The online mortgage broker

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.

Get started

 

The perks of consolidating debts 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’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), 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 is actually 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 Home Loans adviser for taking care of business while you stay seated on your couch.

Get started

From our blog

Want even more information about how refinancing and debt consolidation could mean more bucks in your back pocket? Read away...

The three must-have mortgage features to get you out of debt fast

A home loan can be a virtually watertight mechanism to grow your wealth – or like a leaky bucket, with much of your hard-earned money trickling into the lender’s profit pool. Here are three mortgage features that make the difference.

How can I rebuild my credit score?

A bad credit report could prevent you from accessing home loan products. All is not lost though, as there are several things you can do to repair your credit.

20 Tips for Repaying Your Home Loan Faster

Your home loan is likely going to be the biggest debt you have in your life. Getting it repaid quickly frees up your money for other things.

The new way to get a Better Deal!

Get started