Personal Loan with Mortgage? Unlock Savings Fast (2026)

In today's complex financial landscape, managing multiple loans can be quite overwhelming. If you're juggling a mortgage alongside a personal loan, you might be wondering if there's a way to simplify your financial commitments. Combining these loans could potentially reduce your monthly payments and make your finances more manageable. But is it possible, and if so, how can you do it effectively?

Understanding the Combination of Personal Loans and Mortgages

Combining a personal loan with a mortgage is a process often referred to as debt consolidation. It involves rolling your personal loan into your existing mortgage or refinancing both into a new loan. This method can offer several benefits, such as a lower overall interest rate, reduced monthly payments, and streamlined finances. However, it also requires careful consideration to ensure it aligns with your financial goals and circumstances.

Current Market Rates and Requirements

As of 2026, the Australian mortgage market presents various interest rates and options. Mortgage interest rates typically range from 4.5% to 6.5%, while personal loan rates can vary significantly from 6.49% to 12%, depending on your creditworthiness and the loan terms.

When considering combining these loans, lenders will assess several factors, including your credit score, existing debt, and income stability. It's crucial to meet the eligibility criteria, which often requires a good credit score (usually 650 or above), a stable income, and sufficient equity in your home if refinancing.

Loan Type	Interest Rate Range	Typical Eligibility Criteria
Mortgage	4.5% - 6.5%	Good credit score, stable income, property equity
Personal Loan	6.49% - 12%	Good credit score, stable income

Steps to Combine Your Personal Loan with a Mortgage

Combining your personal loan with your mortgage can be a strategic move to simplify your finances. Here's a step-by-step guide to help you navigate this process:

1. Assess Your Financial Situation: Determine if combining your loans will truly benefit you financially. Consider consulting with a financial advisor or mortgage broker.
2. Check Your Credit Score: Ensure your credit score is in good shape, as this will impact the interest rates you're offered.
3. Evaluate Your Home's Equity: If refinancing, you'll need sufficient equity in your home to consolidate the debt.
4. Research Lenders: With access to 83+ lenders through Esteb and Co, explore various options to find the most favourable terms.
5. Apply for a Loan: Submit your application, providing all required documentation, such as income statements and existing loan details.
6. Review the Offer: Once you receive loan offers, carefully review the terms, including interest rates and fees.
7. Complete the Process: If satisfied with the offer, proceed with the loan consolidation to combine your debts.

Expert Tips and Considerations

Before proceeding with debt consolidation, consider the following expert tips:

• Consider Long-Term Costs: While monthly payments might be lower, extending your loan term could increase total interest paid over time.
• Factor in Fees: Be aware of any fees associated with refinancing or consolidating loans, such as exit fees or application fees.
• Stay Informed: Keep up-to-date with market trends and interest rates to ensure you're making an informed decision.
• Seek Professional Advice: Consulting with a mortgage broker from Esteb and Co can provide personalised guidance tailored to your financial situation.

Frequently Asked Questions

1. Can I combine any personal loan with my mortgage?
   While it's possible to combine most personal loans, it's essential to check with your lender for specific eligibility criteria and restrictions.
2. Will combining my loans affect my credit score?
   Refinancing or consolidating loans might temporarily impact your credit score, but it can improve over time with consistent payments.
3. Is debt consolidation always beneficial?
   Debt consolidation can simplify finances and reduce payments, but it's crucial to ensure it aligns with your long-term financial goals.
4. How does my home's equity impact my ability to consolidate?
   Sufficient home equity is often required for refinancing, as it helps secure the loan and determine the amount you can borrow.
5. What if interest rates rise after I consolidate?
   Consider fixed-rate options to protect against rising rates, or stay informed to refinance again if necessary.
6. Does Esteb and Co offer support for debt consolidation?
   Yes, Esteb and Co, with access to 83+ lenders, can assist you in finding the best solution for your financial needs.