How it works
When you refinance, the new lender pays out your car loan, credit cards or personal loans along with your mortgage. You're left with one loan and one repayment.
Illustrative only. Actual savings depend on your debts and new rate.
The trade-off to understand
A car loan you'd have cleared in three years now sits in a 30-year mortgage. Lower repayments, but potentially more interest over time.
"Consolidation works best when you keep paying what you were paying before. That way you get the lower rate and clear the debt even faster."
Anthony Nocon, Financeo
When it makes sense
It suits people with enough equity, high-rate debts, and the discipline not to run the cards back up.
Quick self-check
Tick what applies to you. It's a rough guide, not an assessment.
Frequently asked questions
This article is general information only and doesn't take your circumstances into account. Lending rules, rates and thresholds change, so check current details or speak with us before acting.
Founder and Director of Financeo. More than a decade in lending, including commercial, business, property and private banking roles at Commonwealth Bank.
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