Getting to Know Personal Loans and Mortgages
If you need money quickly in Australia, you might have to choose between a personal loan and a mortgage to buy a home. Personal loans are flexible, don’t require collateral, and are perfect for things like weddings or paying off debt. They have rates between 4.99% and 35% with durations of 1 to 7 years. Mortgages, which are backed by property, have lower rates (3–5%) but longer durations (25–30 years), making them great for buying a home.
Main Differences
Here’s a short glance at how they compare:
| Factor | Personal Loan | Mortgage |
| Purpose | Versatile, for personal expenses | Specifically, for buying or refinancing homes |
| Security | Usually unsecured, no collateral needed | Secured by property, higher risk if default |
| Loan Amount | $1,000 to $100,000 | Often $200,000+, based on property value |
| Interest Rates | Higher, 4.99%-35% | Lower, 3%-5% variable, slightly higher fixed |
| Repayment Terms | Short, 1-7 years | Long, 25-30 years |
| Approval Process | Faster, simpler, funds in 24 hours | Slower, involves property checks, weeks long |
How to Get Approval
Faster, easier, money in 24 hours
Slower, takes weeks, and verifies property. Which one is right for you?
A personal loan is great if you need money quickly for a vacation or to pay off debt and don’t want to put your house at danger.
If you’re buying a property and can stomach a lengthier commitment with lower rates, go for a mortgage.
Mortgage rates are good right now because the RBA cash rate is 3.85% as of May 20, 2025, but personal loans are still a good option for short-term needs.
At Sri Finance, we guide you through these options, leveraging our expertise to match your needs with the best lender, ensuring you navigate Australia’s loan market smoothly.
Conclusion and Recommendations
Understanding personal loans vs mortgages is key for informed decisions. Research suggests personal loans fit short-term needs, while mortgages suit homeownership. It seems likely your financial goals and risk tolerance will guide your choice. Contact Sri Finance for personalised advice to secure the right loan in Australia.
