Loansmart

Loansmart debt consolidation eligibility and documents

You must be 18 or older and living in New Zealand. Loansmart says visa holders may be considered, but the loan term cannot extend beyond their visa expiry. Approval depends on the selected lender’s criteria and sufficient income after expenses.

• Identity: A valid driver licence or passport, plus residency or visa details where relevant.
• Income and spending: Usually three months of bank statements. Loansmart also asks about expected changes to income and expenses.
• Existing debts: Balances, repayments and settlement letters showing amounts, payment details and valid settlement dates.
• Credit and security: Consent to credit checks and, for secured borrowing, information about the proposed asset and existing finance.

Past defaults do not automatically rule out consideration. Loansmart’s FAQ highlights current repayments being up to date and satisfactory bank-account conduct. Security may be requested, but offering an asset does not establish affordability.

Who should consider Loansmart?

Loansmart may suit someone with several expensive debts who wants a consultant to assess options across a lender panel. Its value depends on whether the resulting offer improves your repayment position after all fees and remaining interest.

Compare the new loan against what you would still pay under your existing arrangements. A debt with only a few payments remaining may become more expensive if refinanced over several years. Likewise, moving an interest-free balance into an interest-bearing loan needs a clear justification.

Compare other debt consolidation options and a direct lender’s personal loan offer for the same amount and term. If essentials already exceed your income, explore debt management support before taking further credit.

How Loansmart debt consolidation works

Application and settlement

1. Complete the official application or call Loansmart. A consultant reviews your circumstances and requests supporting information.
2. Review available lender options, including the lender’s identity, fees, security requirements and repayment schedule.
3. Confirm which debts will be settled, approve the payment instructions and sign the documents electronically if you accept.

Confirm who pays your creditors. The debt consolidation page describes direct settlement; the general FAQ also allows funds to be paid to you to settle debts yourself. It requires direct payment where an existing lender holds security over an asset needed for the new loan. Obtain written instructions and settlement confirmations before changing existing payments.

Loansmart’s privacy policy permits information sharing with lenders, insurers, service providers and other specified recipients. Ask which lenders will receive your application and what credit enquiries will be recorded.

Approval and payout timing

Loansmart advertises possible approval within one to two hours and same-day funding when the required information is supplied in time. These timings depend on checks, lender approval, signed documents and banking arrangements. Allow for creditor settlement processing as well.

Questions to ask before signing

• What are the total remaining repayments on my current debts compared with the complete cost of this offer?
• What is the final Loansmart fee, including any applicable GST, and which lender or settlement charges are additional?
• Does the lower repayment depend on extending my debt-free date?
• Which accounts will be settled, and who must close or reduce any revolving credit facilities?
• What asset is at risk, what insurance is required, and what happens if I miss payments?
• What charges apply to extra payments, early settlement or cancellation?

Loansmart advantages and limitations

• Access to several lenders: One consultant can assess options within Loansmart’s panel, although this is not a whole-market comparison.
• Application support: Online document handling and assistance with creditor settlement can reduce administration.
• Separate broker cost: Loansmart’s fee sits alongside lender charges and can absorb potential savings, particularly on smaller balances.
• Commercial incentives: Its disclosure says it may receive lender, insurance and referral commissions. Ask why the recommended offer suits your circumstances.
• Security risk: Replacing unsecured debts with secured borrowing exposes the nominated asset to enforcement if repayments fail.

Loansmart interest rates, fees and total repayment

The advertised 9.95%–32.50% annual interest range is personalised by the lender. The starting rate is not an approval indication, and interest alone does not describe the full borrowing cost.

The published service fee is up to 5% of the loan amount plus $245, capped at $995 unsecured or $1,995 secured, GST-exclusive. It applies when you enter an arranged loan and can be paid upfront or financed. Request the final dollar charge and applicable GST treatment in writing.

Check the selected lender’s establishment, administration, default and early-repayment charges, plus any cost of settling your existing debts. Financed fees increase the balance on which interest is charged. Loansmart’s calculator uses an editable example fee; its default is not the confirmed fee schedule.

Loansmart’s published repayment example

Loansmart publishes a $10,000 loan over 60 months at 14.95% p.a., with a $215 lender establishment fee and $745 Loansmart fee. It states repayments of $59.91 weekly, a total payable of $15,576.98 and an APR of 19.33%.

For budgeting, our calculation converts $59.91 weekly to approximately $259.61 per average month, using 52 weeks divided by 12; this is not a monthly repayment quote. Multiplying the rounded weekly amount by 260 produces $15,576.60, which is $0.38 below the published total. The example does not explain that difference or itemise insurance and GST treatment. Obtain the exact payment schedule and complete cost disclosure for your offer.

Optional insurance and secured-loan conditions

Loansmart describes its credit insurance as optional. Premiums can be financed, increasing the interest-bearing balance. Its CreditCare summary identifies exclusions for specified pre-existing conditions and arrears arising before an insured event, alongside waiting periods and claim limits. Check the policy wording against your employment and health circumstances.

