For homeowners with multiple sources of debt, the idea of bundling several financial obligations into one loan may be tempting.
Instead of having to keep on top of credit card and personal loan repayments, all their debts can instead be funneled through their home loan.
However, debt consolidation home loans are not for everyone. In some cases, borrowers end up paying more in interest and fees.
The lender may also require additional security to protect them against borrower default, which wouldn’t often be the case with a credit card or another unsecured loan type.
It comes down to personal circumstances and preferences, but for the right type of borrower, debt consolidation home loans could be worth investigating.