Multiple repayments. Multiple rates. One cleaner structure.
A car loan here, a credit card there, maybe a tax bill on a payment plan. Each one made sense at the time, but together they cost more than they should and take more managing than they deserve. Finance Craft helps you consolidate them into your home loan with the right structure, comparing 30+ lenders to find the best fit. One repayment, one rate, and your cash flow back under control.
What is a debt consolidation home loan?
Debt consolidation through a home loan means refinancing your mortgage to a higher amount and using the extra funds to pay out higher-interest debts such as car loans, personal loans, credit cards and ATO tax debt. You replace multiple repayments at multiple rates with one repayment at a home loan rate.
As a general rule, your total loan after consolidation should stay at or below 80% of your property value to avoid Lenders Mortgage Insurance, and the process takes approximately 4 weeks from application to settlement. Whether it saves you money overall depends on how the repayments are structured, not just the lower rate. Finance Craft compares 30+ lenders, structures the consolidation around your goals, and charges a $0 brokerage fee.
Busy careers accumulate debts. Good structures clean them up.
This is not about financial trouble. It is about financial housekeeping. High-income households accumulate lending the same way they accumulate everything else, one sensible decision at a time. A car on finance because the money worked harder elsewhere. A card balance that grew during a renovation. A tax bill from a strong year of business income. None of it is a problem on its own, but each debt carries its own rate, and most of those rates are two or three times your home loan rate.
We help you restructure all of it through your mortgage. We review every debt, confirm your equity position, and identify the lender across our panel of 30+ that best suits the mix, including lenders that accept ATO tax debt. Then we structure it around your goals. For some clients that means clearing the debt on a similar timeline at a far lower rate. For others it means maximising immediate cash flow, knowing they can make extra repayments and pay it down sooner. Our service costs you nothing.
What a debt consolidation home loan looks like in practice
A typical mix for an established professional household. Three debts, three rates, three repayment dates, all sitting alongside the mortgage.
| Debt | Balance | Typical Rate | Monthly Repayment |
|---|---|---|---|
| Car loan (5-year term) | $60,000 | 9.49% | $1,260 / mo |
| Personal loan (5-year term) | $25,000 | 12.50% | $562 / mo |
| Credit cards (minimum repayments) | $20,000 | 20.99% | $500 / mo |
| Total | $105,000 | Mixed | $2,322 / mo |
| After Consolidating at 6.04% | Monthly Repayment | Monthly Difference | What It Means |
|---|---|---|---|
| Repaid over 7 years within the mortgage | $1,536 / mo | -$786 / mo | The debts stay on a deadline while the rate drops sharply. A real interest saving, not just a smaller repayment. |
| Spread over the full 30-year loan term | $632 / mo | -$1,690 / mo | Maximum cash flow relief now. Minimum repayments over 30 years mean more total interest, though extra repayments can close that gap whenever you are ready. |
Figures are illustrative only and based on typical advertised rates as at mid 2026, with the consolidated portion at a competitive variable home loan rate of 6.04% P&I. Credit card repayment shown at a 2.5% monthly minimum. Actual rates, repayments and total interest depend on your loan, term and lender. Consolidating short-term debt into a long-term loan can increase the total interest paid over the life of the loan unless the debt is repaid faster than the minimum. This is general information, not credit advice. We assess the full picture before recommending anything.
The Straight Answer on Whether It Saves You Money
A lower rate does not automatically mean less interest. If you roll a five-year car loan into a 30-year mortgage and only ever pay the minimum, you can pay more interest overall, even at a third of the rate. Plenty of pages selling debt consolidation skip that part.
Here, you see both sides before you decide. Some clients choose a shorter repayment timeline for the consolidated debt, through a loan split or a clear repayment plan. Others deliberately take the longer term for the cash flow relief, then use extra repayments to pay it down sooner. Both are valid. What matters is choosing with the full picture in front of you, and if consolidation does not stack up for your situation, we will tell you that too.
Not sure whether consolidating stacks up? We will run both sides of the numbers. Free, no obligation.
Book a Free Lending ReviewYour consolidation in four steps
Lending Review
We map every debt you hold (balances, rates, terms and repayments) alongside your home loan and property value. Most clients have never seen it all on one page. This takes under 30 minutes and costs nothing.
Honest Analysis
We model the consolidation both ways, showing the cash flow relief and the total interest picture over time. You see the trade-offs before you decide, including whether it makes sense to consolidate everything or only some debts.
Lender Match
Not every lender treats consolidation the same way. Some cap the number of debts, some decline tax debt, some price it differently. We match your mix to the right lender across our panel of 30+ and structure the loan splits properly.