Separately, Loansmart requires proof of insurance for property offered as security. Confirm any insurance requirements for a vehicle or other asset with the selected lender.

Is Loansmart worth considering for debt consolidation?

Loansmart’s strongest feature is consultant-led access to several lenders, with help arranging repayment of existing debts. Its main limitation is the additional broker fee and the uncertainty of lender-specific pricing until assessment.

Our assessment: consider it where the written offer provides a demonstrable cost saving or a necessary, sustainable improvement in affordability. Compare total remaining cost, repayment size and debt-free date. A smaller instalment alone is insufficient evidence of a better deal.

Loansmart debt consolidation FAQs

How does using Loansmart compare with applying directly to a bank?

Loansmart is a personal-loan broker that arranges finance through selected providers. A consultant can assess options within that panel, but this does not cover the whole market. Its disclosure statement explains that it may receive lender commissions as well as charging you a service fee. Compare the recommended offer with a direct lender’s quote using the same debt settlement amount and repayment term, including all charges.

Which debts can Loansmart consolidate, and who pays the creditors?

Loansmart lists credit cards, personal and car loans, hire purchase, store cards, buy-now-pay-later balances, overdue bills and fines. Its consolidation page describes direct creditor payments, while its general FAQ also allows payment to you to settle debts yourself. Confirm the arrangement for each account, including settlement amounts and release of existing security. Ask whether interest-free balances or loans close to being repaid can remain outside the consolidation: moving them into a longer interest-bearing loan could increase their cost.

Can I consolidate without security, and when should I question a secured offer?

Loansmart advertises up to $75,000 unsecured, subject to assessment, with larger secured loans potentially available. Security may also be requested because of your circumstances rather than the amount alone. If offered a secured loan, ask whether an unsecured alternative is available and compare the complete costs. A lower rate must be weighed against the risk to your vehicle or property. Loansmart also requires property used as security to be insured, which belongs in the affordability comparison.

Can Loansmart help after another lender has declined my consolidation application?

Another lender’s decline does not establish whether Loansmart’s panel can help. Loansmart says some applicants with past defaults may be considered, particularly where current repayments are up to date and bank statements show satisfactory conduct. Ask what would make the proposed application different: another lender’s criteria, a smaller amount, additional security or changed circumstances. Before proceeding, confirm which providers will receive your details and what credit enquiries may be recorded. Broader access does not establish that the resulting loan will be affordable or cheaper.

How much does Loansmart’s broker fee add to a consolidation loan?

Applying is free, but entering an arranged loan attracts a service fee of up to 5% of the loan amount plus $245, capped at $995 unsecured or $1,995 secured, GST-exclusive. Lender charges are additional. Under that formula, a $10,000 unsecured loan could carry a Loansmart fee of up to $745 before any applicable GST. Request the final charge in writing. If financed, the fee also attracts interest, so compare the total repayment with fees included. See the published fee schedule.

Does Loansmart’s starting rate mean it will be cheaper than my existing debts?

No. The advertised range is 9.95%–32.50% p.a., and the selected lender sets your personalised rate. The starting rate excludes the effect of fees and is not a prediction of your offer. Ask for a comparison showing your current debts’ remaining repayments and payoff dates against the new loan’s complete schedule. Where affordable, also request an option that keeps your existing debt-free date. This reveals whether the proposed saving comes from lower borrowing costs or mainly from spreading repayment over longer.

Can I make extra payments or repay early without charges?

That depends on the lender named in your agreement. Loansmart’s calculator assumes no early-repayment charges when illustrating extra payments, but its disclosures say actual conditions vary by lender. Ask about lump-sum payments, full settlement charges and whether extra payments shorten the term or alter scheduled instalments. If you expect a bonus or other lump sum, these terms can change which offer costs less. Also obtain settlement figures for your existing loans, since exiting them may involve charges.

Should I apply for consolidation if I am already missing repayments?

Missed payments make the underlying budget especially important. Loansmart’s willingness to consider an application does not establish that refinancing resolves the shortfall. Before accepting, ask the proposed lender to explain how the repayment fits your verified income, essential spending and debts that will remain. Contact existing creditors about available assistance and consider free, confidential financial mentoring through MoneyTalks on 0800 345 123. If an existing Loansmart-arranged loan becomes difficult to repay, contact the lender named in the agreement promptly.

Who handles problems with a Loansmart-arranged loan: the broker or the lender?

For concerns about Loansmart’s recommendation, service fee or application handling, contact Loansmart on 0800 255 155, weekdays 8am–5pm, or enquiries@loansmart.co.nz. Its published address is Level 18, 55 Shortland Street, Auckland 1010. For repayment assistance or disputed lender charges, contact the lender identified in your contract.

The complaint routes may differ. Loansmart’s disclosure directs unresolved complaints about its service to Financial Services Complaints Limited on 0800 347 257. Check your lender’s disclosure for its own dispute-resolution scheme.