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90 Marine Terrace Fremantle, WA, 6160

Debt Consolidation

Debt Consolidation
I’m Brodie Brown, Managing Broker here at BH Brown Mortgage Brokers. Based in Fremantle we specialise in home loans for a range of different situations and work with clients right Perth’s Western Suburbs.

debt consolidation EXPLAINED

Debt consolidation involves bringing your existing debts together into one new loan. The objective is to reduce the number of individual payments you make and reduce the interest rate you are paying on your more expensive debts.

I’m Brodie Brown, Managing Broker here at BH Brown Mortgage Brokers. Based in Fremantle we specialise in home loans for a range of different situations and work with clients right Perth’s Western Suburbs.
Debt Consolidation

debt consolidation EXPLAINED

Debt consolidation involves bringing your existing debts together into one new loan. The objective is to reduce the number of individual payments you make and reduce the interest rate you are paying on your more expensive debts.

debt consolidation

This may be something to consider if you are:

  • Managing multiple debt repayments and struggling to keep track of what is due and when.
  • Getting into a credit trap where all your spare income is used to pay interest, but you don’t have enough left over to reduce your debt balances.
  • You’re paying a very high interest rate on your debts—perhaps you have credit card or cash advance debts, or store credit purchases.

There are several possible strategies to consolidate debts, which can include:

  • Moving debts to a new credit facility (e.g. a personal loan or mortgage) with a lower rate of interest, or lower fees.
  • Lengthening the term of existing loans (e.g. taking a mortgage debt back out to the 30-year loan term).
  • Changing the repayment terms on an existing loan to interest only, or
  • A combination of these strategies.

Usually a debt consolidation strategy is implemented to make it easier for you to pay back your debts. However, in some instances, the objective of a debt consolidation may be to improve your cash-flow.

If you implement a debt consolidation strategy, it’s important to understand that it doesn’t reduce your debts—it just makes your repayments more manageable. A debt consolidation strategy should be implemented in combination with a change to your spending behaviour, so you can work to reduce your overall debt level over time. This should include creating a budget to ensure the debt consolidation measures work effectively and using a budgeting template such as the one available on ASIC’s MoneySmart website

What’s good about a debt consolidation

Simplicity: One loan repayment is a lot easier to manage and more convenient than juggling several different repayments.

Savings on interest and fees: Debt consolidation could potentially reduce the amount of interest you pay on high-interest facilities like credit cards and save you money on fees for multiple credit facilities. This may make it easier to pay back your debts.

Potential cash savings: This is potentially the biggest benefit of debt consolidation. By consolidating your debt into a loan charging a lower interest rate, you have the potential to save interest on monthly repayments and reduce your overall interest.

Lower repayments: Reducing the interest rate and spreading out repayments over time could potentially reduce the monthly repayment amount due.

Stress relief: Specialist lenders are available that may lend to you if you have missed repayments on your current debts, or if you have a poor credit history

Things to consider

For example:
If you have a $30,000 personal loan over a five-year term at 15% p.a. then this will cost you $12,822 in interest.
If you add this $30,000 debt to the balance of your mortgage instead, the same $30,000 at 5% over 30 years will cost you $27,977 in interest.

Higher costs: Long-term interest costs could be higher if you extend the loan term during a debt consolidation program. While it may reduce the size of the repayments in the short term, the overall amount repaid is far greater—particularly if you are consolidating your debts into a home loan which may have a 30-year term.

Increased credit access: If you’re not careful when consolidating your debts, you could make your financial situation worse. Remember to close your cleared credit facilities. For example, if you roll your credit card balances into your home loan to consolidate your debts, you might be tempted to continue using your credit cards and run up even more debt if you don’t close them.

Concentration of risk: Consolidating all your debt into your mortgage means that you have a lot at stake if interest rates rise. We recommend that you take advantage of all available cash to make additional repayments to pay off the refinanced debt as quickly as possible, or to start a savings account to build up a safety net.

Using up equity: Consolidating debts into your mortgage can also mean you are using up equity gained through paying down the balance or through an increase in value of the property. This means your returns will be reduced when you sell. Furthermore, consolidating your debts into your home loan can increase your loan-to- value ratio (LVR) above 80 percent. If this occurs, you will be required to pay Lenders Mortgages Insurance (or LMI). LMI can be expensive, so this may affect the savings you receive from refinancing your home loan to consolidate your debts.


