Should You Roll Your Debts Into Your Mortgage? Here’s What to Know
If you’re juggling credit cards, car loans or personal debts and feeling like you’re just keeping your head above water, you’re not alone. At Australian Finance Brokerage, we’ve worked with countless Aussies in the same position. One of the most effective ways we help them get ahead is by consolidating debt into their home loan.
It’s not a silver bullet for everyone, but when the strategy is right, it can make a big difference.
So, What Is Debt Consolidation?
In plain terms, it means taking your high-interest debts (like credit cards, personal or car loans) and rolling them into your mortgage. That way, instead of managing several repayments and high interest rates, you’ve got just one loan with one rate — and in most cases, it’s far lower.
We see this work especially well for people who are:
Feeling weighed down by monthly repayments
Struggling with credit card balances
Wanting to simplify their money situation
Why Do It?
There are a few reasons our clients go down this path:
💰 Lower Interest Costs
Credit cards can charge 18% or more. Personal loans aren’t much better. Home loans, on the other hand, typically sit around 5–7% — so you can potentially save thousands over time.
💸 Easier Cash Flow
Because the repayments are stretched over your loan term, your monthly outgoings can drop significantly. That freed-up cash could go toward savings, investing, or just catching your breath.
📅 Simpler Finances
One loan. One repayment. Less admin and less risk of missed payments.
🚀 Opportunity to Pay Down Faster
If we set things up right — for example, by splitting your loan — you can isolate the debt portion and pay it off faster, without it dragging on for 30 years.
🔢 A Real-World Example
Say you have:
$8,000 in credit card debt
$15,000 on a personal loan
$20,000 remaining on a car loan
That’s $43,000 in total. Between them, you might be paying nearly $1,200/month — most of it going to interest.
By consolidating your mortgage at around 6%, you could reduce that monthly repayment to roughly $400. That’s $700 extra in your pocket every month.
Is It Right for You?
This isn’t a one-size-fits-all solution. If your spending habits haven’t changed, or if you’re planning to take on more debt, rolling it into your home loan could just mask the problem.
That’s why we take a proper look at:
Your equity
Your income and lifestyle
Your long-term goals
We’ll only recommend it if we genuinely believe it’ll put you in a better position.
Why Clients Work With Us
At Australian Finance Brokerage, we keep things simple, honest, and personal. Based on the Gold Coast, we work with clients all over Australia, and we don’t believe in generic solutions.
You’ll get:
Fast answers
Clear communication
A tailored solution — not a script
Ready to Chat?
If you’ve been wondering whether debt consolidation could work for you, let’s have a conversation. No pressure, no hard sell — just a clear picture of your options.
