The mortgage brokers at Smartline Rockingham know something about your home loan that you might not know. If you have more equity in your home than total debt, you may be able to refinance your home to cover all of your debt.

The RBA’s recent decision to keep the cash interest rate at a record low is allowing lenders to charge as little as 4.13% interest to some of their better customers. However, many personal loans still come with interest rates of 10-18%. A store credit card or even a bank credit card may be charging you as much as 15-29%.

In any market, home loans carry lower rates than any other loan. In the current market, there is a huge disparity between home loan rates and personal loan or credit card rates. That means you can save a lot of money by refinancing your home loan to consolidate your debts.

There are a few ways to do this. Most people like to separate the home loan part from the debt consolidation part of the loan. This allows you a shorter period of time to pay off the consolidated debt, but at the same rate as the home loan.

Why Debt Consolidation Works so Well

With a debt consolidation loan, you only have one payment to make every month. That means one statement and only one monthly fee. You will save money on the total amount you are paying. This savings can be used to further your current lifestyle or it can be used to pay off your loan faster. It may also enable you to start investing in your future.

We do caution you against turning your current debt into a 25-30 year loan. The quicker you pay off your debts, the more advantage you can take of investment opportunities and the closer you will be to a debt-free lifestyle.

To learn, call a mortgage broker at Smartline Rockingham today: (08) 9527 1800.