CW Chan asked 9 years ago
Hi,
I would like to ask be advise for my case. I have a few outstanding credit card balances and would like to consolidate all the card balances using my house loan refinance.
my total credit card debt is about RM70k across 4 cards.
My house loan balance is RM285k and the current value is RM500k.
The problem is when i apply for housing loan refinance, the bank said my monthly commitment is too high (include card debt payment and current house loan payment) so my refinance would not be approved. Anyway i can do to let the bank know the extra money cash out after refinance is to settle all my cards debt so that my monthly commitment is going to reduce?
KCLau Staff answered 9 years ago
Hi CW,
That’s a common problem. It is true that banks would not do that for you as far as I know. But there is one financial institution that provides mortgage and will help you on the debt consolidation. The company is AIA.
When you do application for mortgage refinancing with AIA, and inform your intention for settling the other debts, they will calculate your DSR as if you are settling those credit card debts. So eventually when you get the extra cash out, AIA won’t pay you first. Instead, they will issue payment directly to your creditors (the CC banks) to settle your debts for you.
After that portion is paid, only the remaining will be disbursed to you.
You can contact my friend from AIA – Daniel Kuan +6016-8885408 (say KCLau recommends his service).
Good luck!