Finimpact

Frequently Asked Questions(FAQ)

How do you buy a house when you’re in debt?

While you can carry a certain amount of debt, buying a house when you are heavily in debt can be challenging. In this situation, the first step to buying a house would be to lower your debt-to-income ratio to 43% or less.

Can medical debt affect your ability to buy a house?

Just like any other type of debt, medical debt can negatively affect your ability to buy a house. If you have multiple outstanding medical bills, medical debt consolidation may be a good idea.

How long after debt consolidation can I buy a house?

Before buying a house, you should wait at least a few months after debt consolidation to allow your credit score to recover and the amount of debt to go down. In some situations, waiting for two years or longer is advisable.

Is it a good idea to consolidate debt into a mortgage?

Taking out a mortgage consolidation loan to combine high-interest debt into a mortgage is often a good idea, as it can potentially save you thousands of dollars in interest payments.

About the Authors

Tetiana Sitiugina-Babiuk

Written by: Tetiana Sitiugina-Babiuk

Financial Sector Specialist and Content Strategist

Independent writer, content strategist, and financial sector specialist. Tatiana has an extensive experience in working with financial institutions such as Bank of Canada and Risk Management unit at FinDev Canada. She holds an MA in Financial Risk Management from the University of Toronto.

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