Funeral Loans In Melbourne Review 2022

Break Free Melbourne Home Loans are a leading mortgage broker with over 20 years of industry experience. We provide lending solutions and advice tailored to your needs. We work closely with clients as trusted advisors and are accessible to clients when needed.

Our brokers work hard at understanding our client’s unique circumstances and helping them overcome common home and car loan challenges. Whether you’re a first home buyer or an experienced investor, we’ll help you find the best home loan for your situation. Whether you’re self-employed and have trouble proving your income or you’re a contractor or casual worker, we offer solutions for all types of clients’ income sources.

Nothing is as unexpected as funeral costs. The financial stress of a funeral adds to this already difficult time for you and your loved ones. In the unexpected event of a death, Break Free Investment Property Loans can help you secure a reliable line of funeral finance. We’ll help you compare interest rates, repayment terms and other conditions to find the right lender with the best offer for your situation. This way, you can borrow at a low personal cost. For the best funeral loans Australia residents can depend on, consult our brokers at Break Free Home Loans today.

Everything You Need To Know About Funeral Loans

It’s difficult to plan for an unexpected funeral. In Australia, funerals can cost as much as $15,000 in expenses which can cause serious financial strain for some families. But don’t worry, funeral finance options exist in the form of funeral loans and other interest-free loans.

What Is It?

A funeral loan is a type of personal loan used for funeral expenses. Funerals can be expensive and you may not always be ready to provide the funds for one. A personal loan for funeral purposes will let you repay the borrowed amount over time. Funeral financing loans work the same way as any other personal loan. It has a fixed repayment term (usually monthly repayments), interest rates and fees.

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What Can You Use The Loan For?

There’s great flexibility when it comes to the use of loans for funeral expenses. You can use them to cover a range of costs from funeral director fees to paying for the graveside burial, chapel service and other expenses. Emergency funeral loans can account for any of the following costs:

  • Funeral director or celebrant fee
  • Transfer and storage of the deceased to/from funeral home
  • Embalming or mortuary care
  • Coffins
  • Cremation service or burial service
  • Newspaper obituary
  • Headstone and burial plot
  • Urn for cremation
  • Family car or transport for guests
  • Service booklets
  • Refreshments for the wake

Main Features

Like any personal loan, loans for funeral costs have a number of main features such as:

  • Interests and comparison rates: This is the fee you are charged for borrowing. But the comparison rate is the true cost of the loan. It’s important to take this into account when considering which loan to borrow from.
  • Loan term: Some loans offer terms up to 7 years. While a long term reduces monthly repayments, it’s important to consider how you will be paying more in interests and fees and this can significantly increase the total cost of the loan.
  • Monthly repayment: This determines the total cost and indicates the affordability of the loan. Consider whether the loan fits in your budget, and if you can make the monthly and total costs or you’ll be left out of pocket.
  • Fees: This may include ongoing administration fees, establishment fees or additional fees for late repayments and so on.
  • Fixed or variable interest rates: A fixed rate stays the same over the course of the loan period. A variable rate may change on a monthly basis depending on the market rate. Oftentimes, variable rate loans have more features, but it’s equally important to choose the type of interest that suits your financial needs.
  • Loan amounts: Lenders decide the minimum and maximum loan amounts. Secured loans often have a limit of $100,000 while unsecured loans are set at $50,000.
  • Loan features: These include useful features such as additional repayments or redraw facilities. You need to check if fees are charged for these however.
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What Do You Need To Apply

Depending on the type of funeral loan you’re applying for, you may be required to provide supporting documentation such as:

ID Verification

To verify your identification, you may be asked to provide your Australian passport/proof of citizenship or permanent residence, driver licence, health insurance or other documents that qualify as proof of identity.

Income Proof

Lenders will need proof of your income. This can be in the form of payslips, tax returns and more.


Permanent Employment

Lenders are interested in your on-going payments. They want to understand how you will manage your take-home pay to meet their repayment schedule. Proof of permanent employment can include anything from an employment verification letter to paystubs and other salary information, HR references, to contracts and other signed agreements.


Bank Statements

Lenders will generally need to verify the last two years of your bank statements to get an idea of your income and payments. They will assign a credit score to determine if you are eligible for a loan based on all the information you provide them.

How To Get Funeral Loans In Melbourne


When you are applying for a loan, you are taking on a debt. Consider what type of financing you need, how much you can borrow and what you can afford.


Compare lenders and loan products with a qualified mortgage broker. You need to compare interest rates, comparison rates, fees and various eligibility criteria. See which loan benefits you most and suits your financial circumstance.


Select a lender and complete your loan application. Our brokers at Break Free Home Purchase Assistance Scheme can connect you with a trusted lender and complete your loan application on your behalf.


Organise and prepare all your required documentation. This will help make credit checks easier and get your loan application approved faster.


If online convenience is important, consider lenders with an online funeral loan. For example, some payday loans or buy now, pay later finance options can be processed entirely online.

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How Much Does A Funeral Cost

Funerals can be expensive and there can be various costs to account for. In fact, a basic cremation can cost up to $4,000 while a traditional burial service can cost anywhere upwards of $15,000. You may have to pay for funeral director fees, a chapel service, a graveside burial, mortuary care expenses, coffins and other costs.

