A personal loan may be eligible for consolidation into a home-loan structure. Before changing it, compare the current payout amount and remaining term with the proposed loan, rather than comparing interest rates alone.
Prepared for Reduce My Repayments by Monet Finance · Published 5 October 2026 · General information for Australian homeowners
The remaining term matters
Write down how many payments remain on the personal loan. If it is close to being paid off, moving it into a mortgage may create a longer debt commitment for relatively little monthly benefit. Ask to see the consolidated portion repaid over the existing remaining term as well as any longer proposed term.
Get an actual payout figure
A statement balance is useful for an early conversation. Before settlement, ask the current lender for a payout quote and its expiry date. Check whether early repayment changes the amount due and whether there are outstanding fees. Avoid planning around a number that will be out of date when the payout occurs.
Compare selective consolidation
If you have several personal loans, review them individually. One might carry a different rate, a short remaining term or a payout cost that changes the answer. Make a simple list with a separate decision next to each debt: include, leave outside, or investigate further. There is no need to treat every loan as if it has the same economics.
Keep the purpose visible
Think about what the original borrowing paid for and how long you want to keep paying for it. A holiday, appliance or past expense can disappear from view inside a large mortgage balance. A separate split or a written repayment target can make the remaining debt easier to track.
What to prepare
- Current statements and loan contracts.
- Remaining term and repayment frequency.
- Payout quotes before settlement.
- Any secured asset, guarantor or joint borrower.
Your questions answered
Can I consolidate only one personal loan?
Selective consolidation can be assessed. It does not have to include every debt.
Is a lower interest rate enough?
No. Compare fees, term, repayments and the total amount paid under each option.
Do fixed-rate loans have exit costs?
Some do. Check your contract and obtain a payout quote instead of assuming there is no cost.