Debt Consolidation Explained, How Canberra Residents Can Streamline Repayments

Debt consolidation is an increasingly popular option for Canberra homeowners facing multiple repayments, from credit cards to personal and car loans. By rolling these debts into your mortgage, you can take advantage of considerably lower interest rates and streamline your finances.

What is debt consolidation?

Debt consolidation combines multiple debts into a single, more manageable repayment, usually your home loan. This strategy reduces your overall interest costs and can make budgeting simpler.

Market snapshot, Canberra

Canberra residents carry an average consumer debt (outside of their home loan) of $26,000 in central districts and $24,000 in outer suburbs. With average home loans at $672,000 and $569,000 respectively, this means many households have substantial debt that could be better managed.

Benefits of consolidating into your mortgage

Lower interest rates: Home loan rates are typically far lower than those for personal loans or credit cards.

Simplified repayments: One monthly repayment makes planning easier.

Potential savings: As outlined by the ACCC, switching to a new lender or refinancing can lead to thousands in savings, particularly when combining debts.

Is debt consolidation right for me?

If you’re juggling multiple repayments or worried about creeping interest costs, consolidation can reduce stress and save you money. Having a mortgage professional, like Iconic Mortgage Solutions, review your current liabilities and home equity, then tailor a solution, often negotiating with lenders for more competitive rates and minimal fees, is a smart move.

Key considerations

Factor in any discharge, settlement, or establishment fees.

Check if your new loan will require lenders mortgage insurance, especially if refinancing above an 80% loan, to, value ratio.

Make sure your consolidated loan structure meets your long term financial goals.

How Iconic Mortgage Solutions helps

We specialise in guiding Canberra clients through debt consolidation, offering clear advice, negotiating with lenders, and ensuring all steps comply with best market practices. Every loan is structured for compliance, competitive rates, and easy management.