Settlement and Payout
At settlement the debts are paid out and closed. Car loan gone, cards cleared, tax debt settled. Some lenders pay each debt directly, others release the funds for you to finalise. Either way we manage the payout figures and paperwork through to settlement, then review your rate annually from there.
The debts we roll into one structure
Car and Vehicle Finance
Car loans and novated leases that have run their course typically sit between 8% and 12%. Rolling the payout figure into your mortgage cuts the rate substantially, and if the consolidated portion is structured over a similar term, you keep the saving instead of stretching the debt.
Credit Cards
Card rates above 20% make even modest balances expensive to carry. Consolidating clears them at your home loan rate. Just as importantly, closing paid-out cards restores borrowing power, because lenders assess cards on their limit rather than their balance.
ATO Tax Debt
Common after a strong year of business or contracting income, and increasingly expensive now the general interest charge is no longer tax deductible. A number of lenders on our panel will refinance tax debt into your home loan. We know which ones, and what they need to see.
Personal Loans and BNPL
Personal loans, renovation finance and lingering buy now pay later balances all carry rates well above your mortgage. Consolidating them simplifies your position to a single repayment and removes a stack of accounts from your credit profile before your next application.
One conversation is usually enough to see whether consolidating makes sense for you. No cost, no obligation.
Talk to ShaneEquity, borrowing power and timing
Consolidation works through your equity. As a general rule, your total loan after consolidation should stay at or below 80% of your property value to avoid Lenders Mortgage Insurance. With the property growth the Eastern Suburbs has seen, most established owners have more room than they realise. Serviceability is assessed on the full new loan amount, so income documentation matters, particularly for self-employed applicants. The mechanics are the same as a refinance. Application, valuation, approval, then settlement, where the debts are paid out and closed. Approximately 4 weeks end to end.
Debt consolidation FAQs
Most personal debts can be rolled into your mortgage, provided you have enough equity. Common candidates include car loans, personal loans, credit card balances, buy now pay later balances, and ATO tax debt for self-employed borrowers. Some lenders limit the number of debts or the total amount that can be consolidated, which is where comparing 30+ lenders matters.
It reduces your interest rate and your monthly outgoings, because home loan rates are far lower than credit card or personal loan rates. However, if you spread a five-year car loan over a 30-year mortgage term and only make minimum repayments, you can pay more total interest despite the lower rate. The structure matters. We typically recommend directing the cash flow you free up into extra repayments, or structuring the consolidated portion over a shorter term, so you get both the cash flow relief and a genuine interest saving.
As a rule of thumb, your total loan after consolidation should stay at or below 80% of your property value to avoid Lenders Mortgage Insurance. For example, if your home is worth $2M and your mortgage is $1.2M, you have room to consolidate substantial debt while staying under 80% LVR. Going above 80% is possible with some lenders but usually involves LMI, and we would run those numbers with you first.
Yes, though not every lender accepts it. Tax debt is common for self-employed professionals and business owners, and a number of lenders on our panel will refinance it into your home loan at home loan rates, which is usually far cheaper than an ATO payment plan and clears the general interest charge. We know which lenders take a practical view of tax debt and what they need to see.
The refinance itself involves a credit check, which has a minor, temporary impact. Beyond that, consolidation often helps your credit profile over time. You replace multiple accounts and repayment obligations with one, which reduces the chance of a missed payment, and closing paid-out cards and loans reduces your total credit exposure.
In most cases, yes. Lenders assess a credit card at around 3.8% of its limit per month regardless of the balance, so open cards reduce your borrowing power even at zero balance. More practically, consolidation only works if the cards do not get drawn up again. Many clients keep one card with a modest limit for day-to-day flexibility and close the rest.
The same as a standard refinance, approximately 4 weeks from application to settlement. At settlement, some lenders pay out each debt directly, while others release the funds for you to clear the debts yourself. We confirm how your lender handles it and coordinate the payout figures for each debt as part of the application.
Yes. Self-employed borrowers are often the clients who benefit most, because business cycles can leave a mix of vehicle finance, equipment loans, working capital debt and tax liabilities. We work with lenders experienced in self-employed applications, including those that accept alternative income documentation, and structure the consolidation around your actual cash flow.
Your local Sydney Eastern Suburbs broker
We specialise in helping clients across Coogee, Clovelly, Bronte, Bondi, and all surrounding Eastern suburbs.
One structure. One repayment. Done properly.
Book a free lending review. No obligation. Just an honest look at whether consolidating makes sense for you.