Home Loan

Your home loan should be reviewed regularly to ensure it meets your needs. If your circumstances have changed, you may be able to find a better type of loan that suits you better. You can also renegotiate the terms of your loan to make it more suitable for your current situation.

Here are three instances you should consider making this move:


1. Consolidating Credit Card Debt

If you have a lot of credit card debt, it might be a good idea to pay it off by adding it to your home loan. This way, you'll be less likely to use credit cards and get into more debt.

Credit card debt is usually charged at a higher interest rate than a mortgage, so it can be beneficial to consolidate that debt into a mortgage. However, you may pay more interest overall because the debt will be spread out over a longer period.

If you have a lot of debt on your credit card, you can still make payments on time and not damage your credit rating.


2. Breaking Out of a Fixed-Rate Loan

If you have a fixed-rate loan and interest rates have decreased, you may want to consider refinancing your loan to get a lower interest rate. If you try to leave your fixed-rate mortgage early, your lender might charge you a break fee. Talk to your mortgage advisor to see if it's worth it before you do anything.

There may be instances where you need to break your fixed-rate loan agreement to achieve a better financial outcome. In these cases, you can roll the break fee into your mortgage so that you don't have to come up with the cash upfront. This will extend your repayment time but could be worth it in the long run.

Refinancing your home loan could save you money each month on your repayments. This extra cash flow could be helpful, especially during tough economic times like we're experiencing with inflation.


3. Buying an Investment Property

A restructure changes the amount you owe, the interest rate, or the mortgage term. This can be done by refinancing your mortgage or by adding on to your mortgage. You could take out extra money on your home loan to buy an investment property. The extra money would be in addition to the money you still owe on your home loan.

You can use your existing home loan and investment property to consolidate your debt. This would involve using both properties as security for the new loan and restructuring your existing loan to secure it against both properties. You may not need to come up with extra cash for a deposit on an investment property. You may be able to cover extra costs, like stamp duty and conveyancing, with the money you make from renting out the property.

If you sell either property you have taken out a loan for, you will have to pay back that loan in full. This option should be carefully considered, as it could mean selling both properties. If property values fall, this will be especially difficult. Both properties could be at risk if you experience financial difficulties in the future.


Restructuring your home loan can be a great way to save money and become mortgage-free faster. It is important to consider your current financial situation and goals before making a decision. You should also speak to a financial advisor to get expert advice.

Wealthy You is an Australian mortgage company servicing Sydney for almost a decade, offering various mortgage solutions to meet the specific financial needs of every client. As an alternative lending specialist, we can make refinancing your home simple. If you want access to the best home loans in Sydney, get in touch with us! We look forward to meeting you.