Need to get on top of your debts? Using your home loan for debt consolidation could help

When you refinance your loan to consolidate debt, it’s usually to save money. You may be paying off a personal loan, car loan and multiple credit cards on top of your home loan – and paying different rates of interest on all of them.

Refinance, consolidate and win

When you refinance your loan to consolidate debt, it’s usually to save money. You may be paying off a personal loan, car loan and multiple credit cards on top of your home loan – and paying different rates of interest on all of them. (Credit card debt could be between 9.99% p.a. and 21.99% p.a., for example.) Consolidating all your debts into your home loan allows you to pay off everything at once under the one interest rate. Think of it as KonMari for your loans. Does that credit card really bring me joy? Does that car loan actually deserve its own place on the kitchen bench or can it be moved into a cupboard with all the other loans? Consolidating your debt also helps you keep track of payments, ensuring you don’t accrue fees for missed payments or further damage your credit profile.

The perks of debt consolidation through a home loan refinance:

  • Pay a lower interest rate
  • Simplify the number of payments you have to keep track of
  • Help your credit score

Is it a good idea to do a debt consolidation loan?

While consolidating debt is a more affordable option of paying off multiple loans for many people – and can improve cash flow – it does, however, mean you’ll be paying interest on the combined balance for a longer period of time (the length of the loan). It could also mean that you pay more total interest over time, so you should consider whether it is right for you and how you will be managing your finances. It’s important to make additional repayments to pay off the enlarged loan sooner – or pay off a big chunk whenever you can.

Can I consolidate my credit card debt into a home loan?

Consolidating debt into your home loan enables you to pay off everything at once under the one interest rate. You can consolidate all sorts of debt into your home loan: credit card debt, car loan debt, personal loan debt, that debt you’ve owed your parents since 1996 (okay, not that last one). Pulling credit card debt into a home loan allows you to enjoy the lower interest rate that most home loans offer compared to other forms of credit. (Credit card debt could be between 9.99% p.a. and 21.99% p.a., for example.) It does, however, mean paying interest on the combined balance for a longer period of time (the length of the home loan), and possibly paying more total interest, so it’s important to make additional repayments to pay off the enlarged loan sooner – or pay off a big chunk when you can. Chat to UNO about your options.

Is a debt consolidation loan bad for your credit?

Consolidating your debts can be good for your credit score. This is because, to credit agencies, it appears you are paying off several debt accounts, keeping you in the black. Search for rates

How do I consolidate my debts?

Generally you’ll want the overall Loan to Value Ratio of your new loan to be under 80% so you can avoid paying Lenders Mortgage Insurance (LMI) – the insurance lenders take out to protect themselves against the borrower defaulting on the loan. To consolidate your debts, you’ll need:

  • Your three most recent months of credit card/personal loan statements. The lender will check those statements to see if they’ve been paid on time and make sure there are no arrears.
  • A hand to virtually high five your UNO adviser for taking care of business while you stay seated on your couch. Get startedIf you would like to speak about your home loan objectives Book in a quick call with our customer care teamBook a call in with UNO
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November 30, 2023
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July 11, 2025
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We’re incredibly grateful to Mike Parsons for his outstanding support and expertise. Mike took the time to genuinely understand our unique situation and demonstrated a deep level of knowledge and insight throughout the process. His ability to assess our needs and apply tailored solutions made all the difference. Thanks to his thoughtful approach and professionalism, we were able to achieve an ideal outcome that perfectly suited our circumstances. We highly recommend Mike to anyone looking for a knowledgeable and client-focused professional who truly goes the extra mile.
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The UNO Home Loans team provided a great experience. I'm an expat Aussie living in the UK who was looking for an investment property back home in Australia. Mike and the team guided me through the whole process from giving me an initial indication of how much I could borrow, to finding me a lender with an appropriate loan that met my needs, and finally through the settlement process with the bank. The team were always available to answer my questions very promptly. The whole experience was very easy and hassle free.
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June 24, 2025
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Amazing service from Scott. Efficient, clear and fast. Got my homeloan refinanced in record time.
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We had a fantastic experience working with Paul at Uno. From start to finish, he was professional, attentive, and genuinely cared about us and our situation. He kept in touch throughout the entire process, always keeping us informed and making everything feel simple and stress-free. Nothing was ever too much trouble, and his support made a big difference. Highly recommend Paul to anyone looking for a reliable and caring broker!
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June 10, 2025
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We chose Uno Home Loans from their impressive web site knowing we were going to find it hard, on many fronts, to qualify for a home loan. We were incredibly fortunate to be assigned Mike Parsons as right from the get-go, despite the complexities, he hit the ground running for us. He was incredibly knowledgeable, with years of experience but what was immediately apparent and impressive was that he was totally invested in getting us over the line, doing absolutely everything possible, including working around the clock. Despite it being a relatively small loan in the order of things, Mike never missed a beat, getting docs ready, following up and answering every request from the proposed funder immediately. He kept us informed on progress the minute anything happened, and again if anything needed to be done, he was right on it. In short, we highly recommend Uno, and Mike, knowing what a remarkable job he did, over many weeks, to get us our loan. He got us a great deal, with far better rates than we expected, so we couldn't be happier. In fact, without doubt, you'd be hard pressed to find a more personable, sharp, hard working, dedicated professional who clearly prides himself on getting his customers standout results.
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Paul was amazing to work with. He went out of his way to help us with every last question. He sorted everything out for us, was a wealth of knowledge in terms of who else to use to support us in the buying process. He made moving from New Zealand so easy. He explained everything to us in an easy to understand way. He really worked for us!!! Plus he's such a lovely funny guy, super approachable. Super responsive, has a great team. Totally took care of us in the whole process. I can't wait to use Paul again and would recommend him to every kiwi moving over and all our aussie friends :)
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Paul from Uno has been amazing. Made it so easy! Highly recommend and made the finance process much more enjoyable experience for us.
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