Debt consolidation
Roll your other repayments into your home loan and SAVE!*
By consolidating your debts you may be able to reduce the amount you pay each month in repayments.
Home loan interest rates are generally lower than the interest rates charged on credit cards or personal loans, so by rolling these debts into your mortgage, the total amount that you have to repay each month will reduce.
Compare the two example scenarios below to see how consolidating your debts might work for you.
Example Scenario 1: Before consolidating your debts*
| Type of loan
| Amount outstanding
| Interest rate
| Monthly repayment
|
| Home loan
| $210,000 | 7.50%pa
| $1,468
|
| Car loan / Lease
| $24,000
| 9.00%pa
| $498
|
| Credit card 1
| $15,000
| 17.00%pa
| $373
|
| Credit card 2
| $6,000
| 15.00%pa
| $143
|
| Personal loan
| $18,000
| 12.00%pa
| $474
|
| Total | $273,000 |
| $2,956 |
Example Scenario 2: After consolidating your debts into your home loan*
| Type of loan
| Amount outstanding
| Interest rate
| Monthly repayment
|
| Home loan
| $273,000 | 7.50%pa
| $1,908
|
Total
| $1,048 |
To speak to one of our consultants about Debt Consolidation, complete an online enquiry or contact Homeloans today.
*Figures and interest rates are
indicative and used for the purpose of this comparison only. Homeloans
does not assert that these bear resemblance to current interest rates
and as such should not be relied upon without first seeking independent
financial advice based on borrower’s individual circumstances. Figures
and interest rates quoted for “Home Loan” in both scenarios assume a
variable interest rate over a maximum loan term of 30 years with
Principal and Interest repayments. Figures and interest rates quoted for
“Car loan/lease”, “Credit cards 1 & 2” and “Personal loan” are used
for the purpose of this comparison only.