Consolidate your home loan to combine multiple debts into a single, lower-interest mortgage.
Benefits:
✔ Lower overall interest rates.
✔ Reduce multiple payments into one manageable installment.
✔ Improve cash flow and financial stability.
✔ Boost credit score by clearing high-interest debts.
- How It Works:
Replace your existing mortgage with a new loan.
Adjust loan terms to fit your financial goals.
Use the extra funds to pay off high-interest debts (credit cards, personal loans, etc.).
Debt Consolidation Process
Getting to Know You
Initial Consultation & Goal Setting
- Understand your current debt situation and monthly financial commitments.
- Discuss your objectives—whether to reduce repayments, improve cash flow, or regain financial control.
- Explain how refinancing can be used to consolidate debt at lower interest rates.
Debt & Property Assessment
Review of Outstanding Debts
List down existing debts (credit cards, personal loans, etc.) with balances and interest rates.
Determine which debts can be cleared using cash-out refinancing.
Evaluate Home Loan & Property Value
Check current mortgage balance and the market value of your property.
Calculate available equity for cash-out, typically up to 90% of property value.
Consolidation Strategy & Loan Structuring
Tailored Refinancing Plan
Structure a new home loan that includes your current mortgage + debts to be settled.
Adjust loan tenure to keep monthly repayments manageable.
Bank Comparison & Rate Negotiation
Compare offers from Malaysian banks to find the best refinancing terms.
Negotiate for lower interest rates to maximize your savings.
Application & Documentation
Submit Loan Application
Submit a complete refinancing application with CreditSecure’s guidance.
Required Documents
Identity documents, income proof, credit report (CCRIS/CTOS), existing loan statement, property documents, and debt statements.
Approval, Disbursement & Debt Settlement
Loan Approval & Execution
Review the approved refinancing package and sign the Letter of Offer.
Finalize the loan agreement with your lawyer.
Disbursement & Debt Clearance
Existing home loan is settled.
Remaining balance (cash-out) is used to pay off credit card and personal loan debts directly.
Post-Consolidation Support
Monthly Repayment Setup
Consolidate all debt into one home loan with a single monthly repayment.
Set up auto-debit for seamless payments.
Credit & Financial Monitoring
Improve credit score with reduced debt exposure.
Receive ongoing advice to maintain financial health and avoid future debt accumulation.
Debt Consolidation Case Study
Mr. Daniel Wong
Property Value: RM800,000
Existing Loan Balance: RM400,000
High-Interest Debts: RM120,000 (Credit Cards & Personal Loans)
Objective: To reduce financial burden by consolidating debts into a lower-interest home loan.
Challenges
High monthly repayments across multiple debts.
Credit card interest at 15–18%, personal loans at 7–9%.
No clear path to regain financial stability.Debt Consolidation Strategy
Refinanced to RM550,000 (70% of property value)
Used RM150,000 cash-out to settle all high-interest debts.
Secured 3.85% interest rate—significantly lower than prior debts.
Reduced overall monthly commitments by RM1,200.Outcome & Benefits
Cleared RM120,000 in high-interest debts.
Reduced total monthly repayments and financial pressure.
Simplified payments into a single installment.
Boosted credit score and regained control over finances.Conclusion
Mr. Daniel Wong successfully consolidated his debts, lowered his financial burden, and regained control over his finances.
At CreditSecure, we are here to guide you every step of the way for a smooth, transparent, and stress-free home financing journey in Malaysia, we provide comprehensive Debt Consolidation Solutions.
