Combine Home Loans? Here's How to Save Big (2026)

Are you juggling multiple home loans and wondering if there's a way to streamline your repayments? Combining home loans could be the solution you're seeking. This approach can simplify your financial management, potentially reduce overall interest costs, and free up cash flow. But how does it work, and is it the right move for you? Let's dive into the details.

Understanding Combining Home Loans

Combining home loans, often referred to as refinancing or debt consolidation, involves merging multiple existing loans into a single loan with one monthly repayment. This can make managing your finances easier and may reduce the total amount of interest you'll pay over the life of the loans. In Australia, this process can be particularly beneficial given the competitive mortgage market and the variety of options available.

Current Rates and Options

As of 2026, the Australian home loan market offers a range of interest rates, typically between 6.49% and 12%, depending on the lender and your financial situation. When considering combining home loans, it's crucial to understand the rates and terms available.

Lender	Interest Rate Range	Features
Lender A	6.49% - 8.75%	Flexible repayment options, offset account available
Lender B	7.00% - 9.50%	No annual fee, redraw facility
Lender C	7.25% - 10.00%	Fixed and variable rate options

With access to over 83 lenders, Esteb and Co can help you navigate these options to find a loan that suits your needs.

Steps to Combine Home Loans

Here's a step-by-step guide to help you combine your home loans effectively:

1. Assess Your Current Loans: Gather details about your existing loans, including interest rates, fees, and remaining balances.
2. Calculate Potential Savings: Use a loan calculator to determine possible savings from refinancing.
3. Check Your Credit Score: A strong credit score can help you secure better rates.
4. Research Lenders: Compare offers from different lenders, taking into account interest rates, fees, and features.
5. Consult a Mortgage Broker: An experienced broker, like those at Esteb and Co, can provide tailored advice and assist with negotiations.
6. Apply for the Loan: Once you've chosen the best option, submit your application with the required documentation.
7. Finalise the Process: Upon approval, your new lender will pay off your existing loans, consolidating them into a single repayment.

Tips and Considerations

Before proceeding, consider the following tips:

• Be Aware of Exit Fees: Some loans may have exit fees that could offset the benefits of combining loans.
• Consider Loan Features: Look beyond interest rates to consider loan features that suit your lifestyle.
• Factor in Break Costs: If you’re on a fixed-rate loan, breaking the loan early could incur additional costs.
• Plan for the Long Term: Ensure the new loan aligns with your long-term financial goals.

Frequently Asked Questions

• Is it always beneficial to combine home loans? Not necessarily. It's essential to evaluate the total cost, including fees and interest, to determine if it's beneficial for you.
• Can I combine investment property loans with my home loan? Yes, but ensure the combined loan structure suits both personal and investment financial goals.
• How does combining loans affect my credit score? Applying for new loans might temporarily affect your credit score, but successful consolidation can improve it by showing consistent repayments.
• What documents do I need to combine home loans? Typically, you'll need proof of income, details of existing loans, and identification documents.
• How long does the process take? The process can take anywhere from a few weeks to a couple of months, depending on the lender and your financial situation.
• Can Esteb and Co help negotiate better terms? Yes, with access to over 83 lenders, our brokers can negotiate on your behalf to find favourable terms.