Simplify repayments
Debt Consolidation Home Loans
Debt consolidation means refinancing your home loan to pay out dearer debts — credit cards, personal loans, car finance — so you have one repayment at a much lower rate. Done well it frees up serious monthly cash flow. Done carelessly it stretches short-term debt over 30 years. We show you both numbers.
How consolidation actually works
Your home loan is increased (or refinanced to a new lender) by enough to pay out the other debts at settlement. Card rates of 20%+ and personal loans at 8–15% become home-loan-rate debt, and five payment dates become one.
The catch: a $20,000 card debt cleared over 3 years costs less in total interest than the same debt spread over a 30-year mortgage — even at a lower rate. So we structure the consolidated portion to be paid down fast, often as a separate split with its own shorter term.
When it makes sense — and when it doesn't
It makes sense when repayments are eating your month, when missed payments are risking your credit file, or when one clean structure lets you actually get ahead. Equity and serviceability need to support the new loan.
It does not make sense if spending will refill the cards, or if the fees and rate on the new loan outweigh the saving. If you are in genuine hardship, a hardship arrangement or financial counselling may serve you better than new debt — we will say so.
What we check before recommending it
Current property value and equity, payout figures on every debt, your credit file, and the total-cost comparison over both the short and full term. You see the monthly cash-flow change and the lifetime interest change side by side before deciding.
FAQ
Debt Consolidation Home Loans — common questions
What debts can I consolidate into my home loan?
Commonly credit cards, personal loans, car loans and ATO or buy-now-pay-later balances, subject to lender policy. Some lenders cap the number of debts or require an explanation letter — we handle that packaging.
How much could consolidation save me each month?
Moving debt from 15–22% rates to a home-loan rate typically cuts the monthly outgoing substantially. We calculate your exact figure from real payout balances, then show the lifetime cost too so the decision is honest.
Will consolidating debt hurt my credit score?
A new application creates an enquiry, but clearing cards and paying one loan on time generally improves your file over the following months. Missed payments hurt far more than a consolidation ever will.
Do I need equity in my home?
Yes — the combined loan usually needs to sit within 80% of the property value to avoid LMI, though higher LVRs are possible. A current valuation is the first step and we can often get a desktop estimate same-day.
Can I consolidate if I have missed payments or defaults?
Often yes, through specialist lenders at a higher rate, with a plan to refinance back to a mainstream lender once conduct is clean. We are upfront about the pricing and the exit path.
Should I close my credit cards afterwards?
Usually most of them, yes — both to protect the plan and because card limits reduce borrowing power. We talk through what to keep for emergencies.
Is there a fee for this?
Most residential consolidations pay us via lender commission at settlement. Specialist-lender files may differ; anything beyond commission is agreed in writing first.
Ready to compare lenders?
Tell us what you are trying to do. We will come back with a shortlist, not a product dump.