Browse Forums Home Finance Re: Consolidating debts into a Home Loan - Possible?? 4Aug 21, 2009 11:57 am mmmmm Might not be worth then. I don't want it to jeopardise the amount we have been approved for!! Thanks!! ~W~ Building our forever home - Lilium Estate Clyde - Land due May 2019 Built our first home - Pakenham - 2011 Re: Consolidating debts into a Home Loan - Possible?? 5Aug 21, 2009 12:02 pm *frosty* Howdy folks, The other option is the pay these off with our 5% deposit, and use the FHOG for the deposit. We've have nothing left from that after (planning to use it to cover stamp duty as well). Not sure how that would look to the banks though. Better? Worse? Who knows!! BTW - My parents are happy to go guarantor to reduce the LMI. Hopefully someone can answer one or two of my many questions!!! Thanks! Will Banks most likely don't accept the FOHG as your deposit, better check this Jack consolidating debts into a Home Loan 6Aug 21, 2009 1:27 pm kyton You will only be able to consolidate if you have equity in the property. If on the other hand you are borrowing close to 95% then the answer will more then likely be no. Mortgage Insurance companies do not like consolidating loans at the best of time - they can have fairly stringent rules imposed on them. Best to check with your lender - also in regards to whether your parents are able to go guarantor. Again some lending institutes are becoming stricter on guarantors due to the credit crunch. kyton you are correct. You will be unable to consolidate other (than a home loan) debt above 90% of the value of the security property. However if you are lucky to have a huge improvement in value after you buy your home, you may be able to refinance other debt into your home loan. Re: Consolidating debts into a Home Loan - Possible?? 8Aug 27, 2009 4:32 pm mickeytg, it would have been good to also note the valuation amount and original loan amount. Re: Consolidating debts into a Home Loan - Possible?? 9Sep 25, 2009 8:19 pm Hi everyone! I’ve been looking into doing the same thing, so tired of wasting money on rent I don’t want to wait until I pay off my scooter! Some things to think about from reading all your posts! Frosty, how is everything going? you should check out this website it helped me so much... www.mozo.com.au , might even be able to help you find a good rate so you don’t have to worry about the hikes coming up! Re: Consolidating debts into a Home Loan - Possible?? 10Oct 02, 2009 2:59 pm Hi guys. I've also tried to consolidate my personal loan into my home loan. As I'm building they say I can't do it until 6/12 months after it has been built. I thought it is kind of silly as my unsecured personal loan is with the same bank as the home loan, so why wouldn't they do this for me ? Should I ask again cheers DJ. Re: Consolidating debts into a Home Loan - Possible?? 11Oct 02, 2009 3:01 pm There may not be enough equity in the build at the moment. Possibly the lender is saying that within 12mths the value of the completed home may increase sufficiently for you to consolidate. Some things are worth waiting for. Re: Consolidating debts into a Home Loan - Possible?? 12Oct 08, 2009 12:58 pm Frosty, You might be able to do this, depending on your lender. The biggest thing in your post is that your parents are happy to go guarantor to get you out of LMI teritory. They do this by 'pledging' some or all of their equity to you to get your LVR below 80%. There are a couple of the majors and some credit unions that will lend 100% to 120% including debt consolidation using this equity. There are obviously other things you would have to consider to see if this is worthwhile, but yes it is possible. Re: Consolidating debts into a Home Loan - Possible?? 13Oct 08, 2009 10:01 pm Just be careful when consolidating loans. Sometimes it's false economy. If you consolidate the loans and continue to put the same amount you would be paying into the loan that's fine. Where people come unstuck is they just pay the normal interest which is usually calculated over 25 years. So instead of paying off the loans over, say, 5 years you are now paying them off more slowly. The extra interest over 25years adds up. It actually would cost you more in the long run but will help you out in the short term. On $10,000 with 18% interest over 5 years as opposed to 6% over 25 years it will cost an extra $4,000. That's if you pay the minimum amount. If you put the amount you are paying now into the home loan you save $2,000. Hope that's not confusing. Sorry I'm a number cruncher. Re: Consolidating debts into a Home Loan - Possible?? 14Oct 13, 2009 8:40 pm Hey Everyone, GlenGlen is correct. There are a few lenders that will do the Family Equity scenario and assist through using your parents property as a guarantee (provided they have the equity to assist). Another option that could be explored is using the First Home Owners Grant to pay out these personal debts. This will surely increase your borrowing capacity as you mentioned regarding the repayments on the personal loans compared to a home loan. This would use up $12,000.00 of the $14,000.00 first home owners grant you mentioned. Leaving you with $2,000.00. In a lot of circumstances for O/O purchases this may be enough to cover the costs/fees involved for the lending as well as you legals (but without consideration for the mortgage insurance). The 5% you have saved will need to remain as the lender will still need to use this to reduce the Loan to Value ratio to at least 95%. Depending on the lender you may get away with 95% plus Mortgage Insurance which will also free up some room for you. Your broker will be able to best calculate your total funds to complete. With the necessary Genuine savings built into your deposit. Hope this helps. Regards, Trent The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 18897 In Qld it is a requirement that a builder must have a cost breakdown, for building a home to the same specification, with the same inclusions and the same finish. So ask… 1 1765 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35192 |