Refinancing Your Home Loans with High Credit Card Debt for Financial Relief
Pay Off Your High Credit Card Debt by Refinancing
Are you struggling with high credit card debt and feeling overwhelmed by multiple monthly payments? Credit cards charge 15%–18% interest, making it hard to break free from debt.
At Bluebricks, we help homeowners refinance their home loans to pay off high-interest credit card debt, secure lower interest rates, and reduce financial stress.
Why Refinance Your Home Loan to Pay Off Credit Card Debt?
Lower interest rates
Mortgage rates are 3.5%–5.5%, much lower than credit card rates.
Reduce monthly payments
Consolidate all debts into one affordable home loan repayment.
Improve your credit score
Paying off high credit card balances boosts your credit rating.
Increase financial flexibility
Free up cash flow for savings and other financial goals.
The Hidden Cost of High Credit Card Debt
Are you paying unnecessary interest?
Feeling overwhelmed by multiple payments?
Struggling with financial stress?
What is Home Loan Refinancing?
Refinancing basically replaces your current home loan with a new one—at a lower interest rate and better repayment terms.
If you have enough home equity, you can refinance for a larger loan amount and use the extra cash to pay off high-interest debts like credit cards.
How Does Debt Consolidation Work?
First, your home loan is refinanced at a lower interest rate. Then, you receive a cash-out amount to pay off your credit card balances. Instead of multiple payments, you now only have one lower mortgage payment.
Example 1 :
- Before Refinancing: RM100,000 in credit card debt at 18% interest → Monthly 1.5% interest = RM1,500
- After Refinancing: RM100,000 refinanced into a home loan at 4.5% interest annually → Monthly interest = RM375
- Total Interest Savings: RM1,125 per month
Example 2 :
- Before Refinancing: RM100,000 in credit card debt → Monthly 5% minimum payment = RM5,000
- After Refinancing: RM100,000 refinanced into a home loan at 4.5% interest (10-year tenure) → Monthly instalment = RM1,208.33
- Total Monthly Commitment Reduction: RM3,791.67 per month
Is Refinancing the Right Choice for You?
You Should Consider Refinancing If You:
- Have high credit card debt and want to lower your interest payments.
- Struggle with multiple monthly payments and need a simplified repayment plan.
- Want to reduce financial stress by consolidating all debts into a single loan.
- Have available home equity that can be used for refinancing.
You May Need Other Options If You:
- Have a low credit score and may not qualify for refinancing.
- Have insufficient home equity to support a cash-out refinance.
- Are unable to commit to a new mortgage repayment plan.
Key Benefits of Refinancing Your Home Loan with Bluebricks
Lower Interest Rates & Monthly Payments
Mortgage rates are lower than credit card rates. Refinancing helps you:
- Reduce monthly debt payments.
- Pay off high-interest balances faster.
- Save thousands on interest over time.
One Affordable Payment Instead of Many
Managing multiple debts is stressful. Refinancing combines all payments into one lower mortgage payment, making financial management easier.
Improve Your Credit Score
High credit utilisation lowers your credit score. By paying off credit cards with a refinance loan, your score can improve within months, making it easier to apply for future loans.
No Upfront Fees & Transparent Process
We act as your intermediary, not a direct lender. Unlike some agencies that charge hidden fees, Bluebricks operates on a results-based model—you only pay once your refinancing is approved.
Faster Approval & Expert Loan Resubmissions
If you’ve been rejected by banks, we help you identify the issue and resubmit your loan application with a higher chance of approval.
Transparent Service Fees
At Bluebricks, we ensure clarity in our fee structure:
- No Upfront Costs: You pay nothing until your refinancing is approved.
- Service Fee Range: Our fee is 3%–7% of the approved loan amount, tailored to your situation (e.g., credit score, DSR, or AKPK involvement).
- Payment Timing: Fees are charged only after your refinanced loan is disbursed.
Example:
If you secure an RM200,000 refinanced loan with a 5% service fee, you pay RM10,000 only after receiving the funds.
You’re a Good Fit for Our Refinancing Services If You:
- Have had your loan application rejected and need expert guidance to get approved.
