Question 1

Will consolidating debt hurt my credit score?

Accepted Answer

In the short term, making a new loan application adds an "enquiry" to your file. However, in the long term, paying off multiple "maxed out" credit cards and having only one managed repayment usually improves your credit score significantly.

Question 2

Do I have to close my credit cards?

Accepted Answer

Usually, yes. The lender offering the consolidation loan will almost always make it a "condition of approval" that you close the credit card accounts. This is to protect you from running up the debt again (double-dipping) and finding yourself in a worse position.

Question 3

Can I consolidate debt if I have bad credit?

Accepted Answer

Yes. If you have missed payments or defaults, standard banks may say no. However, I have access to specialist lenders who focus on "credit repair." They may charge a slightly higher rate, but it is often still much cheaper than the 20%+ you are paying on credit cards.

Question 4

How much equity do I need?

Accepted Answer

Lenders generally lend up to 80% of your home's value (including the new consolidated debt). If you go above 80%, you may pay Lenders Mortgage Insurance (LMI), which might outweigh the benefits. I will calculate your "usable equity" to see if the math stacks up.

Question 5

Can I consolidate debt if I am self-employed?

Accepted Answer

Yes. Self-employed borrowers often use consolidation to tidy up business debts or tax bills. We may need to use "Low Doc" or specialist lending solutions depending on your tax returns.

Question 6

Can I consolidate ATO tax debt?

Accepted Answer

Yes, but major banks usually won't touch tax debt. We would look at specialist lenders who allow "ATO Debt payout." This clears your account with the ATO (stopping the fines) and puts the debt into your mortgage at a manageable rate.

Question 7

Does consolidation mean my home is at risk?

Accepted Answer

When you move unsecured debt (like a credit card) into a secured debt (your mortgage), your home becomes the security for that money. This means it is vital that you keep up with the new repayments. However, because the repayments are usually much lower, most clients find it easier to keep their home safe.

Question 8

How fast can this happen?

Accepted Answer

A standard refinance takes 2–4 weeks. If you are under pressure from creditors, I can prioritize your file and look for lenders with fast turnaround times to get you relief quickly.

Question 9

Can I consolidate HECS/HELP debt?

Accepted Answer

Technically yes, you can "cash out" equity to pay off HECS. However, HECS is usually the "cheapest" debt you will ever have (indexed to inflation, no commercial interest). It rarely makes financial sense to swap HECS for a home loan interest rate unless you are trying to boost borrowing power for another purchase.

Question 10

Is there a limit to how much I can consolidate?

Accepted Answer

he limit is determined by your "usable equity" (your home's value minus your current mortgage) and your "serviceability" (your income vs. expenses). There is no hard dollar cap, provided the numbers work.

Question 11

What if my home value has dropped?

Accepted Answer

If your home value has dropped, you may have less equity available. We would need to order an upfront valuation to see exactly how much room you have to move before submitting an application.

Question 12

Can I get cash out for renovations at the same time?

Accepted Answer

Yes. We can do a "split purpose" application: one part to pay out your debts, and another part released as cash for your renovations. This is a very common strategy to "reset" your finances.

Question 13

Do I need a lawyer for this?

Accepted Answer

No. Debt consolidation is treated as a standard refinance. You do not need a lawyer unless you are also changing the names on the title of the property.

Stop Juggling Bills. Consolidate Your Debts into One Lower Repayment.

Why You Feel Like You’re Not Getting Ahead

Current Situation

The Consolidated Solution

A Note on Responsible Lending

What Can We Roll Into Your Home Loan?

Credit Cards & Store Cards

Car Loans

Personal Loans

ATO Tax Debt

Buy Now, Pay Later

Get Back in Control of Your Finances

Common Questions About Debt Consolidation