Comprehensive Tips for Borrowing Money: Expert Advice & Strategies

18 Hot Tips For Intending Borrowers

What are the best tips for borrowers looking to make their loan process easier?

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

If you're thinking of borrowing money to buy a car, boat, debt consolidation, home repairs, medical bills or anything else for that matter, here are some red hot tips to make the process much, much easier.

#1. Avoid unsecured loans if possible

Avoid using unsecured personal loans if you can put up some security for your borrowings. This will get you a lower interest rate. A home equity loan, or redraw of extra repayments, allowing you to borrow against the equity built up in your own home or an investment property, is the best option of all, and could get you finance at up to 5 percent less than a personal loan.

#2. Be honest in loan applications

Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.

#3. Can't get a standard loan? There are alternatives

If the banks, building societies and credit unions won't lend to you because you're self employed, newly arrived in the country or have a poor credit history, consider the booming non-conforming and "low doc" loan market. A number of non-bank lenders offer loans which especially cater for this type of borrower. The interest rates on non-conforming loans are generally higher but come down after a few years of on-time repayments.

#4. Check your statements for errors

There are claims that more than 50 percent of loan statements contain calculation errors. Simple mistakes, like the entry of the incorrect balance or the application of the wrong interest rate at the wrong time can be costly and mostly favour the lender. We all make mistakes, even bank computers make them and that's why borrowers should keep a close eye on loan statements. Various software for your home PC is available that can run a check on your statements.

#5. Consider smaller lenders too

When shopping around for a car loan, consider community banks, credit unions and other smaller financial institutions which might be more approachable, and offer lower interest too.

#6. Do you have to take out a personal loan at all?

Think twice before borrowing money without security. You may have a better option already available; home equity extension to your home loan, a new loan that uses your property as security, a credit card, or even a rich relative!

#7. Do you qualify for a 'relationship discount'?

Relationship discounts are available from banks and credit unions for those borrowers who consolidate a range of banking business with the one institution. Home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and credit card annual fee waivers are commonly offered.

#8. Don't just take the dealer finance

Don’t accept loan or lease finance offered by a car dealer before comparing the offer with finance options offered by your bank or other credit providers. Dealer finance might be less hassle but you could well end up with an expensive loan and more restrictive terms and conditions. The same goes when buying furniture or any consumer goods where finance terms are offered.

#9. Don't make multiple applications

Don’t fill out applications at several financial institutions and have all of them checking into your credit history. This can make you look desperate and lower your credit score.

#10. Don't rely solely on comparison rates

All lenders must now include "comparison rates" in advertisements for their home loans and personal loans to help consumers get a feel for their total cost - fees and the interest. Don't rely solely on comparison rates when choosing a loan and beware of their shortcomings. They only take into account fees and interest rates, not the features and how suitable the loan is for your circumstances.

#11. Have the right information when applying

What you will be required to supply in any application for lease finance will depend on whether the lease is for personal or business use.

Personal lease applications will require:

proof of current employment
income details or tax returns

Business lease financing requires more detailed information and may include your:

balance sheet
tax returns
cash flow projections
business plan

Confirm with the lender what you will need before the interview.

#12. Have you considered a credit card?

Consider also a credit card as your source of credit. Interest rates are generally higher but credit cards are easier to secure and offer greater flexibility of repayments.

#13. Honesty counts

#14. Keep accurate records

Keep accurate records of your deposits and ATM transactions. It is also wise to keep copies of your loan application and approval documents in a safe place.

This is the best way to avoid hefty fees which may be charged by a bank when its customers want to see copies of their cheques or loan files.

#15. Know what interest rate applies

When offered car finance, either lease or loan, always be sure you know what interest rate applies. Lenders often ‘sell’ you their finance packages by quoting the monthly repayments only. This may disguise a high interest rate.

#16. Look beyond the banks

Get a feel for what's on offer across the wide range of financial providers around these days. Credit unions, building societies, mortgage originators, community banks and boutique online or telephone banks may offer better interest rates or lower fees than the big banks because they are anxious to win new business or they are non-profit organisations.

#17. Try lenders with whom you are a regular customer

Take advantage of the human factor. Being a familiar face may earn you some slack if your credit background is smudged.

#18. Understand what's on offer

Is the interest rate fixed or variable? What up-front, annual or ongoing fees are charged?

