Debt Consolidation › How does consolidating debt into your mortgage work?

How does consolidating debt into your mortgage work?

Your other debts are paid out using either a refinance or an increase to your home loan, so their balances are added to your mortgage. You then repay one larger home loan instead of several separate debts.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

In practice the lender pays out your credit cards and loans at settlement, and those balances become part of your home loan. Your many repayments collapse into one. Because it relies on your equity and serviceability, it is assessed like any home loan change. The structure you choose affects how much you ultimately pay.

The key points

Your debts are paid out and added to the mortgage.
Many repayments become one.
It relies on your equity and serviceability.
The structure affects total cost.

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Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.