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

Debt consolidation loan
homer_a_d asked:


This is a question re Canadian mortgages.

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

  1. curiositycat Says:

    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. MLaw Says:

    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. Diane D Says:

    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. bostonianinmo Says:

    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. Realty Shark Says:

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

    You would be better off filing for bankruptcy!

  6. dreamscorporation Says:

    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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