Bankers and Lenders Don’t Want You to Get Over Your Head with Debt
When you apply for a home loan, one factor your lender will pay particular attention to is whether or not you can afford to repay the loan amount you are applying for. Not only will they look at your current amount of debt, but they will make sure your loan is not too much for you to handle. Banks and lenders don’t want you to get over your head with debt. If they approve you for a loan you cannot afford, they could face fines and repercussions from the government agencies that regulate them.
How Lenders Can Help You Manage Your Debt
Most lenders offer debt consolidation options allowing you to consolidate all your debts into your mortgage. Consolidating your debts allows you to make one repayment every month instead of multiple. In addition, you can also benefit from a lower interest rate on your mortgage than the interest rate on your credit cards or personal loans, which can help you reduce your debt faster.
As long as you meet the following criteria, your lender will work with you to find the right consolidation option for you:
- Six months of on-time home loan repayments
- Three months of on-time credit card and personal or car loan repayments
- Stable finances, including a steady income and employment
- Strong credit file and history
At Mortgage House, we want to help you manage your debt. We offer creative debt consolidation options as well as mortgage minimisation strategies to make sure you can afford all your loan repayments without putting you in a tough financial situation. Contact our brokers today to discuss which one of our loan offerings fits your current financial situation and your future plans.