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What is a Debt Reconciliation Loan?

Life can throw you curveballs. Losing a job, changed relationship status or unexpected health issues may mean you can no longer keep up with your loans. Taking our a personal loan or applying for another credit card may seem like the answer, but long term the additional debt may not be manageable.

This is where a debt reconciliation loan comes in.

Refinancing to a debt consolidation loan allows you to combine your debts into one. Your loans – credit card and personal – are rolled together and paid under your mortgage. You have one, much more manageable monthly repayment, charged at your home loan interest rate, which could be significantly lower than the interest rate on your credit card or personal loan.

What You Need to Know

Before entering into a debt reconciliation loan, it is important to ensure the loan is structured correctly by a licensed mortgage broker. A poorly structured loan could turn short-term debts into long-term debts and see you paying even more in interest over the life of the loan.

When Should I Consider Switching?

  • Changed Circumstances

Things change, sometimes unexpectedly. A mortgage that suited you when you first entered the housing market may no longer fit your lifestyle.

  • Increased Interest Rate

Your bank has increased your interest rate to a point that makes monthly repayments no longer manageable.

  • Unmanageable Repayments

Credit card bills taking over your finances? By rolling together all your loans into one, you could save thousands of dollars in interest.

  • You Have a Sub-Prime Mortgage

You entered the housing market using a sub-prime mortgage, but now your circumstances have changed and you’re eligible for a superior mortgage.

  • You Want to Release Equity

You’re looking to access some of your equity – maybe to buy a new car, do the long-awaited renovation on your home or take a family holiday.

  • Multiple Loans, Multiple Repayments

Between personal loans and credit cards, you’re making multiple monthly repayments to too many different lenders and paying high interest rates.

Debt Reconciliation Client Testimonials


“I don’t think I would have attempted to go through the rigmarole of refinancing the loan if we didn’t have Andrew to facilitate the process, which can be arduous and confusing. Andrew explained the terms and conditions of each contract and patiently answered all our questions with the set up, repayment and internet banking process.

We have since considered looking at purchasing an investment property and thanks to Andrew, we understand the different ways we can structure our loan.”


“Took all the stress out of this highly complicated process and we are very happy with the outcome.”


“Excellent, professional service, very supportive helpful and friendly, thanks heaps for the great help.”

Contact Impact Home Loans today to find out how a debt reconciliation loan could save you thousands.