Car finance may be considered for consolidation, but the type of agreement matters. Review its payout amount, remaining term and any balloon payment before deciding whether it belongs in your home loan.
Prepared for Reduce My Repayments by Monet Finance · Published 5 October 2026 · General information for Australian homeowners
Identify the finance agreement
Bring the contract, not just the monthly debit. A standard car loan, a lease and a salary-packaged arrangement need different questions. If your employer or a lease provider is involved, ask them for the current exit process and costs. Do not assume a home-loan payout preserves the same tax or employment benefits.
Look beyond the regular payment
Some car loans leave a balloon payment due at the end. Record the amount and date alongside the monthly payment. Ask whether the payout quote includes it. A comparison that ignores this final amount will not show the full existing commitment.
Choose a realistic payoff horizon
Ask whether the car portion can be repaid over a shorter period even if the home loan itself runs longer. Think about how long you expect to own the vehicle and what happens if you replace it. Carrying the old car debt in your mortgage while financing a replacement can make the next purchase more expensive than it appears.
Confirm the settlement details
Check who pays out the finance, how the vehicle’s security is released, and what confirmation you receive. Keep the paperwork. After payout, confirm the car-loan account is complete and any direct debit is handled correctly rather than cancelling it before the lender confirms settlement.
What to prepare
- Finance contract and current statement.
- Payout amount, quote expiry and exit fees.
- Balloon or residual amount and due date.
- Lease or salary-packaging advice where relevant.
Your questions answered
Can I include a novated lease?
Do not treat it as an ordinary car loan. Obtain a termination quote and discuss the employment and tax implications first.
What if I have a balloon payment?
Include it in the debt review and confirm the payout quote accounts for it.
Will the car stay as security?
Confirm the old finance release and the new loan’s security arrangements before settlement.