Your debt consolidation, step by step

Before you start: what consolidation actually does

Debt consolidation through a home loan uses new or increased mortgage borrowing to pay out selected debts. Your mortgage balance increases, while the agreed old debts are repaid. It can simplify your repayments and may improve monthly cash flow, but the debt has moved rather than disappeared.

The first question is whether that change makes sense for you. We consider the whole home loan, fees, repayment term and alternatives. Keeping a debt outside the plan or choosing not to refinance can be the better outcome. A lower required monthly repayment can also mean more total interest if the debt is carried for longer.

This page explains the process. Our Learning Hub explains individual topics such as equity, credit history, tax debt and loan costs in more detail. You do not need to read every article or have perfect paperwork before asking about your situation.

1. Request your RepaymentCheck

Start with the appointment request on this website. The questions give us an initial picture of home ownership, debts, income and repayment circumstances. Choose the ranges that best reflect your position; the first step is not a formal loan application or an instant repayment calculator.

We then have a free phone conversation of about 15 minutes. We discuss what is making the repayments difficult, what you want to change and whether a lending review is appropriate. The estimate comes after that conversation and an assessment of the relevant information. It is indicative, not approval or a guaranteed saving.

Before the chat, rough mortgage and debt balances are useful. You do not need to send identity documents or assemble a full application just to ask a question. If you cannot meet essential living costs or face an urgent mortgage notice, mention this immediately. Contact your existing lender and seek independent assistance rather than waiting for a potential refinance.

2. Assess the full picture

We establish the property position, the debts you want to address and the household’s ability to repay. Home equity is only one part of this assessment. A lender must also accept the property, your income evidence and the repayment history under its own policy.

We check balances, credit limits, repayment amounts, remaining terms and any payout fees or balloon payments. Your expenses and obligations that will remain outside the refinance also count. For joint borrowing, the relevant owners, applicants and responsibilities need to be clear.

Tell us early about variable income, self-employment, arrears, hardship arrangements or credit-file issues. These can change the evidence and options. The purpose is to understand the circumstances accurately, not to send the same application to several lenders and hope one accepts it. Before progressing, we explain consent and when credit reporting or a formal enquiry may be involved.

3. Gather the evidence that fits your situation

We provide a document checklist based on your employment, property and proposed borrowing. The list below shows common categories, rather than documents every lender always requires. Use the requested secure channel for sensitive information and let us know if something is unavailable.

Account balances can change between the first conversation and settlement. Statements establish the position for assessment; a current payout figure establishes the amount required to discharge a debt. Keep making required repayments unless the creditor has agreed otherwise in writing.

For business owners, turnover is not the same as personal income. Tax returns, financial statements or alternative evidence may be needed depending on the lender and structure. Ask your accountant about tax treatment where personal and business debts interact.

4. Compare the plan before you commit

We compare a proposed structure with your current position and realistic alternatives. Full consolidation is not the only choice. Partial consolidation, an increase with the current lender, direct repayment or retaining an existing facility may deserve consideration.

Ask to see the required repayment, interest assumptions, fees and intended payoff date. The comparison should include any change to the existing mortgage’s rate and term. A benefit on a relatively small card balance can be outweighed by a higher rate on a much larger home loan.

A separate split can keep the consolidated portion visible. It does not shorten the term by itself or remove your home as security. If the aim is to clear that portion in five years, the plan needs repayments that support five years, not just a 25-year minimum. We explain the trade-offs before you decide whether to apply.

5. Apply and work through the lender’s assessment

If you choose to proceed with a suitable proposal, the application goes to the selected lender with the required documents and consents. The lender may verify income, examine account conduct, obtain a property valuation and request additional information.

Conditional approval means something still needs to be satisfied. A requested document, accepted valuation or payout condition can change the next step. Formal approval is a later milestone, and loan documents and settlement arrangements still follow it. Neither stage means the old debts have already been paid.

We help manage the application and explain requests or conditions. If the proposed terms change, review the updated position rather than assuming the initial estimate still applies. Approval rests with the lender; an enquiry, preliminary assessment or broker discussion cannot guarantee it.

6. Settle and confirm the old debts are dealt with

After approval and completion of the required loan documents, the refinance and debt payouts are coordinated according to the lender’s requirements. This can include discharging the current mortgage and paying specified creditors. Check which amounts are being paid directly and what actions remain your responsibility.

At settlement, the agreed new borrowing is drawn and the instructed payouts occur. Afterwards, confirm the old account balances and any required closures. A card with a zero balance can still be an open credit facility; a payout is not always the same as account closure. Watch for residual interest, fees or direct debits on old accounts.

Confirm the new repayment amount, first due date, debit account and any separate split arrangements. Set up a practical bill-payment routine and keep enough money available for the first instalment. Do not cancel existing payments early on the assumption settlement will happen on a particular date.

7. Monitor the rate and keep the plan moving

Settlement puts the structure in place. The next task is to keep it aligned with your finances and payoff goal. We keep track of the rate and review whether the arrangement remains suitable for your situation. If there is a reason to consider a change, it needs a fresh comparison of benefits, costs and eligibility.

Tell us when income, employment, property plans or household commitments change. Check that extra repayments are reaching the intended debt portion and that paid-out facilities are not rebuilding balances. Keeping some monthly cash-flow relief for a buffer may be sensible; the amount directed to faster repayment must also be sustainable.

Ongoing review cannot guarantee the lowest rate in the market or future refinance approval. The aim is to identify worthwhile opportunities and keep a clear view of the rate, balance and repayment target, rather than assuming a cheaper future loan will solve a problem later.

How long does it take, and what can change the path?

The phone chat is about 15 minutes. The complete refinance takes longer and depends on the documents, valuation, lender assessment, discharges and settlement requirements. We explain the next milestone for your case rather than promising a universal completion date.

Missing income evidence, disputed credit information, property issues or changing payout figures can delay or change the proposal. Self-employed or complex applications may need additional work. If you have a debt expiry, legal deadline or planned purchase, raise the date at the start; a pending application does not pause an existing creditor’s rights.

If consolidation is unsuitable, the process should stop rather than force a refinance. We can explain the lending issue and the alternatives to explore. Where the budget is unaffordable, free financial counselling through the National Debt Helpline can help with creditor discussions and other options.

Understand the costs and decisions along the way

The initial RepaymentCheck is free. A refinance can still involve lender setup or valuation costs, mortgage discharge and registration costs, existing-loan exit costs and other product-specific charges. Ask for the applicable written costs before committing. Costs added to the loan also attract interest.

Converting unsecured debts to borrowing secured against your home changes the risk. If repayments are not maintained, your home can be at risk. Consider the proposed total interest as well as the immediate repayment and keep any tax or legal questions with the appropriate qualified adviser.

You decide whether to progress after the proposed structure and costs are explained. Submission, approval and settlement are separate steps. Clarify obligations under signed documents before deciding to withdraw or change direction; do not assume an approved offer must be accepted or that an agreed contract has no consequences.

Your questions answered