Sometimes people come to us with a lot of consumer debt which can be a real problem if you’ve got less than 20% deposit for a home loan.

If you’re a borrower with a small deposit (most first home buyers!), then basically you need to be squeaky clean = no (or bugger all) consumer debt.

Consumer debt is personal loans, HP and credit cards. Having some is ok but if it’s up around $20,000+ then it might kill your home loan application.

As mortgage brokers, our service isn’t geared to helping you pay those debts off, but we do work with a couple of companies who have made a business out of helping people consolidate and get rid of their debt.

These companies are not budget advisers. They won’t tell you to stop buying so much fishing gear or make you feel bad for buying the latest handbag. They can do spreadsheets up the waazoo and put you on a money diet if you want, but their main emphasis is on your relationship with money and how you interact with it. They are about helping you understand why you spend or save in a certain way. The idea is that when you understand that stuff, you’ll end up in a better place. And sometimes that better place is less personal debt or whatever is preventing you from getting a mortgage to buy a house.

Money Mentalist and debt free me have slightly different styles and that’s simply a function of the people behind them. I say talk to them both and go with the one you feel more connected to.



When you’re ready for a chat, come back to us and we can help into home ownership.

About Campbell Hastie

Cam is one half of Auckland based mortgage brokers, The Go 2 Guys.

He makes a living by sharing what he knows about mortgages with people, arranging mortgages for people and then insuring people.

He doesn't claim to know everything about mortgages himself which is why he teamed up with David Mercer — hence the ‘2’ in Go 2 Guys.

He writes posts regularly on his blog and has been told he has an ability to share his knowledge in a simple and sometimes memorable way.

Feel free to comment and ask any questions. Contact Campbell Hastie m: 027 697 7789.

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