Credit cards at close to 19%, a personal loan, maybe a tax bill on a payment plan, and a home loan sitting at around 6.5%. With the RBA cash rate now at 4.60%, it’s no surprise many Australian homeowners are asking whether they should roll everything into the mortgage.

The answer is: it depends on how you structure it. Lenders also test your budget at a higher buffer rate, so understanding home loan debt consolidation before you apply can save you time and stress.

Take $50,000 of unsecured debt. Repaid over five years at 15%, it costs about $21,370 in interest. Stretch it across a 25-year mortgage at 6.5% and your monthly repayment drops from $1,189 to $338, but the total interest jumps to roughly $51,280. That’s a lower repayment but a much higher cost. A shorter five-year split on the same rate cuts interest to about $8,700.

The lesson? Consolidation works best when you treat it as a way to clear debt faster, not just make the monthly payment feel smaller. Every situation is different, so the best next step is a conversation about yours. Book a call now with our mortgage experts to review your loan, compare the total cost of consolidating, and map out a plan to clear your debt sooner.