- Are struggling with high credit card debt and want a structured plan to consolidate and lower payments.
- Are self-employed or earn on commission, making it difficult to get approval due to income documentation issues.
- Want to combine multiple debts into one affordable home loan with better terms.
How Bluebricks Helps You Secure the Best Refinancing Plan
We Assess Your Financial Situation
• Review your credit score, DSR, and existing home loan.
• Check your home equity and refinancing eligibility.
• Identify the best debt consolidation strategy.
We Compare the Best Refinancing Offers
• Identify banks offering the lowest interest rates.
• Compare loan terms and processing fees.
• Help you avoid hidden costs and unfavourable loan terms.
We Prepare & Submit Your Loan Application
• Gather all necessary documents for fast approval.
• Resubmit your loan if previously rejected.
• Ensure a hassle-free and smooth process from start to finish.
We Negotiate the Best Loan Terms for You
• Work with banks to secure lower rates and better terms.
• Ensure your refinancing plan meets your financial goals.
We Guide You Through the Final Steps
• Help you finalise your refinancing agreement.
• Ensure you fully understand your new loan terms.
• Assist with loan disbursement and debt settlement.
Case Study
Wilson Wai Kit
Financial Advisor
With extensive banking experience, notably as a mortgage sales officer at UOB Bank, Wilson leverages his understanding of loan applications and approvals to offer financial insights and support to empower individuals to make informed decisions regarding their financial futures. Feel free to contact him for assistance with your financial needs!
Feel free to contact him for assistance with your financial needs!
Karl
Financial Advisor
Karl has a background in banking and real estate, with roles ranging from Mortgage Officer at UOB Bank to Director at Vestcom Realty. He’s skilled in managing mortgage loans and real estate projects and works closely with bank officers, money lenders, and lawyers to solve clients’ loan issues.
Karl is currently a key contributor to business loan development at Bluebricks.
Refinancing Home Loans with High Credit Card Debt - FAQ
Refinancing replaces your mortgage with a new loan at a lower interest rate. A cash-out refinance allows you to use home equity to pay off high-interest credit card debt, reducing your overall payments and saving on interest.
You can lower interest rates, use one simple payment, gain better cash flow and improve your credit score.
You would risk upfront costs, a longer repayment period and reduced home equity.
- Before Refinancing: RM100,000 in credit card debt at 18% interest → Monthly 5% interest = RM1,500
- After Refinancing: RM100,000 refinanced into a home loan at 4.5% interest annually → Monthly interest = RM375
- Total Interest Savings: RM1,125 per month x 12 months x 10 years= RM 135,000
- Credit score – Higher scores improve approval chances and secure better rates.
- Debt Service Ratio (DSR) – A lower DSR increases eligibility.
- Loan-to-Value Ratio (LTV) – The amount of equity in your home affects loan approval.
- Stable income – Proof of regular salary or business income is required.
Yes, but approval depends on your financial profile. Bluebricks helps analyse rejections, fix credit issues, and resubmit applications for a better chance of approval.
- Processing fees: RM50-RM300
- Legal fees: 2%-3% of total loan amount
- Valuation fees: 2%-0.25% of property value
- Stamp duty: 0.5% of total loan amount
Total refinancing costs typically range from 3.75%-4%.
- 30–45 days – If financial records and credit score meet approval criteria.
- 45–90 days – If extra documentation or financial improvements are needed.
- 90+ days – If credit score adjustments or alternatives are required.
Yes, but if you don’t control spending, you may end up with both a refinanced mortgage and new credit card debt. Managing finances wisely is key.
We help secure lower rates and better terms:
- Loan rejection assistance – We identify issues and resubmit rejected applications.
- Expert refinancing solutions – We help secure lower interest rates and better loan terms.
- Personalised refinancing plans – Clients receive at least two tailored loan options.
- Fast and transparent process – No upfront fees and refinancing proposals within 3–5 days.
Learn more about our service fees here.
- Contact us for a free financial assessment.
- We review your financial profile and recommend the best refinancing options.
- We prepare and submit your loan application with the required documents.
- Once approved, we will guide you through the final refinancing process.
