Mortgage refinance and debt consolidation

Four debts, four interest rates, four repayment dates — or one home loan repayment at one rate. Consolidating debt into your mortgage can shift hundreds, sometimes thousands, back into your monthly cash flow. The trade-off matters too, and we will show you both sides.

80% LVR cap50+ lenders comparedCommission paid by the lender

Stryve broker reviewing debt consolidation options with an Australian homeowner

We compare your rates with 50+ lenders

What can be consolidated

Which debts a lender will roll into your home loan

Not all debt types are treated equally. Some are accepted across the board, others depend on which lender you apply to. The mix you bring to the application determines how many lenders are available to you.

Credit cards and personal loans
All lenders
Accepted by virtually all lenders. These are the most common debts rolled into a debt consolidation home loan and the easiest to model for break-even.
Car loans
Most lenders
Accepted by most lenders, with minor policy variations. Some require the car loan to be discharged at settlement; others release funds for you to manage. Confirm the mechanism before settlement day.
ATO debt
Lender-specific
Restricted to specific lenders. Many refuse it outright. Lender selection is the difference between a full consolidation and being left to manage the ATO repayment separately.
Business debt
Restricted
Fewer lenders accept business debt in debt consolidation mortgages, and those that do often cap the amount. Self-employed borrowers especially benefit from broker matching here.
BNPL (buy now, pay later)
Lender-dependent
Some lenders treat BNPL as a liability only and require it to be closed. Others allow the balance to be consolidated. Treatment is evolving and varies by lender.

If your bank refuses ATO or business debt, a partial consolidation can leave you managing two repayment streams instead of one. This is exactly where broker access across 50+ lenders changes the outcome.

Do you qualify, and do the numbers stack up?

Before you book a call, here are the specific thresholds lenders use to assess a refinance home loan debt consolidation application. If you meet these criteria, consolidation is worth modelling. If you are borderline, a broker can identify which lenders have more flexible policies.

Loan-to-value ratio (LVR)

Most lenders require your LVR to stay at or below 80% after the consolidated amount is added. If your property is worth $750K and the new loan is $535K, your LVR is 71.3% — within range. Some lenders allow up to 90% LVR with LMI, but the premium adds thousands and must factor into break-even.

Serviceability buffer

APRA requires lenders to assess you at the loan rate plus 3 percentage points. On a $535K loan at 6.2%, you are tested as if the rate were 9.2%. This is the test that catches borrowers who qualify at the actual rate but fail at the buffer rate.

Switching costs

Refinancing involves discharge fees from your current lender, a property valuation, settlement and legal fees, possible LMI if your LVR exceeds 80%, and possible break costs if you are on a fixed rate. All factor into the break-even calculation.

Break-even calculation

Divide your total switching costs by your monthly saving to find how many months it takes to recover them. Costs of $2,500 and a saving of $1,280 per month break even in under 2 months. Costs of $8,000 (including LMI) extend break-even to about 6 months.

The trade-off

Will you pay more interest overall? Probably, unless you do this.

Roll $55K of short-term debt into a mortgage with 27 years remaining and you are paying interest on it for decades instead of years. Even at 6.2% versus original rates of 9.5% to 21%, the total interest on that $55K portion climbs. Moneysmart (ASIC) warns that debt consolidation can cost more overall if the debt is stretched over a longer term.

Deciding whether to consolidate at all, and how a home loan compares with a personal loan or simply attacking the debt directly, is a separate question. If you're still weighing the options, start with our debt consolidation home loan vs personal loan comparison. This page is for when you've decided the home loan path fits and want to see how the execution works.

Original cost

$18K–$22K interest

Paying $55K across the original credit card, car loan, and personal loan terms (2 to 5 years).

Stretched cost

~$52K interest

Same $55K spread over 27 years at 6.2%. Roughly $30K more than the original total, even at the lower rate.

The fix

Pay at the old combined rate

Keep paying $4,810/month (the old combined total). The extra $1,280 attacks the principal and clears the $55K in 4 to 5 years.

Loan split structuring makes this practical: the consolidated portion is set up as a separate split from your original mortgage, with its own balance and repayment target. You target it aggressively without changing the minimum on the original loan. Read more about debt consolidation warnings on Moneysmart.

