Equity & consolidation

Put your equity to work.
Simplify your debts.

Your home is likely your largest asset — and the equity built up in it can be a powerful tool. Whether you want to access that equity for a specific purpose or bring multiple high-rate debts under one roof, we structure the approach so it genuinely improves your financial position.

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What this service covers

Equity release — accessing the usable equity in your home through a cash-out refinance or equity loan for renovations, investment deposits, education or other purposes.

Debt consolidation — rolling high-interest personal loans, credit cards and other debts into your home loan to reduce your monthly outgoings and total interest paid.

Combined restructuring — simultaneously releasing equity and restructuring existing debts into a single, well-structured loan that reduces complexity and cost.

Two paths, one specialist

Equity release or debt consolidation — or both.

These two strategies are often used independently but can also be combined into a single restructuring that addresses both goals at once.

Path 01

Equity release

Equity is the difference between your property's current market value and the outstanding balance on your mortgage. As your property grows in value and your loan reduces, usable equity accumulates — and it can be accessed without selling the property.

Most lenders allow you to access equity up to 80% of your property's current value without triggering Lenders Mortgage Insurance. We calculate your usable equity precisely, assess your serviceability for the higher loan amount, and structure the release cleanly — either through a cash-out refinance of your existing loan or a separate equity loan facility.

Common uses for released equity
  • Investment property deposit
  • Home renovations or extensions
  • Funding a business or business purchase
  • Education expenses — university or private school fees
  • Vehicle purchase at mortgage rates
  • Emergency buffer or opportunity fund
  • Paying down non-deductible debt strategically
Path 02

Debt consolidation

Personal loans, credit cards, car finance, buy-now-pay-later and store cards typically carry interest rates between 12% and 25% — significantly higher than home loan rates. Consolidating these debts into your home loan can dramatically reduce the total interest you pay and simplify your monthly cashflow into a single repayment.

However, consolidation is not always the right move. Rolling a short-term debt into a 30-year mortgage can mean paying more over time, even at a lower rate. We model the full cost — including repayment term adjustments — before recommending any consolidation.

Debts commonly consolidated
  • Credit cards and store cards
  • Personal loans
  • Car loans and vehicle finance
  • Buy-now-pay-later balances
  • Tax debts (in some circumstances)
  • Medical or legal payment plans
  • Family or private loans
How equity works

Understanding your usable equity

Not all equity can be accessed. Most lenders cap borrowing at 80% of your property's current value — the amount above your outstanding loan balance and below that 80% threshold is your usable equity.

For example: a home worth $900,000 with a $500,000 outstanding loan has $400,000 in total equity. But usable equity is calculated as ($900,000 × 80%) − $500,000 = $220,000. That $220,000 can be accessed without incurring LMI.

Accessing equity above 80% LVR is possible but requires Lenders Mortgage Insurance — we'll calculate whether the cost is justified by the purpose.

Example — $900,000 property, $500,000 loan

Property value
$900,000
Outstanding loan
$500,000
80% LVR ceiling
$500,000
$220,000 usable
Total equity
$500,000
$220,000
$180,000 locked

The $180,000 above 80% LVR can be accessed but triggers Lenders Mortgage Insurance. We calculate the LMI cost against the purpose to determine whether it makes sense.

Consolidation example

What consolidation can look like in practice.

Illustrative example only. Individual outcomes depend on loan terms, lender rates and repayment behaviour.

Before consolidation

Home loan — $550,000 @ 6.5%$3,480 / mo
Personal loan — $25,000 @ 14%$580 / mo
Credit card — $18,000 @ 21%$540 / mo
Car loan — $32,000 @ 9%$660 / mo
Total monthly outgoings$5,260 / mo

4 separate repayments, 4 lenders, 4 direct debits, variable rates across all.

After consolidation

Consolidated home loan — $625,000 @ 6.5%$3,954 / mo
Personal loanCleared
Credit cardCleared
Car loanCleared
Total monthly outgoings$3,954 / mo

1 repayment, 1 lender, $1,306 / month cashflow improvement. Total interest saving depends on repayment term and behaviour.

An important consideration

Consolidating shorter-term debts (a 3-year car loan, a 5-year personal loan) into a 30-year mortgage reduces your monthly repayment but can significantly increase the total interest paid over the life of the loan — even at a lower rate. We always model both the short-term cashflow benefit and the long-term cost before recommending consolidation. In many cases, we suggest increasing your repayment slightly above the minimum to capture both the cashflow benefit and avoid long-term interest drag.

