Debt Consolidation Loans
Debt consolidation involves taking out a new loan to pay off multiple existing debts, such as credit cards, personal loans, or store finance. The goal is usually to simplify your finances into a single monthly payment and, where possible, secure a lower overall interest rate. For homeowners, consolidating these debts into a mortgage is often the most cost-effective path, as home loan rates are significantly lower than unsecured credit. For those without property, a structured personal loan can still offer a major saving compared to high-interest credit card debt. Lenders will focus heavily on your credit history and your ability to manage the new repayment amount. The most important trade-off to consider is the loan term; while consolidating into a mortgage lowers your monthly payment, extending a small debt over 30 years can actually cost you more in total interest unless you make additional repayments. We provide the comparison tools and guidance to help you decide if consolidation is the right move for your situation.
When it makes sense
- Combining multiple high-interest credit card balances into one loan.
- Rolling a car loan and personal loan into your existing mortgage.
- Simplifying finances by moving multiple payment dates to a single day.
- Reducing the total monthly repayment amount to improve cash flow.
- Avoiding the trap of 'minimum payments' on revolving credit cards.
- Moving from unsecured debt to a lower-interest secured loan.
- Clearing store finance or 'buy now pay later' debts.
Indicative terms
| Indicative loan size | ,000 to 50,000+ (Personal or Home) |
| Indicative max LVR | Up to 80% (if using home equity) |
| Indicative rate range | 6.50% p.a. – 12.50% p.a. (secured) |
| Loan term | 3 to 7 years (Personal) or 30 years (Home) |
| Repayment types | Principal & Interest |
| Required documents | Payslips, debt statements, bank history |
| Indicative timeline | 2 days to 2 weeks for approval |
| Indicative fees | Establishment and potential discharge fees |
How it works
- Debt Audit — We start by listing all your current debts, interest rates, and monthly payments to see exactly where your money is going.
- Comparison & Analysis — Our team compares various consolidation options, including personal loans and mortgage top-ups, to see which provides the greatest saving.
- Lender Shortlist — We identify lenders whose credit policies match your situation, especially if you have a high number of existing credit facilities.
- Approval & Pay-off — Once approved, the new loan is used to pay off your old creditors directly, leaving you with one clear path forward.