Consolidating debt after refinancing

Discussion in 'Loans & Mortgage Brokers' started by benzAdiazepine, 1st Jun, 2018.

Join Australia's most dynamic and respected property investment community
  1. benzAdiazepine

    benzAdiazepine New Member

    Joined:
    19th Mar, 2018
    Posts:
    4
    Location:
    Clyde, Vic
    we recently refinanced our mortgage to BAnk of Melbourne last february 2018 (after about 2.5 yrs in westpac) with basic package to pay it off sooner and decrease our repayment and wasnt keen at that time to consolidate the rest of our debts. Our mortgage was $311k from westpac and our house was valued at 450k by BOM (wasnt physically inspected, no one came to see the house). We included my CC to the mortgage which we are back to 320k mortgage now in BOM but still at less than what we were paying in westpac. We are paying extra now fortnightly (mortgage currently 316k). we are still able to pay on time with little extra for us but sometimes can be tight on budget as well. Now, we are thinking of consolidating the rest of our debts as split account under home loan as we want to decrease our debt and hopefully pay off faster so we can buy our IP soonest. (Split loan) It wasnt discussed during our application as i didnt know it until recently. Would it affect my credit history if I apply for split loan too soon the same bank? Im open to opinions and suggestions. Thanks in advance!
    Other info: combined income before tax 140k, 2kids, 2 cars on loan 8k (1more yr to finish) &10k(2more yrs to finish), personal loan 16k, 2 CC 8k&2k(my fault im back to 8k again w/ same CC consolidated ), 1 Cc interest free 3.5k.
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    5,438
    Location:
    Perth WA
    It will affect your credit history as it'll be another loan application. It's not too soon to apply for a new split, you can do it the next day if you want too.

    It might be worth actually closing your CC cards to stop you redrawing on them, and consolidating the lot into a short term loan - no more than 2-5 years, depending on your cash flow - and knocking the whole lot on the head so you can start getting in front.
     
  3. Colin Rice

    Colin Rice Well-Known Member

    Joined:
    9th Jul, 2015
    Posts:
    2,045
    Location:
    Perth
    If you are planning on purchasing an IP in the near future then access the max equity that the bank policy allows as changes are afoot that may roadblock you down the track.
     
  4. benzAdiazepine

    benzAdiazepine New Member

    Joined:
    19th Mar, 2018
    Posts:
    4
    Location:
    Clyde, Vic
    That is the plan - to close off my CC’s after reconsolidation and finish them off in less than 5yrs . Im just afraid I might get rejected as i have transferred my energy&gas (alinta which i heard does a ?hard inquiry) and another credit inquiry(not sure) for saladmaster. I really need to practice saying no. thank you so much for the reply!
     
    Jess Peletier likes this.
  5. benzAdiazepine

    benzAdiazepine New Member

    Joined:
    19th Mar, 2018
    Posts:
    4
    Location:
    Clyde, Vic
    We will try to do that and inquire when we do the debt consolidation as we dont have much savings as of now. do all banks do valuation everytime we borrow against our home loan? I dont want to repaint in the very near future in case they need to come in and check our property. Not that it’s desperately needing repaint, just few nicks here and there (plus young kids) but we want to maximize the best value in case... Thanks a lot!
     
    Colin Rice likes this.
  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    5,438
    Location:
    Perth WA
    Maybe chat to a broker about looking at a lender who won't credit score, if you think there may be concerns about getting knocked back.
     
    benzAdiazepine likes this.