Home Loan Refinance

Weighing up the pros and cons of refinancing isn’t always straightforward. Debt Negotiators’ mortgage brokers can walk you through the details and help you decide whether it’s the right move for your budget.

Is refinancing common in Australia?

Refinancing activity has been running at record levels, driven largely by owner-occupiers chasing a better deal, according to the Australian Bureau of Statistics.

Many homeowners refinance once an introductory or fixed-rate period ends and they’re rolled onto a higher standard variable rate. Whether that’s negotiated with your existing lender or a new one, it can meaningfully reduce your repayments. Others refinance specifically to consolidate debt and access a lower overall interest rate.

Can I refinance my mortgage to consolidate debt?

If you own property and feel like you’re falling behind, using your mortgage to consolidate debt can be one way back on track. Car loans, credit cards, overdrafts, personal loans, ATO tax bills and other debts can typically all be rolled into the one home loan.

Because mortgage rates are usually well below credit card or personal loan rates, this can be a more efficient way to pay debts down u2014 and extending your loan term can also lower your monthly repayment.

Should I refinance my home loan?

Multiple loans usually means multiple repayment dates and multiple interest rates to keep track of u2014 and if any are variable, budgeting gets harder still. Consolidating them into one refinanced mortgage can bring both your monthly repayment and your effective interest rate down.

Is refinancing to consolidate debt the right move for me?

Refinancing means negotiating a new deal with a lender who’s willing to fold in both your existing mortgage and your other debts. Before you commit, weigh up the costs involved u2014 standard fees, lender fees, interest charges, and any break or exit costs on your current loan.

Debt Negotiators can help you find a competitive, affordable refinancing option. Talk to us before you decide.

What are the drawbacks of refinancing?

Refinancing isn’t free, and it’s worth weighing the costs before you commit.

• Rolling short-term debts into a 25u201330 year mortgage can mean paying more interest overall, even at a lower rate.
• You may face break costs or exit fees on your current loan, application fees on the new one, ongoing account fees, and government duties or taxes on the changeover.

Our debt consolidation calculator can help you estimate your new monthly repayments.

Will a debt consolidation loan hurt my credit score?

Applying can cause a small, temporary dip in your credit score. Making regular repayments on the new loan and clearing your other debts will typically improve it over time.

What are the alternatives to refinancing?

If you don’t own property, or refinancing isn’t an option, there are other ways to bring debt under control:

• A Debt Management Plan
• Consolidating credit cards into a personal loan
• Informal or formal Debt Agreements
• A Personal Insolvency Agreement (Part 10 Agreement)
• Bankruptcy, as a last resort

Debt Negotiators offers a free financial consultation to help you weigh up your options and find the debt solution that fits your circumstances.

What types of debt can be rolled into a home loan?

• Credit cards
• Overdrafts
• Car loans
• Personal loans
• ATO tax debts
• Equipment or furniture purchases

Will I be approved for a debt consolidation home loan?

Approval depends on your financial circumstances and credit history. Start with a free assessment from one of our financial counsellors, who can review your situation and outline your options.

Can I refinance with bad credit?

Credit history does affect your options, but it’s rare for a debt consolidation home loan to be out of reach entirely. Because the loan is secured against your property, lenders see it as lower risk u2014 even with a poor credit score. The main impact of bad credit tends to be the interest rate you’re offered, rather than whether you’re approved at all.

What does a refinance cost?

Your loan term and interest rate are the biggest factors, alongside application, valuation and deferred establishment fees. Rates vary depending on your circumstances u2014 use our debt consolidation calculator to estimate the cost of refinancing.

What rate can I expect?

The rate you’re offered depends on your credit history and the lender. Contact us to explore your options.

When should I refinance?

If debt has built up over time, or a change in circumstances u2014 job loss, illness u2014 has made repayments harder to manage, and you own property, refinancing may ease the pressure of high interest repayments.

How can Debt Negotiators help?

We recommend speaking with an independent consultant before deciding whether refinancing is right for you. Our independent consultants can offer impartial advice, drawing on in-depth knowledge of the law, debt processes and the options available. It starts with a free, no-obligation financial assessment so we understand your full situation, followed by advice tailored to your needs u2014 including sourcing a competitive refinance option and negotiating on your behalf.