The Challenge

Mark and Sarah were a hardworking couple with a steady combined income and a home they loved. Over the years, though, life had added up. Between a credit card balance, a personal loan taken out for home improvements and a car loan, they were juggling several repayments on top of their mortgage.

Each debt carried its own interest rate, and the credit card and personal loan rates were far higher than their home loan rate. Although they were never behind on their payments, a large share of their income was disappearing into interest each month, leaving little room for savings or unexpected costs.

They wanted a simpler, more affordable way to manage their finances, without selling their home or sacrificing their lifestyle entirely.

Finding the Right Solution

After mapping out every debt, its balance and its interest rate, our broker could see the real issue. Mark and Sarah were paying high interest on their consumer debts while sitting on a healthy amount of equity in their home.

Because their property had grown in value and their home loan balance was comfortably below its worth, they had enough equity to refinance and roll their other debts into a single home loan at a much lower interest rate.

We compared lenders to find one offering a competitive rate and a loan structure that suited their goals. We also talked them through an important trade-off. Spreading shorter-term debts over a longer loan term lowers the monthly cost, but it can increase the total interest paid over time unless extra repayments are made. With that in mind, we set up the loan so they could make additional repayments without penalty.

The Application Process

We gathered statements for each existing debt, along with proof of income and details of the property, then prepared a clear application showing how consolidation would improve their overall position.

Lenders look closely at debt consolidation applications, so we presented a complete picture of the couple’s finances and the new, lower repayment they would comfortably manage.

The application progressed smoothly, and the lender issued approval to refinance the home loan and pay out the existing debts at settlement.