Debt consolidationhome loan

A debt consolidation loan can be a powerful tool, but it's not a one-size-fits-all solution. Consider these factors: Will you secure a lower interest rate, simplifying your finances and potentially saving money?  Can you comfortably afford the new monthly payment?  Do you have a plan to avoid future debt? If you're unsure, Yard’s friendly team can help answer any questions you have about debt consolidation to ensure this loan aligns with your goals.

Consolidating debt within your mortgage loan could improve your credit score in the long run. It simplifies your repayments, reducing the risk of missed payments that hurt your credit score. Additionally, consolidating your debt may lower your overall credit utilisation ratio (debt compared to credit limit), which is a factor in credit scores. This ratio compares your total credit card balances to their credit limits. Lower utilisation, typically below 30%, demonstrates responsible credit management and positively impacts your credit score. Multiple credit applications can also negatively impact your credit score. Overall, responsible management of your consolidated debt can lead to a healthier credit score.

Getting approved for a debt consolidation loan depends on your individual financial situation. Yard considers factors like your credit history, income, and employment stability. We offer resources to help you assess your eligibility and understand the approval process. If you're unsure, don't hesitate to contact us – we're here to help you find the best debt consolidation solution for your needs.

Your borrowing capacity is determined by factors like your income, expenses, existing debts, and the amount of equity in your property. Some home loan products may have restrictions on the number of debts you can consolidate.

We will look at a number of criteria when assessing your application, including:
- Good repayment history of your loans over the past 3 months
- Good credit history
- Ability to service the new loan assessed through a borrowing capacity test
- Sufficient equity in your home, up to 80% LVR; otherwise you will have to pay lenders mortgage insurance (LMI) 

You can use our online calculator to work out how much you could borrow.

Our debt consolidation loans offer flexible repayment terms - you can make monthly, fortnightly or weekly repayments. This means you can choose a repayment schedule that aligns with your budget and financial goals. However, the specific interest rate and repayment amount will depend on your individual circumstances, including amount of equity in your property, loan amount and credit history. You can review our current product interest rates here.