Dental work has an awkward habit of being both expensive and not optional. Implants, crowns, a full treatment plan after years of putting it off, or braces and Invisalign for a teenager. The costs are real and health funds rarely cover much of them.
There are four common ways people pay, and they suit quite different situations. Worth understanding the differences before you sign anything at reception.
The four options
The practice's own payment plan. Many dental and orthodontic practices offer staged payments across the course of treatment, particularly for orthodontics, which runs over a long period anyway. Where this is available and genuinely interest free, it is very often the cheapest option, because you are paying the practice directly rather than a finance provider.
A third party dental payment plan or buy now pay later. Offered through the practice but provided by a finance company. Convenient, but the cost is in the fees rather than an interest rate, and the arrangement appears on your credit file.
A personal loan. Fixed amount, fixed term, fixed repayment, arranged before treatment starts. Suits larger treatment plans, work spread across multiple practices or specialists, or cases where the practice cannot offer terms that fit.
Health fund benefits, which reduce what you need to fund rather than funding it. Annual limits, waiting periods and item-by-item coverage vary, so it is worth checking exactly what applies before assuming.
Start by asking the practice
This is the practical advice most finance pages will not give you: ask the practice first.
Many will stage payments across treatment, some will hold off starting the more expensive stages until you are ready, and orthodontic practices in particular are set up for payments spread over the treatment period because that is how the treatment works. If that covers you, you do not need finance at all.
It is also worth asking whether the quoted plan is genuinely interest free or whether a third party provider sits behind it, because those are different things with different costs.
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Braces and Invisalign
Orthodontic treatment usually runs over a year or two, which changes the shape of the problem. Payment is commonly staged across that period, which is why practice plans are so common in orthodontics and why they often work well.
A personal loan tends to suit where the practice wants a larger upfront amount, where you are treating more than one family member at once, or where the total across a family makes staged payments through the practice impractical.
The trap worth avoiding is a loan term that outlasts the treatment by years. If the braces come off in two years and the loan runs for five, the arrangement has stopped matching what you bought.
What buy now pay later actually costs
The cost sits in account and instalment fees rather than an interest rate, which makes it harder to compare against a loan. Two points people miss.
It is credit, so it appears on your credit file and any limit counts against you when you next apply for something, including a home loan.
And several arrangements running at once is where it goes wrong. If that has already happened, our guide to debt consolidation covers rolling them into one structured repayment.
Compare anything you are offered on its comparison rate where one is quoted, because on this kind of credit fees often matter more than the headline rate.
When a personal loan suits
The treatment plan is large, such as implants, full-mouth rehabilitation or major restorative work.
It spans several providers, where a general dentist, a specialist and a laboratory are all involved and no single practice plan covers the lot.
The practice cannot offer terms that fit, or wants a substantial amount before starting.
You want it finished and paid off, with a known end date rather than an open account.
Dental finance is unsecured, since there is no asset to secure against. If you have a vehicle or another asset, a secured loan is generally priced lower and worth asking about. Our personal loans page covers both.
Dental holidays and treatment overseas
Going overseas for dental work is common enough that it deserves an honest mention. Bali, Thailand and Turkey are the usual destinations, and the headline saving on major work can be substantial.
From a finance point of view the situation is different in one important way: there is no practice payment plan. You are paying a clinic overseas, usually before or at the time of treatment, so the options are your own money or a personal loan arranged here before you go. That also means the whole amount, including flights and accommodation, is funded upfront rather than staged across treatment.
Some things worth weighing that have nothing to do with the finance and everything to do with the total cost:
Remedial work is the real risk. If something needs correcting after you come home, you are paying an Australian practice to do it at Australian prices, and many will not warranty or adjust another clinic's work. Budget for that possibility rather than assuming the quoted saving is the final number.
Complex work needs follow-up. Implants and full-mouth work involve stages over months, which is difficult to manage from another country and sometimes means a second trip.
Travel insurance generally excludes planned medical and dental treatment. Cover for the holiday does not usually extend to the procedure or its complications. Check the policy wording rather than assuming.
Compare like with like. A local quote for the same treatment plan, against the overseas quote plus flights, accommodation, time off work and a realistic allowance for follow-up. Sometimes the saving survives that comparison comfortably. Sometimes it does not.
If you do fund it with a loan, our guide to travel loans covers the travel side and the same principle applies: borrow for the defined cost, not an open-ended amount.
If the treatment is urgent and money is tight
Worth saying plainly. If you need treatment you cannot fund and borrowing would leave you worse off, talk to the practice about staging the essential work first, ask whether a public dental service is available to you, and check your health fund's limits before committing to anything. Borrowing is one option among several and it is not always the right one.
What lenders assess
- Income and employment, and whether the repayment fits alongside existing commitments
- Your credit file, including recent applications and any buy now pay later arrangements
- Existing limits, which count whether used or not
Where a broker fits
The useful question is whether you need finance at all, and if you do, whether a loan beats what the practice is offering once the fees are counted. Sometimes the practice plan wins and we will say so. Our personal loans page sets out what we arrange, Australia-wide.
This article is general information only and is not financial or health advice. It does not take account of your objectives, financial situation or needs. Treatment decisions are a matter for you and your practitioner.
Damo Treadgold is the director of Treadgold Finance, an FBAA-accredited finance broker on the Sunshine Coast, arranging personal, car, boat and equipment finance Australia-wide.
Frequently Asked Questions
Can I get a personal loan for dental treatment?
Yes. Dental finance is unsecured, since there is no asset to secure against. If you have a vehicle or another asset, a secured loan is generally priced lower and worth asking about.
Is the practice payment plan cheaper than a loan?
Often, particularly where it is genuinely interest free and provided by the practice rather than a third party finance company. Ask which it is, because they cost differently.
How do people usually pay for braces or Invisalign?
Commonly through staged payments across the treatment period, which is how orthodontic practices tend to be set up. A loan suits where a larger upfront amount is required, where more than one family member is being treated, or where the practice cannot offer workable terms.
Does buy now pay later for dental affect my credit file?
Yes. It is credit, so it appears on your file and any limit counts against you when you next apply for something, including a home loan. Several arrangements running at once affects what you can borrow.
What if I cannot afford treatment I need?
Talk to the practice about staging the essential work first, ask whether a public dental service is available to you, and check your health fund limits. Borrowing is one option among several and not always the right one.
How long should the loan term be?
Ideally not much longer than the treatment itself. A five year loan for treatment that finishes in two has stopped matching what you bought.
