If you get a debt consolidation loan does it count against you when you apply for a mortgage later?

Question

This is a question re Canadian mortgages.

Answer 1

Well I am in the US but it does count against you here, it significantly lowers your credit score and shows on the report that it is being handled by a credit counseling agency. You'd think they'd be glad you are paying your debt instead of filing for bankruptcy, but it does count against you in a major way.

Answer 2

It should be the same as any other debt. If you have a record of paying off debts in the past, and are making your payments on time now, and have a good credit rating and enough income to cover the payment, you should be able to get your mortgage.

Answer 3

Any outstanding debt will factor into the approval process. Of course if it's current you'll be in much better shape than if it's delinquent.

A debt consolidation loan won't increase your total debt if you use it exclusively for the stated purpose so should have little impact on your creditworthiness.

Answer 4

Not as long as you were not in default of the loans being consolidated. In fact, it may help a bit in that your report will show the prior loans being paid off on schedule, and the single loan in good standing.

Answer 5

if someone wants to get out of debt today it is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is an online ebook :

you can read it for free at:

http://umgarticles.atspace.com/debt-consolidation.htm

Answer 6

Read my answer to the previous queston "Help buying a house".

You would be better off filing for bankruptcy!