Consolidating credit card and personal loan debts into the home loan is by far the most common reason for our clients to consider refinancing their home loan.
The main advantages of consolidating debts into the home loan are:
- Reduce monthly repayments, home loan interest rates are much lower than the rates for credit cards and personal loans, so significant reduction in overall repayments can be achieved by consolidating
- Easier to manager, making one repayment per month is much easier to manage that several monthly repayments which might fall due on different dates
- Save on fees, having multiple credit cards and personal loans will incur fees for each card or loan which will add up... Consolidating into one home loan will reduce fees