How much can I save by consolidating?

On $50K of credit card debt at 20%, the difference between paying 20% vs 6% is $7,000 in year one. Over 5 years, the saving compounds dramatically — but only if you don't re-borrow.

Will I lose my home if I consolidate?

Only if you can't make the new mortgage repayment. The risk of consolidation is converting unsecured debt into secured (your home is the security). We stress-test affordability before recommending.

Should I consolidate or just pay down high-interest debt?

Depends on your cash flow. If you can afford to pay $2K/month towards the high-rate debt over 18-24 months, that's often cheaper than consolidating over 30. We model both.

Will consolidation hurt my credit score?

Initially yes — closing accounts and refinancing creates short-term score impact. Within 6-12 months of clean repayments your score usually recovers and improves.

Can I consolidate a tax debt or business debt?

ATO debts and business debts can sometimes be included. Each lender has different rules. We pre-discuss the scenario before lodging.

Debt Consolidation | Mortgagefy

Who this guide is for

Sydney homeowners with $20K+ in credit card or personal debt
Borrowers with car loans, BNPL, or store cards consuming cash flow
Self-employed borrowers using credit cards to bridge cash flow
Anyone wanting one repayment instead of five — at the lowest possible rate

The real challenge

Credit card and personal loan rates of 12-22% can quickly become unsustainable. Borrowers end up making minimum payments forever — the principal barely moves. Cash flow is consumed and savings stop.

Many homeowners have equity sitting in their property that could absorb that debt at a 6% mortgage rate. But without the right structuring, the refinance just enables more borrowing — you end up worse off in 18 months.

How Mortgagefy helps

We model the consolidation scenario carefully: how much equity is available, what the new repayment looks like, and how to structure repayments so the consolidated debt actually gets paid off — not extended over 30 years.

We also tell you when consolidation is the wrong answer. If you're spending faster than you earn, rolling debt into a mortgage just delays the problem and adds 25 years of interest. Honesty is part of the service.

How it works — 4 simple steps

Debt audit

We list all your debts with rates, balances and minimum repayments. Most clients are surprised.

Equity check

We confirm available equity in your Sydney property and what consolidation it can absorb.

Lender match

We compare lenders that actively support consolidation — some have caps on unsecured debt.

Settlement + payoff plan

We refinance and pay each old debt directly at settlement. You get a structured pay-down plan to keep the new mortgage progress on track.

Frequently asked questions

Get a free Sydney debt consolidation assessment

We model the full picture — savings, repayments, payoff plan — and tell you honestly whether consolidation is right for your situation.

Start Your Free Assessment Call 0432 634 648

Get your personalised answer in 2 minutes

Free, no obligation. We'll match you with the right lender for your situation.

Model your scenarios: Use our free home loan calculators to estimate borrowing capacity, repayments, and savings.

Debt Consolidation Home Loans — Roll Bad Debt Into Your Mortgage