Planning your wedding can either be a fun bonding experience or a source of unnecessary strain on a flourishing relationship. With the cost of the average Australian wedding (and let’s not forget about the honeymoon), it’s no surprise that couples may get a personal loan to pay for their big day. If you’re figuring out how to balance your wedding books, this article will equip you with the need-to-know information on wedding loans.
A wedding loan is simply a personal loan that can be used to pay for wedding expenses such as booking catering, hiring a venue, or purchasing a wedding dress. Once the funds are deposited into your account, it’s entirely up to you how you use them to make your big day perfect.
Couples use wedding loans for a wide variety of reasons, including:
Perfect proposals: You can take out a wedding loan to let your partner know they’re the one with their dream engagement ring.
Wedding deposits: Whether you want to splurge on venue hire, photographers, or your cake, you’ll need to put deposits down early to lock in your date.
Creating a buffer: Many couples who rely on their savings to pay for their wedding still prefer to take out a wedding loan to cover unforeseen expenses.
Booking a honeymoon: A wedding loan can ensure the first trip you take together as a married couple will be one to remember.
As with all things wedding, it pays to shop around for your wedding loan. There are a few factors that will make a big difference when it comes to the total cost of your loan:
Wedding loans often include an establishment fee (sometimes called an application fee) as well as early and late repayment fees. Remember to calculate the true cost of your loan including all fees, not just interest.
If you're looking at your wedding budget and asking, “How are we going to pay for this?”, chances are that you want to consider all the finance options available to you. When dipping into savings isn’t an option for you, there are three main ways you can finance your wedding: A wedding loan, a credit card, or a line of finance.
Wedding loans offer many benefits including the stability of a regular repayment routine, a fixed end-date, often lower interest rates than credit cards, and flexible loan terms (how long you have to pay off your loan). Downsides to wedding loans include the need to start paying your loan off as soon as you get it, and possible early repayment fees (depending on which lender you choose).
Getting a credit card to pay for your wedding may seem like a convenient financial stopgap, but you’ll need to decide if the pros outweigh the cons. On one hand, credit cards are easy to apply for, can include interest-free periods, and are an easy way to pay for things on an overseas honeymoon. On the other hand, you can expect very high interest rates to kick in once any interest-free period is over, little pressure to pay down the balance of your credit card, and a range of fees including overdraw fees, annual fees, cash advance fees, and more.
If you’re looking at finance options for your wedding day, check out the RACQ Bank personal loans page. There you can check out the latest information on the personal loans we offer, including:
Or, if you’d rather chat to us about funding your wedding, call one of our lending specialists on 13 1905. We’ll help you find the product that puts the control over your wedding budget back into your hands.
Banking and loan products issued by Members Banking Group Limited ABN 83 087 651 054 AFSL/Australian credit licence 241195 trading as RACQ Bank. Terms, conditions, fees, charges and lending policies apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the disclosure documents for your selected product or service, including the Financial Services Guide and the Terms and Conditions, and consider if appropriate for you before deciding.
Except for RACQ Bank, any RACQ entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of RACQ Bank. RACQ Bank does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.
The Personal Loan Special is available for new lending only. Personal Loan Special not available for loan applications made for debt consolidation purposes.
Comparison rate calculated on an unsecured loan amount of $30,000 over 5 years based on monthly repayments. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.