Credit card debt consolidation: a worked example

Credit card debt is the most common reason Australians look into consolidation. The rate gap between a credit card and a mortgage makes the monthly saving immediate and visible. Here is what a $25K credit card balance looks like before and after, and what the pay-at-old-rate strategy does to the total cost.

$25,000 credit card debt at 21% → rolled into a 6.2% mortgage, with the split paid at the old card rate.

Before consolidation

Minimum repayment: approximately $625 per month. At minimum repayments, this balance takes over 30 years to clear and costs more than $40,000 in interest. The card carries on quietly bleeding cash flow every month.

After consolidation, at minimum

The $25K is rolled into your mortgage at 6.2%. The repayment on that $25K portion, spread over the remaining 27-year term, is approximately $165 per month. Monthly saving: $460. But total interest over 27 years on that $25K portion is approximately $24,000.

After consolidation, paid at old rate

Maintain the $625 monthly repayment against the $25K loan split. At that level, the split clears in approximately 3.5 years. Total interest: roughly $2,800 — a fraction of what the credit card would have cost. The monthly saving turns into real savings, not deferred cost.

Behavioural guardrails

Moneysmart warns that consolidation can lead to deeper debt if new credit is accessed afterwards. Closing or reducing limits on paid-out cards is a practical step, not a moral judgment. If your credit file has been affected by past missed payments, some lenders still approve — read more on refinancing with bad credit below.

Want to see your numbers, not these?

Book a free 15-minute consolidation review. A Stryve broker maps your debt mix to the right lender, models the pay-at-old-rate scenario, and tells you the break-even before you commit.

Book a strategy call

Why broker access changes the outcome

The lender you choose determines whether all your debts are accepted, how settlement works, and whether the loan is structured to protect you. Our commission comes from the lender once your loan settles, not from you — and we will show you exactly how we are paid before you proceed.

Lender policy matching

Not all lenders accept all debt types. Some cap the number of debts consolidated. Others refuse ATO or business debt entirely. We match your specific debt mix to the lender most likely to approve the full consolidation from 50+ options, not a partial one that leaves you managing leftover repayments.

Settlement mechanics

Some lenders require debts to be paid out at settlement, with funds sent directly to your creditors. Others release funds to you and trust you to manage payouts. The first approach reduces risk and ensures debts are cleared. We confirm which method your lender uses before you commit.

Loan split structuring

The consolidated portion is structured as a separate loan split with its own balance and repayment target. You can attack it aggressively without changing the minimum repayment on your original mortgage. The split is the mechanism that makes the pay-at-old-rate strategy practical.

Complex situations handled

ATO debt, business debt, high LVR, self-employed income, impaired credit. These are situations we work with regularly, not edge cases we turn away. Specialist expertise for borrowers other brokers overlook is a core part of what we do.

Keep exploring
consolidation

From the full cost of switching to refinancing with imperfect credit, here is what to read next.

What it costs to refinance

Discharge fees, valuation, settlement, LMI, and break costs — what to expect and how to budget for them.

Refinancing with bad credit

How lenders assess credit-impaired refinance applications and which specialist lenders may still approve.

Should I refinance in 2026?

An honest look at whether refinancing your home loan is worth it in the current rate environment.

Reasons to refinance

Common motivations beyond rate savings, from renovations to consolidating debt.

Refinance home loan rates

How refinance rates are set and what to compare before you switch lenders.

What our customers
say about us

Don't just take our word for it. See what hundreds of satisfied clients across Sydney say about their experience with Stryve Finance.

“We had a great experience with Dylan and the team. Very professional and they took care of everything. We will definitely go through Stryve in the future.”

Carrissa Huisman

Google review, 27 Oct 2026

“Best in the business! Dylan and the team made getting my home loan simple and stress-free. They were attentive, responsive, and always kept me in the loop. Highly recommend!”

Zeki Ismen

Google review, 22 Oct 2026

“The team is awesome. Douglas and Dylan, are very thorough and are generous with their time to explore the best product that meets my needs and when they cover all the details, they follow through to the last details ensure the transaction is complete. They will also check after the issue is settled to see if any more support is needed. Simply A service. Best wishes and am sure where to go fir my next mortgage or financial advice.”

