Consolidate debt to help pay your mortgage faster

Debt consolidation is when you combine your outstanding debts into one loan, rather than paying off different loans separately like your credit card, personal loan and car loan at different interest rates – and sometimes with different lenders.

• You can just have one loan – meaning just one regular repayment
• You’ll only have one interest rate
• You won’t have to worry about different fees for different loans
• If you roll all your debt into your home loan, you could pay less interest each month (as home loans typically have a lower interest rate)
• If you adjust your loan repayments to be the same as what you were paying for all your individual debts, you could pay off your mortgage faster.

One of the biggest potential benefits of consolidating into your home loan is having just one repayment to monitor in addition to saving on interest, which can help make managing your finances easier. You could even put what you save on interest towards making extra home loan repayments.

However, keep in mind that you might end up paying more interest in the long term – home loans have a longer loan term, which means a greater amount of repayments over time.

Use our extra repayments calculator to see how much money and time you could save by making extra home loan repayments.

Consolidating your debts into one personal loan could potentially save you money by eliminating multiple fees across multiple debts. And if you find a loan with a lower interest rate than the one on your existing debts, you’ll be paying less in monthly interest.

The first step is to talk to your lending specialist, either your broker or Home Lending Specialist. With their expertise in home loans and lending, they’ll be able to answer your questions and help you go through your options.