Quick answer: You can potentially have more than one personal loan, but the lender assesses the repayments on all existing debts. Before taking a second loan, compare whether refinancing or increasing/replacing the existing loan gives a better rate, fees, term and total cost.
The real versions of the question were closer to:
- “I still owe $13k. Is it better to refinance the whole thing and add the new amount or open a second loan?”
- “We already have two personal loans — should we merge them into the mortgage?”
- “I inherited cash. Should I pay out both variable personal loans or keep savings?”
The three structures are different
Second loan
Old loan stays unchanged. New lender assesses both repayments.
Refinance/consolidate
New loan pays out the old balance and replaces it.
Existing-lender increase/top-up
Some lenders may allow a new application that increases or replaces the existing facility.
Do not optimise for “one repayment” alone
Compare:
- new interest rate;
- old payout fee;
- new establishment fee;
- remaining old term;
- new term;
- total repayments.
A refinance can halve monthly payments simply by restarting the debt over seven years.
That can still cost more overall.
Existing car-purpose personal loan
If the new borrowing is for another vehicle, consider whether a secured car loan is more appropriate than stacking unsecured debt.
Mortgage consolidation
A mortgage rate can be much lower, but moving a personal loan into a 25–30 year mortgage can increase total interest unless the debt is repaid on the shorter original schedule.
General information only. Approval, pricing, fees and eligibility depend on the lender, borrower circumstances and contract.
Frequently asked questions
Can I have two personal loans?
Potentially, but both commitments are included in affordability assessment.
Is refinancing better than a second loan?
It can be if rate/fees/term improve; compare total cost.
Can I add to my current personal loan?
Some lenders may offer a top-up/replacement process; policy varies.
Should I roll the loan into my mortgage?
It may reduce rate, but keep the personal-loan portion on a short repayment schedule to avoid paying it over decades.
Will refinancing create a credit enquiry?
A formal application for the new loan can create an enquiry.
Sources and verification
Related GPS Finance resources
Want to compare a personal-loan option?
Start with the amount and purpose. We’ll review likely lender fit before you decide whether to formally apply.
