How it works
A new home loan pays out your existing mortgage and selected debts such as credit cards, personal loans or car loans. Those debts then become part of the mortgage balance.
Potential benefits
- One repayment instead of several
- Lower monthly commitments in some cases
- Clearer cash flow and budgeting
- Opportunity to reset your loan structure
Risks to check
Spreading short-term debts over a longer mortgage term may increase total interest. CredQ reviews repayment strategy, redraw access and whether debt accounts should be closed after consolidation.
Lender requirements
Lenders assess conduct on the debts being consolidated, your equity, serviceability and the reason for consolidation. Some may require direct payout at settlement.