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

debt converging loan



This is the subject re Canadian mortgages.

This entry was posted on Saturday, November 28th, 2009 at 12:59 pm and is filed under Renting & Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

6 Responses to “If you get a debt consolidation loan does it count against you when you apply for a mortgage later?”

  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.

  2. 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.

  3. 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.

  4. 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.

  5. Read my answer to the previous queston “Help buying a house”.

    You would be better off filing for bankruptcy!

  6. dreamscorporation on December 9th, 2009 at 10:44 pm

    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:

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