To get started, call us during business hours on 08-9433-1312 or submit an online enquiry and one of the team will review your request and schedule a time to discuss in more detail.

Doing Finance Differently

It’s what BH Brown does differently to other brokers, banks, loan supermarkets and ‘no service’ digital lenders that ensures the Success of our Clients.

We are Professional Mortgage Brokers, committed to helping Our Clients purchase homes, investment property and projects.

We can arrange construction loans, unlock “hidden equity” to invest and restructure finance for a smooth transition to retirement.

BH Brown excels in solving large, complex, multi-property and multi-entity deals and has the Reputation to prove it.

  • We deliver wealth-focused mortgage and loan advice
  • We make things happen that our clients had been told weren’t able to be done
  • We are all about relationships
  • We take it personally
  • We have every available loan option from Banks to Private Lenders
  • We employ the latest software almost eliminating paperwork and forms
  • We take responsibility and control over the transaction
  • We work for our clients with a sense of urgency
  • We do whatever it takes to make the deal happen
  • We always talk in terms of Your success
  • We Guarantee Our Service

An Impeccable Reputation

Brodie and Josie were complete professionals throughout the whole process. He and his team really do what he says they will do and provide you the best service possible.
Peta Duncan
Love working with Brodie Brown and his team. Great advice and support. Make the whole process easy:)
Anne-Marie Erickson
My wife and I had the pleasure of working with Brodie Brown and his exceptional team for our first investment property purchase in Perth. From the moment we engaged with Brodie, we were impressed by his professionalism, efficiency, and depth of knowledge. Brodie and his team made the entire process seamless and stress-free for us. They provided continuous touch points throughout, ensuring we were always informed and reassured that everything was proceeding according to plan. Their attention to detail and commitment to excellence truly set them apart. We are incredibly grateful for Brodie's expertise and guidance throughout this journey. His dedication to finding the best mortgage solution for us was evident in every interaction we had. We wouldn't hesitate to recommend Brodie and his team to anyone in need of a mortgage, knowing they'll be in the hands of a true industry expert.
Jon Butler
It’s always a pleasure to have Brodie and the team at BH Brown manage our mortgages and finances. They have helped my partner and myself obtain mortgages, refinance, restructure and reorder to best suit our current and often changing needs. If ever we are unsure of something or have a question, just a quick phone call and one of the BH Brown team has us the answer, they never fail to offer us sound, practical and knowledgeable advice and outstanding service. Always the highest possible star rating for BHBrown Mortgage Brokers. I highly recommend them to anyone!
Chad Auth
I’d been on Brodie’s email list (downloaded AND read the book!) for about 6 months, when Troy telephoned to see how we were going and if we needed anything. I didn’t know it at the time but we were actually in a prime position to refinance our new house away from Keystart! I had no idea. So that’s what we did, with no lenders mortgage insurance required to boot! Troy is very friendly, very patient (we took longer than we should have with paperwork etc…) and very professional. The whole process was very easy and pain-free, and we never felt rushed or pressured to continue until we understood things. Troy has helped us out twice now with finance. He was away on holiday the second time, poor guy, and he still helped us out with cheerfulness. Many thanks Troy!! Oh, and I know full well that Brodie’s emails are marketing, but I really do enjoy reading them and learn from them, and I recommend that you sign up to his list!
Cameron Brown
Brodie and his team provide excellent service and advice, recommend them in a heartbeat.
Jason Wallis
Brodie and his team were awesome they listened to our circumstances and guided us through the whole process to get the result everyone wanted thoroughly recommend to al expat kiwis because he likes his rugby aswell thanks team
Megan Michelle
Did a free one off phone consult and Brodie was great in quickly assessing our situation and giving sound advice. Highly recommended.
Kevin Eipe
Brodie and the team did a great job of finding me the best loan for my situation, and they made the process easy. Highly recommend.
Tim Fisher
Brodie has been terrific over the last few years offering reliable property and mortgage advice. Highly recommended.
Jack Selva
Debt Consolidation
Debt Consolidation
Debt Consolidation