loan/s are costing you and compare this to the cost of your new loan.

Remember to include the initial cost for setting up a loan and the interest you will save over the life of the loan, not just in the initial period.

  • Consider other features of the loan when deciding whether to refinance.

For example, if you are refinancing from a fixed rate loan to a variable rate you may save money as long as the variable rate lasts, but these rates are called variable for a reason. The rate could increase and you may discover you would have been better off staying with the first loan. The same goes for other features of the loan, you may make additional repayments to pay your loan back sooner, but the new loan you refinance to may not have this option or may charge for it.

When determining the value of refinancing, remember to take all aspects of both loans into consideration.

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