Published: Sunday, 1st Aug 2021
Author: Paige Estritori

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Boat Loans Articles

Mistakes to Avoid When Applying for Boat Financing in Australia

Applying for boat financing in Australia is easier to navigate when you understand the common mistakes that can delay an application, increase costs or leave you with loan terms that do not suit your budget. Before you apply, it is worth reviewing your financial position, comparing lenders and understanding the full cost of owning a boat. - read more

The Role of Deposit Size in Boat Loan Approval

Boat loans are a popular way for Australians to finance their dream vessel, whether it's for leisure or lifestyle. Similar to car loans, they allow you to pay for your boat over time with manageable monthly repayments. Securing a boat loan requires meeting certain criteria set by lenders, which can be influenced by various factors, including your financial history and the deposit size. - read more

Why You Should Consider a Specialist Broker for Your Next Australian Boat Purchase

The allure of the open waters, the thrill of steering your very own vessel, and the prestige of boat ownership are undeniably intoxicating dreams for many. Whether zipping through waves on a swift personal watercraft or unwinding aboard a serene sailboat, purchasing a marine vessel in Australia holds a certain romantic appeal that's hard to resist. - read more

Setting Your Course: Fixed and Variable Rate Boat Loans Explored

The allure of the open waters is undeniable, and for many Australians, the dream of owning a boat is akin to the ultimate freedom. Whether it's for leisurely sails along the coast, fishing adventures, or simply the joy of the aquatic lifestyle, boats represent an escape from the everyday grind. However, the pursuit of this dream often comes with a significant financial consideration: boat loans. - read more

How Boat Loan Calculators Estimate Repayments in Australia

Boat loan calculators can help Australian buyers estimate repayments before applying for marine finance, but the result depends on assumptions about the loan amount, rate, term, fees, repayment frequency and any balloon payment. - read more

What Australian Boat Buyers Need to Know About Financing Rates

When considering purchasing a boat, one of the most critical factors to take into account is the financing rate. Understanding how interest rates work can make a significant difference in the total cost of the boat over the lifespan of the loan. Knowing the ins and outs of boat loan interest rates can save you from unexpected expenses and financial stress down the line. - read more

Finance News

What Sydney Boat Show Momentum Means for Boat Buyers

19 Aug 2026: Paige Estritori

The 2026 Sydney Boat Show has given Australia’s recreational marine market another useful temperature check. After the event’s return to Sydney Showground at Sydney Olympic Park, industry attention has shifted from the display halls to what the buyer activity may mean for boat sales, dealer pipelines and household finance decisions over the months ahead. - read more

Why the Latest Rate Watch Still Matters for Boat Buyers

12 Aug 2026: Paige Estritori

Australian borrowers are again watching the interest-rate outlook closely, with the latest business coverage pointing to a familiar mix of inflation, employment and consumer-spending signals shaping expectations for lenders and households. For boat buyers, this is more than an economic headline. It can influence how lenders price risk, how confident households feel about discretionary purchases, and how carefully buyers need to structure marine finance before committing. - read more

Why the Rate Cycle Matters for Your Next Boat Purchase

04 Aug 2026: Paige Estritori

Australian borrowers are again watching the interest-rate cycle closely, with recent business coverage pointing to a more cautious but less anxious tone around future monetary policy. For boat buyers, the important message is not that finance will suddenly become cheap, but that the market may be moving into a phase where planning and timing matter even more. - read more

Sea-Trex Growth Points to a Practical First-Boat Market

21 Jul 2026: Paige Estritori

Sea-Trexâ€™s first year back in the Australian market is a timely signal for buyers who want boating to remain achievable, not just aspirational. Relaunched in July 2025 by Tim Stessl, the entry-level brand has now built a dealer network across Queensland, Western Australia and Victoria, with expansion into New South Wales and South Australia already underway. - read more

Why Perthâ€™s 2026 Boat Show Matters for Buyers

07 Jul 2026: Paige Estritori

The 2026 Perth Boat Show is shaping as a useful barometer for Western Australiaâ€™s recreational boating appetite, with organisers positioning the event as one of the stateâ€™s strongest marine showcases in recent years. Scheduled for Friday 4 September to Sunday 6 September 2026 at the Perth Convention and Exhibition Centre, the show is expected to fill all six pavilions and bring together more than 90 exhibitors. - read more

Grand G980 Arrival Highlights Premium RIB Demand

30 Jun 2026: Paige Estritori

Grand Boats Australiaâ€™s Southern Hemisphere debut of the Grand G980 adds another notable option to the premium recreational boating market. The 10-metre rigid inflatable boat is positioned as a flagship adventure RIB, combining high-performance offshore capability with the kind of comfort features usually associated with larger cruisers. For Australian buyers, it is another sign that the local market remains interested in versatile boats that can handle family days, coastal exploring and overnight escapes. - read more

Click for more Finance News

Start Here

Quotes are offered free & without obligation. We respect your privacy.

Knowledgebase

Collateral:
An asset that a borrower offers as a way for a lender to secure the loan.