Peard Finance

Debt Consolidation

Consolidating debt by refinancing your home loan has multiple benefits, depending on your circumstances. Some reasons that you may look to do this include:

  • It could help you manage a range of other short-term debt solutions that usually attract a higher interest rate. This could include existing Credit Card, Store Card or Personal Loan debts.
  • The ease of managing a single loan gives you a regular repayment amount
  • Before you decide that refinancing your home loan is the best way for you to consolidate your debts, you need to consider a number of costs that could arise during this process
  • Depending on your situation, refinancing can attract a range of fees and other charges, including:
  • Lender fees – This includes exit fees for your existing loan, establishment fees for your new loan, and any other applicable lender fees and charges

You should factor in all of these costs when calculating whether refinancing works for you.