Can I consolidate debt into my mortgage?

Life is expensive, and many people find it difficult to manage their finances and various debts. If you are having difficulty with paying a range of debts, with varying due dates and amounts, you might be wondering if you can consolidate debt into your mortgage. In this blog, we will examine the strategic approach of consolidating your debt, how to do it, and if it is a good idea to consolidate it into your mortgage.

What is debt consolidation?

The term debt consolidation refers to the process of combining debts into one loan. This means paying for all of your outstanding debts on one set date, and it may lower the overall interest you’re paying on that combined debt. 

Can I consolidate debt into my mortgage?

One option for consolidating debt is adding your other debts into your existing mortgage. This is something that you can discuss with your broker, to find out if it is the right move for you and your situation. 

Should I consolidate debt into my mortgage?

When considering whether you should consolidate your debt into your mortgage, it’s important to weigh up the pros and cons. 


  • Streamlining debt into one manageable repayment.
  • If your mortgage has lower interest rates than your existing debtors, your overall interest for those repayments should be reduced.
  • You will potentially lengthen the amount of time you have to repay the other debts.

Things to consider:

  • Consolidating other debts into your mortgage will, of course, increase your overall mortgage balance.
  • There may be fees involved with consolidating your debts.
  • Debt consolidation does not teach financial discipline, and you don’t want to accumulate new debts after consolidating your existing debts into your mortgage.
  • Although your interest rate may be lower, it’s important to consider the fact that since you’re likely lengthening the repayment period for these debts, you may actually end up paying more interest.

How do I consolidate my debt into my mortgage?

If you think consolidating other debts into your existing mortgage is the right solution for you, the next step is to contact a mortgage broker for advice. Our team of expert brokers can help you. Book an appointment with one of our Borro brokers today or call the team on 1300 1BORRO.

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