Our process

How we approach it

A thorough review before any recommendation — we never suggest equity release or consolidation without modelling the full picture.

I

Financial position review

We map your current loans, debts, income, property value and equity position — building a complete picture before suggesting any course of action.

II

Modelling & options

We model the full cost of each scenario — equity release amount, consolidated loan structure, repayment term adjustments and total interest impact — so you can make an informed decision.

III

Lender selection

We compare lenders on rate, cash-out policy, LMI thresholds and flexibility — selecting the option that best matches your equity release or consolidation structure.

IV

Settlement & beyond

We manage the application through to settlement, ensure debts are cleared correctly and check in regularly to review whether the new structure continues to serve your goals.

Why FinanceOnly

We model the full picture
before making any recommendation.

Equity release and debt consolidation are powerful tools — but they're only beneficial if the numbers genuinely work in your favour. We run a full cost-benefit analysis on every scenario, not just the monthly cashflow improvement.

  • Full long-term cost modelling — not just monthly savings
  • MFAA accredited — independent advice, no lender bias
  • Australian Credit Licence holder since 2007
  • 30+ lenders — identifying best cash-out and consolidation rates
  • We'll tell you if it doesn't make sense — obligation-free
  • Repayment strategy advice included — not just structuring

We'll tell you if it doesn't stack up

Some clients come in expecting to consolidate and leave better off without doing so — because the break costs, LMI or long-term interest outweigh the short-term benefit. We'd rather tell you that clearly than place a loan that costs you more.

Cashflow improvement and long-term cost

We model both simultaneously — the immediate repayment reduction and the total interest paid over the remaining loan term. Most clients find a repayment slightly above the new minimum captures both benefits.

Equity release with a plan

Released equity is most effective when it has a clear purpose — whether that's a property deposit, a renovation that adds value, or debt reduction with a defined payback timeline. We help you articulate the plan before drawing the funds.

Common questions

Frequently asked questions

How much equity can I access from my home?
Most lenders allow you to borrow up to 80% of your property's current market value without paying Lenders Mortgage Insurance. Your usable equity is calculated as: (current property value × 80%) minus your outstanding loan balance. Going above 80% LVR is possible but triggers LMI, which we factor into the cost analysis. We obtain a current valuation as part of the process to ensure the calculation is accurate.
Is debt consolidation always a good idea?
Not always — and we're transparent about this. Consolidation is beneficial when the interest rate reduction is significant and you actively increase your repayments above the new minimum to avoid extending the debt over a longer term. If you consolidate a 3-year car loan into a 30-year mortgage and only make minimum repayments, you may end up paying far more in total interest despite the lower rate. We model both scenarios and recommend a repayment strategy alongside the consolidation.
Will I need a new property valuation?
Yes — lenders require a current valuation to determine how much equity you can access. Depending on the lender and loan size, this may be a desktop valuation (automated), kerbside valuation, or full internal valuation. We manage the valuation process as part of the application. If the valuation comes in lower than expected, we'll reassess the available equity and adjust the strategy accordingly.
Can I consolidate debts without refinancing my entire home loan?
In some cases, yes — depending on your current lender's policy, you may be able to top up your existing loan or establish a separate equity loan facility without a full refinance. This avoids break costs (on fixed loans) and discharge fees. However, if your current lender's rate is no longer competitive, a full refinance to a new lender while consolidating may deliver a better overall outcome. We assess both options before making a recommendation.
Are there tax implications for releasing equity?
There can be — particularly if you're using released equity for investment purposes. Interest on funds used to generate income (such as an investment property deposit or shares) may be tax-deductible, while interest on funds used for personal purposes (renovations, car, holiday) is not. To maintain clean deductibility, it's important the funds are structured correctly — often in a separate split or loan account. We recommend discussing the tax implications with your accountant before drawing the funds, and we structure the loan accordingly.
How long does the process take?
For a straightforward cash-out refinance or top-up, the process typically takes 3–5 weeks from application to settlement — covering the valuation, credit assessment, lender approval and loan documentation. If consolidation involves paying out multiple lenders simultaneously, the settlement process is coordinated to clear those debts on the same day the new loan funds. We manage all of this on your behalf and keep you informed throughout.

Ready to explore your equity position?

Confidential consultation. Obligation-free.

Book a free consultation