Wedding Loans

Make your big day unforgettable with the help of a wedding loan

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. 

What is a wedding loan?

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.

Why do couples take out wedding loans?

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.

How do we compare wedding loans?

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 loan term

Different lenders will require you to repay your wedding loan within a certain amount of time, usually between one and seven years. The longer you take to repay your loan, the smaller your regular payments will be, but the more interest you will pay in the long run. If you’re keen to pay your wedding loan off as soon as possible it’s a good idea to ask your lender if they charge customers early repayment fees.

Fees and charges

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.

Are there alternative ways to pay for our wedding?

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

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).

Wedding credit cards

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.

Want to know more about personal loans for weddings?

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:

• Interest rates
• Fees
• Terms
• Limits
• Repayments
• Applying for a loan

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.