Types of Funeral Finance

There are different types of funeral loans Australian lenders offer, these can include:

Tips Before Applying For A Loan

When it comes to funeral costs, there are a few things you can do to make the most out of your financial circumstances. You can:
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Personal Loans

There are two categories of personal loans for funerals, secured or unsecured. Secured loans require an asset as security for the loan and unsecured loans do not. Secured loans have a borrowing limit up to $100,000 while you can only borrow up to $50,000 with an unsecured loan.

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Bad Credit

While not ideal, it’s possible to apply for funeral loans with bad credit. Some non-bank lenders specifically offer bad credit financing which allows you to secure a loan regardless of your credit score. This is classified as risk-based financing. Bad credit funeral loans may offer more flexible lending criteria, but these loans generally cost more. This is because your interest rate is personalised according to your credit score and bad credit borrowers are expected to pay more.

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Low Interest Loans

If you have a low income, you may be eligible for low interest loans. These loans generally come with shorter repayment terms and a fixed interest rate in order to cap your repayment amounts. This way, you can borrow at a low cost and cover your expenses efficiently.

Find Other Ways To Pay For The Funeral

Are there other funds available? Do you have another alternative to pay for the funeral? This could be your savings account, a term deposit, funds from the deceased’s super, funeral insurance and funeral bonds. You may even be eligible for bereavement payments if the deceased received Centrelink benefits or assistance from the Department of Veterans Affairs if they had a DVA pension. You can also apply for state government funding or get help from a third-party insurance to cover some expenses if eligible. These options will usually be more cost-effective than taking out a loan.

Try To Cut Down Your Expenses

Loans need to be paid back with interest and fees, and that’s a lot more money in the long term. If you can arrange a cheaper funeral, you may be able to afford all your expenses without external finance. See if you can cut down on some expenses. Look into flowers or any extras funeral homes provide or opt for a simpler, smaller attendance or even an unattended funeral. It’s also worthwhile to choose cremation or simple burial rather than an elaborate memorial service.

Compare Smart & Choose The Cheapest Variant

Ask yourself, is your choice the cheapest option available? You need to take out the best funeral loan for your situation. It’s why it’s important to compare loans to find the one that fits your budget and benefits you most.

How Do We Rate Lenders For Funeral Loans

There are dozens of different options for funeral burial loans available. Comparing funeral loans can help you find a loan you can afford. The following are factors you need to keep in mind for your comparison:

Interests & Rates

The higher your interest rate, the higher your repayments. You also need to select between a variable or fixed interest rate loan. Fixed rates are normally slightly higher but offer consumers greater certainty. While variable rate loans may provide more features but be more expensive and prone to fluctuation.

Repayment Time

Consider how long you need to repay the loan. Generally, aiming to pay off your loan as soon as possible is practical to avoid paying interest in the long term. But shorter loan terms also mean higher repayments. It’s important to plan ahead so you are confident you can meet your loan obligations.

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This can include establishment fees, or penalty fees for late payments and other administration fees.

Monthly Cost

When you’ve calculated the interest and comparison rates, you can work out your monthly cost. This gives you a clearer indication of the affordability of the loan.


Can you comfortably afford the loan? Does it sit within your budget? If it looks like you’ll have problems making your repayments or if you’re likely to be left out of pocket, you need to reconsider.

Loan Amounts

Lenders set fixed borrowing limits for different types of loans. You need to check if the amount you need is within the range offered by your preferred lender.
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Compare Loans for Funeral Expenses From The Best Lenders In Melbourne

Break Free Home and SMSF Loans works with a range of different banks, financial institutions and private lenders. We help our clients find the best funeral loans in Australia to suit their financial position. Work with us today. We can help you compare funeral loans, calculate comparisons and complete your application on your behalf.

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Have Any Questions? Talk To Us!

We help grieving families find the best funeral loans Australia has to offer to ease this difficult time. Our brokers are experienced in navigating the challenges of emergency funeral loans. We can help you build a strong case for your loan application. If you’d like a stress-free and successful application process that lets you secure reliable financing quickly, consult our brokers today.

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Frequently Asked Questions

The following are some of our most frequently asked questions.

Can I Get A Funeral Loan In Melbourne?

Yes, you can. There are many lenders who offer funeral loans, low interest loans and even interest-free options to cover your expenses. Some lenders even offer bad credit financing for funerals as well. This allows you to obtain the loan regardless of your credit score. However, since this is risk-based financing, the loan will be more expensive as it uses personalised rates.

What Do I Need To Apply For A Funeral Loan?

To apply for a funeral loan, you need to be over 18 and an Australian citizen or permanent resident. You will need to show a combination of the following verification documents:

  • Proof of identity
  • Proof of income and employment
  • Bank statements
  • Details of any assets and liabilities

This way lenders can assess your financial position and credit score.

How To Get A Funeral Loan In Melbourne?

Consulting qualified brokers will help you compare lenders. Break Free Home Loans can help you compare interest rates, comparison rates, repayment terms and other conditions of loan products from different lenders. Find the best possible deal for a funeral loan in Melbourne with our experienced brokers.

Contact our team

We love to hear from each and every one of you. Please feel free to reach out to us today!