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For many Australians, getting married is one of life’s seminal moments—up there with buying a home or graduating from university. According to the Australian Bureau of Statistics’ (ABS) most recent figures, a record number of marriages were registered in 2022, following two years of fewer nuptials during the Covid-19 pandemic.
Yet weddings are notoriously expensive affairs. According to Moneysmart, the average Australian wedding costs $36,000 and 82% of couples dipped into their savings to pay for their wedding. Furthermore, some 60% of surveyed couples took out a loan while and 18% used their credit card.
If your savings won’t cover the full cost of the wedding, then you may be considering taking out a personal loan. While there is no such as thing as a designated “wedding loans” as such, couples will often use unsecured personal loans to help pay for the nuptials.
Let’s take a closer look at how this works.
Related: Guide To Personal Loans In Australia
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How Much Does a Wedding Cost In Australia?
The cost of a wedding will vary among couples but in the current economic climate, many are trying to cut costs. A Wedshed survey of more than 2,500 newlyweds-to-be found 86% of couples have decided to spend less on their wedding than they initially planned, opting for more intimate ceremonies that include only their immediate family.
Eloping is also increasing as a trend, both in Australia and abroad, but even an elopement still comes at a cost. Celebrant Keyorra Shrimpton told Forbes Advisor Australia that a wedding celebrant could set you back up to $1,800 alone.
For those throwing a traditional celebration with a large party, the average Australian wedding costs approximately $40,000 according to data from the Australian Bridal Industry Academy (ABIA). The cost varies greatly depending on which state you get married in, the type of celebration you wish to have, and, of course, how many guests you invite.
Some of the biggest costs include hiring a venue, organising catering for food and alcohol, wedding attire and accessories, rings, a marriage officiant, photography, entertainment, and flowers.
As you can see, it’s easy for these costs to add up and if you don’t want to cut corners, but don’t have the funds to cover the big day, a wedding loan may come in handy. Just make sure you can make your repayments, including any interest, in the coming years.
What’s a Wedding Loan?
A wedding loan is another type of personal loan, with the money granted to applicants for their special day. As with all loans, the interest and conditions will depend on the financial institution, how much money you need for the loan, and a variety of other factors.
Eloping is also increasing as a trend, both in Australia and abroad, but even an elopement still comes at a cost. Celebrant Keyorra Shrimpton told Forbes Advisor Australia that a wedding celebrant could set you back up to $1,800 alone.
The table below demonstrates a handful of reputable Australian companies offering wedding loans to their customers, including the interest rates, loan limits and terms.
There are many other factors to consider when applying for a loan, as well. This includes:
- If the loan is fixed or variable;
- Whether the loan is secured or unsecured;
- The loan approval fee;
- Any loan administration charges that may exist;
- Late payment fees;
- Your credit score (as it will affect your interest rate);
- Whether you meet the minimum income requirements for the specific loan;
- Regularity of repayments; and
- If additional repayments are allowed to pay off the loan earlier.
Once you establish these conditions, you can compare a few different personal loans on the market and find which would suit you best for your wedding loan. You can read more in our guide to Our Pick Of The Best Personal Loans for Australians.
Five Top Personal Loans To Consider
Below are some of our top picks of providers of unsecured personal loans. You will see that most of these are non-bank lenders because their lowest starting interest rate tends to be more competitive. For example, Westpac unsecured loans range from 7.99% p.a. to 20.49%, while ANZ ranges from 7.49% p.a. to 19.99% p.a
Note: The below list represents a selection of our top category picks, as chosen by Forbes Advisor Australia’s editors and journalists. The information provided is purely factual and is not intended to imply any recommendation, opinion, or advice about a financial product. Not every product or provider in the marketplace has been reviewed, and the list below is not intended to be exhaustive nor replace your own research or independent financial advice. For more information on how Forbes Advisor ranks and reviews products, including how we identified our top category picks, read the methodology selection below.
Note: as we have not ranked each provider, lenders are listed below in order from the lowest starting interest rate to the highest. If two lenders offer the same starting rate, they are ordered alphabetically.
Harmoney Fixed Rate Personal Loan
Interest rate
Fixed rate of between 5.76% to 24.03%
Loan amount
$2,000 to $70,000.
Fees
Establishment fee of $275 for loans under $5,000, and $575 for loans over $5,000.
Interest rate
Fixed rate of between 5.76% to 24.03%
Loan amount
$2,000 to $70,000.
Fees
Establishment fee of $275 for loans under $5,000, and $575 for loans over $5,000.
Provided you’ve got good credit and can get financed at the low end of Harmoney’s fixed interest-rate range, you could lock-in one of the lowest rates around and pay no fees apart from the establishment fee. These fees nudge the comparison rate up to 6.55%, which is still competitive.
