At the moment we have around 36k of debt for car (20k) personal loan (10k) and credit cards(6k) These will be paid off within two years.
I just wanted to hear from others who successfully got a mortgage with current debts. We don't have any savings at the moment due to past problems but will be working hard to build some up by the end of the year. My husband also has a debt 9 agreement currently in place but if that affects our chances will be looking at a loan in my name only as I do earn the most.
We're hoping to atleast being able to look to buy a house in 2 years as our youngest will start school then and would like to be finally settled in our own place. Both me and husband work with an average 120k combined income
Can you get a mortgage with debt?
Can you get a mortgage with debt?
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Money
6 Replies
Personally I would try my hardest to clear at least half of your debt before attempting to get a home loan. You don't want to bite off more than you can chew and find yourself not being able to make the repayments. I've had a lot of debt myself over the years and got it down to a smaller amount before getting a home loan. Best of luck!!
They made my sister clear her credit card debt and close the credit card account, she only had a few $100 in debt.
Your first mortgage they are much much stricter on than subsequent home loans.
Credit Card debt is the thing that you would want to get rid of first, this is because it varies. You can have a balance of 0 and the next day you could have a debt of thousands. All other fixed loans and such have a balance that is constantly decreasing. I would suggest get the credit cards down and then cancel all except one and have a small available credit only for emergencies. Good luck.
Definitely not with that much credit card debt. Clear the personal loan and credit cards (credit cards first)
Thing is you will SAVE MORE paying off your credit cards and loans faster than you will earn on interest saving your money.
Pay your debts first then save.
l had to pay out my partners credit card debt and cancel my Myer card that had no balance on it (plus neither of us had a car debt) before any bank would look at us.
Clear the credit card debt and the personal loan if you can first. You will still be able to borrow but how much depends on the debt you currently have as well as your income.
My Hubby has a $50K car loan, he gets a car allowance on top of his wage from work which covers the loan but it still went against us when we went for our build loan and we have a lot of equity in the land we own. Try to clear as much as you can