Emil

Google review, 13 Oct 2026

“Dylan and his staff have been fantastic, they have made the process very easy and stress free. They walk through everything with you from start to finish and guide you to the best options. Thank you guys much appreciated”

Paul Coleiro

Google review, 22 Sept 2026

“Dylan and the Stryve Team have been so amazing during our search for a first home. Dylan was so communicative, patient and knowledgable and kept us updated throughout the whole process. I can’t recommend them enough!”

Michael O'Malley

Google review, 30 Aug 2026

“My partner & I have had a fantastic experience with Stryve Finance. Dylan and Douglas were incredibly helpful, responsive and supportive throughout the entire process. We’re very grateful for their help and would highly recommend Stryve to anyone looking for a reliable and knowledgeable mortgage broker.”

Tanvi Mara

Google review, 19 Aug 2026

“Dylan and the team at Stryve are exceptional. He made the process so easy to understand and helped secure the loan I was after. A special mention to how efficient the team are and can move things really quickly when needed. Can’t thank them enough for everything they’ve done. Strongly recommend if you’re looking for a first class mortgage broker!”

JAMES HARVEY

Google review, 18 Aug 2026

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Debt consolidation: common questions

Credit cards and personal loans are accepted by virtually all lenders. Car loans are accepted by most. ATO debt, business debt, and BNPL are lender-specific: some accept them, others refuse outright. This is where broker access to 50+ lenders matters. If your bank refuses a specific debt type, another lender may accept it. We identify which lenders match your debt mix before submitting an application.

Most lenders require your post-consolidation LVR to stay at or below 80%. Some allow up to 90% with Lenders Mortgage Insurance (LMI), but the LMI premium adds to your switching costs and must be included in the break-even calculation. If your property is worth $750K and the consolidated loan is $535K, your LVR is 71.3%.

If you drop to the new minimum repayment, yes. Stretching short-term debt over a 25 to 30 year mortgage term increases total interest even at a lower rate. Moneysmart (ASIC) confirms that a refinancing deal that looks attractive on the surface can cost more overall. The fix: maintain repayments at the old combined level and structure the consolidated portion as a separate loan split. This clears the consolidated debt in 4 to 5 years instead of 27, and total interest drops back close to the original cost.

Switching costs include discharge fees, valuation fees, settlement fees, possible LMI, and possible break costs if you are on a fixed rate. Divide total switching costs by your monthly saving to find your break-even point. If costs total $2,500 and your monthly saving is $1,280, you recover costs in under 2 months. See the refinance costs page for the full breakdown.

APRA's buffer means lenders assess you at the loan rate plus 3 percentage points. On a $535K loan at 6.2%, you are tested at 9.2%. If you fail at this level, options include: negotiating a debt restructure with your current lender, applying for a hardship variation, or working with specialist lenders who assess serviceability differently. A broker can identify which lenders apply the buffer with more flexibility for your specific income structure.

The refinance application creates a credit enquiry on your file. This is a minor, temporary factor. Missed payments on existing debts are already recorded and will remain visible for the standard reporting period regardless of whether you consolidate. Paying out debts in full through consolidation can improve your credit profile over time by reducing the number of active liabilities and eliminating ongoing missed payment risk.

Some lenders accept ATO debt as part of a consolidation refinance. Others refuse it entirely. The willingness varies by lender policy, and it changes over time. This is one of the specific scenarios where broker access across 50+ lenders produces a materially different outcome than approaching your own bank. We identify which lenders currently accept ATO debt and whether your situation meets their criteria.

See if consolidation saves you money

We run the numbers for your specific debts, LVR, and income. If consolidation works, we match your debt mix to the right lender from 50+ options. If it does not, we tell you. No surprises, no pressure.

Book a strategy call Check your borrowing capacity

Mortgage refinance and debt consolidation

Which debts a lender will roll into your home loan

Credit cards and personal loans

Car loans

ATO debt

Business debt

BNPL (buy now, pay later)