There are no monthly account-fees or early repayment fees, however, there is a dishonour fee of $15 if your repayment doesn’t go through.
Weekly, fortnightly or monthly repayment options. Loan terms of three, five or seven years.
OurMoneyMarket Unsecured Fixed Rate Personal Loan
Interest rate
Fixed rate from 6.57% to 18.99%
Loan amount
$5,000 to $75,000.
Fees
Establishment fee is between 1.50% to 6% based on loan amount
Interest rate
Fixed rate from 6.57% to 18.99%
Loan amount
$5,000 to $75,000.
Fees
Establishment fee is between 1.50% to 6% based on loan amount
OMM’s personal loan offers good value if you have an above-average credit score and can snag an interest rate on the lower end of its range. An efficient online application process means you can access funds fast.
Minimal fees—provided you stay on top of repayments—also makes this an attractive option. There is an establishment fee calculated as a percentage of your loan amount—between 1.50% to 6% with a minimum of $250. There are no account fees or early repayment fees, but there is a late repayment fee of $35 and a payment dishonour fee of $25.
Weekly, fortnightly or monthly repayment options. Loan terms of one to seven years.
Plenti Fixed Rate Unsecured Personal Loan
Interest rate
Fixed rate of between 6.57% to 24.09%
Loan amount
$5,000 to $50,000
Fees
Undisclosed one-off fee at application
Interest rate
Fixed rate of between 6.57% to 24.09%
Loan amount
$5,000 to $50,000
Fees
Undisclosed one-off fee at application
Based on its customer reviews, Plenti is a well-regarded lender, with a decent interest rate for people with a healthy credit score. The lender has a low salary threshold for people looking to apply for a personal loan—you need to be able to show you earn at least $25,000 annually and this includes self-employed people, provided you’ve been working for yourself for at least 12 months.
An undisclosed one-off fee applies at application, but there are no monthly fees or early repayment fees, and borrowers can make extra repayments or pay off the loan early without penalty.
Weekly or fortnightly repayment schedule. Ability to make extra repayments. Loan term of between one to seven years.
ING Fixed Rate Personal Loan (Unsecured)
Interest rate
Fixed rate of between 6.89% to 18.99%
Loan amount
$5,000 to $60,000
Fees
Establishment fee of $150
Interest rate
Fixed rate of between 6.89% to 18.99%
Loan amount
$5,000 to $60,000
Fees
Establishment fee of $150
A decent interest rate range from a well-liked, well-known bank makes this product one to consider. It’s cost-effective if you want certainty about repayments yet the flexibility to add extra cash and potentially pay off the loan early without any charge. To be eligible, ING requires you earn at least $36,000 a year (before tax). Note, this loan isn’t available to those who are self-employed.
There is an establishment fee of $150 and a late payment fee of $20, but no monthly account fees.
Ability to make extra repayments. Loan term of between two to seven years.
NAB Variable Rate Personal Loan (Unsecured)
Interest rate
Variable rate of 8.49% to 20.49%
Loan amount
$5,000 to $55,000
Fees
Application fee of $150
Interest rate
Variable rate of 8.49% to 20.49%
Loan amount
$5,000 to $55,000
Fees
Application fee of $150
It’s not the cheapest loan on offer, but NAB’s variable rate personal loans comes with the assurance of a major bank’s backing. With the variable rate option, you can get ahead on your repayments, and then redraw extra cash as needed. The fees are minimal, plus there’s no penalty for paying off the loan sooner.
Loan term of one to seven years. Weekly, fortnightly or monthly repayments. Redraw is available.
What Can A Wedding Loan Cover?
You may think a wedding loan is limited to costs associated with the big day, but most financial institutions will also let you take out a wedding loan for a range of other associated costs.
A wedding loan can cover:
- Venue hire;
- Entertainment;
- Photography and videography;
- Celebrant fees;
- Catering;
- Flowers and decorations;
- Wedding planner fees;
- Accommodation;
- Transport;
- The engagement ring;
- Additional wedding celebrations, such as an engagement party;
- The wedding dress;
- Additional wardrobe attire;
- The honeymoon;
- Unforeseen expenses;
How To Afford A Wedding Without a Loan
It’s not imperative that you take out a loan from a bank in order to afford a wedding. There are many ways to cut down on costs, whether that means not having an open bar or choosing to host an intimate ceremony instead, sticking to a budget and saving over the long-term or choosing recycled or second-hand options.
Budget and Save
If money is tight, but you’re determined to fund your wedding upfront, you may choose to set a budget with your partner and then calculate how much money you would need to save each month (or year) in order to reach your financial goal. You may consider putting money into a high-interest savings account or a term deposit in order to reach your goal sooner.
