Refinancing Your Car Or Asset Finance

  • Refinancing Your Car Or Asset Finance

Refinancing Your Car Or Asset Finance: When Rolling Into A Home Loan Makes Sense (And When It Doesn’t)

Many borrowers wonder whether to wrap vehicles and business equipment into their home loan or keep them separate.

Lower payments feel good – but the true cost depends on the term

Looking only at the monthly figure can be misleading.

Suggested Sections

  • Options for existing car and asset finance
  • Keep the current facility.
  • Refinance to a new dedicated car/asset loan.
  • Consolidate into a home loan.
  • Pros and cons of rolling into a mortgage
  • Pros: Lower interest rate and one repayment.
  • Cons: Long term means potentially higher total interest.
  • When to keep separate loans
  • Business vehicles and equipment that match a shorter asset life.
  • When clear separation helps for tax and accounting purposes.
  • How to assess the real numbers
  • Compare total cost over the remaining term vs over the proposed mortgage term.
  • Consider how quickly you intend to pay extra and clear the consolidated amount.
  • Designing a smart repayment plan
  • Use separate splits or tracking to pay the “car” portion faster than the 30-year term.
  • Set automatic extra repayments or offset targets.