FAQ

Secured Caravan Loans are most commonly arranged at a fixed interest rate. This means that the interest rate will stay the same for the entire term of your loan as arranged. If the official interest rate as determined by the Reserve Bank is changed, it will not affect your fixed interest rate loan. You will not have to refinance an existing loan or address your loan when general interest rates vary. Refinancing may be attractive to some borrowers if their existing loan was established at a time of much higher interest rates or from a lender that does not offer the current lower achievable interest rates. Refinancing may also be sought if a borrower would like to change their loan repayment schedule or other for other personal reasons such as changes in their circumstances.

The interest rate for refinance loans is in line with the interest rates on original caravan loans. By in line, we refer to being derived by lenders based on the same criteria and risk assessment of the applicant and consideration of the caravan. The current interest rate will change at different times according to variations in general consumer finance rates and other changes in the lending sector environment. The specific interest rate that you will be offered will be advised when you receive a refinance offer based on your specific application and requirements. The age of the asset may affect the interest rate when refinancing into another secured loan.

When refinancing a caravan loan, the same loan types are available as for original loans. The Secured Caravan Loan is the most popular caravan loan and suits many caravan purchases. The lender accepts the caravan as security against the loan and the borrower makes regular monthly repayments over the fixed loan term to repay the loan. In sourcing a refinance quote, people usually seek the full payout amount of their existing loan including any fees and charges applicable for paying out that loan early to be included in the new loan. If the caravan is not accepted as security by the lender due to age or other aspects, the option of an Unsecured Personal Loan can be considered. The interest rate is higher on unsecured loans compared with secured loans.

Yes. Refinancing involves sourcing a new loan to replace an existing loan at a time part-way through the existing loan term. The refinancing process follows the similar process as the original loan application process. Applicants will need to complete a loan application form and request a quote from a lender or through a broker. When refinancing, people need to keep in mind any costs involved in paying out the original loan early. Break fees apply to Secured Caravan Loans and Unsecured Loans at fixed interest rates and these should be taken into account when considering refinancing.