There are even budgeting apps available specifically for weddings, such as ‘Let’s Predict It’. The app allows for couples to place all their wedding cost expectations into the app, which will then calculate the total spend. As time goes on and the date gets closer, the app will track transactions made and help couples see whether they are over or under budget.
The ABIA gathered insights from 5,000 Australian married couples who celebrated their nuptials recently, and found that the initial wedding cost that couples anticipated was around $33,000. With the average (and actual) cost then coming out at $40,000, that’s an increase of 18% more than the intended plan—highlighting the importance of setting a budget and sticking to it, as well as factoring in wriggle room for cost increases.
Alternatively, you could choose to put some costs on your credit card. As a credit card is still technically a loan, since you are borrowing ‘credit’ from the bank, you need to be able to ensure you can pay back the minimum monthly repayments to avoid risking credit card debt.
Related: The Ultimate Guide To Budgeting For Australians
Something Old, Something New
Another way to save money is to repurpose old heirlooms, such as dresses or rings, in order to cut down your costs.
At jewellers White November, the average cost of a new engagement ring is approximately $7,000 to $8,000, owner and creative director Bianca Librandi tells Forbes Advisor Australia, while each wedding ring is usually $2,500.
Whereas, for the remodelling of an heirloom or old jewellery, this cost can lower to $4,000 all up—saving approximately 50% on engagement rings and even more for the wedding rings.
“Remodelling has been very popular and a great way to bring new life and meaning to unworn jewellery or heirlooms while being sustainable and cost effective,” Librandi says.
It’s a trend that has gained momentum since Covid-19, she explains, and one that shows “no sign of stopping” as Australians continue to grapple with achieving their dream wedding day in the midst of a cost-of-living crisis.
Further, at White November, they take a 50% deposit upfront and then allow for weekly or fortnightly instalment payments for the remaining balance.
Devami head florist, stylist and founder, Tanya Bensley, says she has a similar system in place: there is an initial booking fee (when booking flowers) and then the couple can choose the frequency of their payments between the booking and their wedding date.
Choosing companies that offer similar payment instalment options, whether it’s for your jewellery, flowers or entertainment, can make affording a wedding a lot easier.
Post-Marriage Costs To Consider
It’s not just your big day that’s going to cost you money, either. There are costs associated with the marriage itself, considering it is a legal agreement. This means you’ll need to review and update legal and financial documents, some of which may incur a charge.
These include updating:
- Your insurance policies, particularly life insurance;
- Your superannuation, and checking if combining super would be more beneficial;
- The ATO, if you take your spouse’s surname;
- Your passport, bank accounts, bill details and more.
Bottom Line
Ultimately, getting married isn’t cheap. From the engagement ring to the documentation updates and the big day in between, the costs can add-up quickly if you don’t plan and budget correctly.
Taking out a wedding loan may be a suitable option for you and your partner in order to achieve your dream day. However, it’s important to ensure you can pay back the loan in the reasonable timeframe to avoid any further interest charges.
Related: Our Pick Of The Best Personal Loans For Australians
Frequently Asked Questions (FAQs)
Can you borrow money from the bank for a wedding?
Yes, you can. While there are no dedicated wedding loans as such, many Australians use an unsecured personal loan to fund their big day. You can read more in our guide to the best personal loans. Just make sure you don’t borrow more than you can afford to pay back with interest.
Should you take out a loan to afford a wedding?
Whether or not you should take out a loan for your wedding is completely dependent on you and your partner’s financial situation and desires for your special day. However, with all loans, it is imperative that you establish how much your repayments will be each week, fortnight or month for the length of your loan term, and ensure that you will be able to meet these repayments—especially if something goes wrong, such as you or your partner losing your job.
What’s the most expensive part of a wedding?
Typically, the most expensive part of a wedding is the venue hire. This may also include catering and entertainment, depending on your wedding package.
How can I save money on my wedding?
Australians can save money on their weddings by choosing to have more intimate celebrations; repurposing heirlooms from the family rather than buying everything new; choosing to go DIY with the decorations at the event; and by doing research on the costs that will be applicable to their special day to understand where money could be saved.
Can I finance a wedding?
With the average cost of a wedding at $36,000 in Australia, it’s little wonder that many couples turn to financing to pay for the big day. Some couples set up term deposits or high interest savings accounts, while others opt for unsecured personal loans. These loans allow couples to pay off the loan, plus interest, within a set time-frame—usually seven years. While some some couples put their wedding on their credit card, make sure you’re able to pay this amount off otherwise you may risk falling further into debt.
