Can I Get A Debt Consolidation Loan?

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moodyjack
Posts: 47
Joined: Wed Jun 17, 2009 4:36 pm

Can I Get A Debt Consolidation Loan?

Post by moodyjack »

Hello there,

I am looking to get a consolidation home loan. I currently have 3 credit cards and 1 personal loan that I want to incorporate into a mortgage.

I am looking at properties in the price range of 350k – 400k. My debts in total are roughly 35k. I have a deposit of 90k. Essentially I am looking to borrow a total of 260k – 340k. The properties I have been looking at are in the Melbourne city area.

My debts have come from being unable to work due to illness earlier this year. I am a solicitor making good money and I don’t currently own any other property.

Is this type of loan possible? Would I be looking at a higher interest rate or could I get a loan with a major bank?

Thanks

Jack.

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Can I Get A Debt Consolidation Loan?

Post by Otto Dargan »

Hi Jack

I can confirm you are able to consolidate your credit cards and personal loan into one mortgage. Providing a good explanation to the banks as to why you have a large amount of debt will help build your case to the banks. Being unable to work due to illness will be a good mitigating factor in loan applications for those who have large debt.

To help answer some of your queries this type of loan you may like to read over our debt consolidation loan page.

Providing you have no late payments on any of your credit cards or personal loan you may qualify for a loan with a major bank that offers a competitive interest rate.

Banks sometimes have a maximum debt consolidation ruling. For example they may only incorporate a maximum of up to three debts instead of unlimited. This will vary from bank to bank.

If you are unable to qualify for a debt consolidation loan with a major bank, there are non bank/non conforming lenders that may accept your application. These non conforming loans do usually come at a higher interest rate than the standard bank interest rates.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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