Hi

I am new here but been reading for a long time. I would like to ask you kind people a question to help my husband and i decide which is the best route to take.

We have been renting in Australia for a few months. We do not have a lot of money in the bank due to my husbands messy divorce which cost us heaps. This has left us with a modest amount of money to put a deposit on a house. I am told that banks will lend up to 95%, which i think we will have to go for. My husband has a very good job earning plenty of money to service a large mortgage and we have no children.
Our dilemma stems from our existing credit card, and car loan. Ideally we would like to pay this off before getting a mortgage, but if we do, it will leave us with very little deposit for a house at all.
If we keep the debts and just carry on paying them off, it will drastically reduce the amount we can borrow to buy a house and i am not sure we would find anything half decent in our price range.

I am feeling very flustered and not sure what is the best thing to do. Any help grafeully appreciated.

If possible ask the bank if you can consolidate the loans and CC debts into the mortgage. You'll probably be paying lots in interest on your current debts and paying them off first should be your first priority.

If you cannot find anything half decent for the price you want work on paying off the debts. Having savings and cc debts here is daft because as you point out they CC debt reduces your borrowing potential.

Anyhow rates are on the up so overextending yourself could be suicidal.

I am also priced out of the market but I am not going to overextend myself like many a fool has done.

hi hayley cant help you im afraid as im still in england but just wanted to welcome you to the site im sure you ll get lots of help,what part of oz are you living.

tracey.