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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UNO home loans

November 30, 2023

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What our customers are saying

John Cahill
March 7, 2024
Scott Wilkinson was my broker last year when I sought finance for a new property investment and refinance for my property port folio. He was an absolute delight to work with. He was always professional, on time and always available to talk at a moment's notice to discuss my credit options and give well considered advice; usually this was very much after-hours due to my work commitments during the day. He was always happy to talk. I had not used a mortgage broker in a long time opting to do the re-financing myself. This was primarily due to disappointing experiences I'd had with mortgage brokers in the past. However with the increasing complex nature of dealing with credit providers, I could see that I needed a good advocate to act on my behalf for this particular refinance. In all honesty I did not hold much hope that in the current credit environment I would be able to secure the finance I required for the new property investment I was wishing to secure. Scott found a way however and was able to secure the finance along with the refinance of my portfolio. I have since referred friends to Scott and I know they have been very happy with his work. He is ideal for property investors who have busy day-jobs and need someone who understands property investment strategy and is able to tailor credit advice and options to their needs. Scott provides this advice and information in a way that is clear and concise. He kept me up to date continually during the application process. He made what could have been a very stressful and frustrating process easy and straightforward. I could not recommend Scott and the team at UNO Home Loans more highly. They are all a delight.
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Sally Mackenzie
February 19, 2024
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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Rod
February 13, 2024
Scott and his team were just A-mazing. We felt supported through the whole process with the greatest quality and care. Every question answered right in time, or even before we asked. The process was smooth and we got the best outcomes we could have wished for.
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Angela Biddle
February 6, 2024
Our mortgage recently came up for renewal, and with interest rates skyrocketing we were looking for ways to minimise the impact. Michael and his team were proactive and attentive. Michael spent time with us to understand our circumstances. He found mortgage options that worked with our current financial situation and longer investment plans. He presented clear options, providing guidance where needed. He and his team were helpful and responsive - streamlining the process and keeping us updated through the negotiations. In the end, Uno did the heavy lifting and secured a significantly better rate than our current bank offered, all with friendly, personal service. We would highly recommend UNO Home Loans.
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Fotis Bikas
January 15, 2024
I cannot help but congratulate Scott Wilkinson of UNO Home Loans for being an absolute credit to both his company and the entire loans industry. Scott is a truly rare gem of a broker in that he will not only go the extra mile to achieve for each customer the very best deal, but his knowledge of all and sundry within the industry is unsurpassed (you will see what I mean if you speak to him). Additionally, Scott has a clear passion for imparting his wealth of information with each customer, whereas the conversation with most other brokers would simply be over if they could not get you the best deal. For me, Scott Wilkinson of UNO Home Loans stands head and shoulders above the competition and I feel privileged to benefit both from his expertise and professionalism whenever it is time for a refinance or new loan.
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Tomoharu Matsui
January 11, 2024
Michael Parsons helped me a lot when it's difficult to establish my capabilities in loan.
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Gillian Kearon
January 9, 2024
I highly recommend Mike Parsons as a mortgage broker. I couldn't fault the service provided by UNO. Thanks Mike!
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Taner T
December 20, 2023
Thank you Eren Tan for the amazing service and support. Our Loan was a little tricky and complex for other lenders but Eren managed to get it over the line in record time. His professionalism and dedication to our needs was exceptional. If you need a Loan no matter how complex your situation, make sure you contact Eren at UNO Home Loans.
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Karaipu Brown
December 20, 2023
Buying & selling a house at the same time is very stressful but Scott Wilkinson from UNO home loans made sure we knew what was happening & took most of the stress away. He always kept us up to date and if we had a concern or wanted clarification on something we were able to call him, if he didn’t know the answer straight away he will find out and contact us back.. now we are enjoying our new house and turning it into a home :)
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Chris Anderson
December 18, 2023
Just completed my first loan with UNO which was so much easier than with other other brokers I have used in the past. Our broker MIKE PARSONS always had time for me and broke things down for me in the simplest of terms and was very patient with my silly questions and my constant changing of plans. I wish I had used them in the past as I wouldn't be in the situation I'm in now. Can't recommend them highly enough. Thanks UNO and Thanks MIKE 😊
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Stephen Broomfield
December 11, 2023
To be able to recommend Scott Wilkinson for your mortgage broker was a privilege. We had deals fall through but Scott supported, guided and stuck with us, proper partnership. The whole team at UNO helped us and supported us right through to after settlement. Made sure everything was correct and how we are progressing. Communication was amazing and straightforward and easy to understand. Transparent. We can not Recommend Scott and the team as Uno high enough. Use UNO with confidence.
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Tarek Hussain
December 6, 2023
Can't thank Amy enough for her hard work, dedication and determination on getting multiple loans completed for me. I wouldn't hesitate in recommending Amy and the Uno team to any of my associates. Will definitely be back in the near future!
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