Consolidating your debt your mortgage
Before you decide to refinance your mortgage with a debt consolidation loan, seek help from a licensed mortgage broker or financial adviser.In some cases, a debt consolidation mortgage can see you paying more in interest charges and fees if the loan is not structured correctly.Application subject to normal credit criteria and approval. Life can deal you unexpected hands such as health concerns, relationship breakdowns or a loss of employment which can affect your ability to service your debt.Instead of paying off multiple debts, you pay off all of your debts with one home loan repayment each month.
For example, if you purchase a car you might structure the financing over five years, because at the end of the five years you may consider selling the car.” If you were to structure the financing for your car over 30 years, it means that if you sell the car in five years time, you’ll actually end up holding onto the debt for an additional 25 years – which dramatically increases the overall interest you’re paying for the car.
The advantage for our clients was that it reduced their overall monthly repayments substantially, as they only had one mortgage payment to make.