Maya replies: Debt consolidation is usually done when you already own a home and you can use some of the equity (the difference between the value of the house and the outstanding mortgage) to increase your mortgage and settle your other debts. If you are looking to apply for a home loan on a new property you will already have to be able to put down a deposit of at least 10%. This means that rather than consolidating your debt you would actually have to find additional money. Your affordability for the home loan will also be impacted if you have outstanding short-term debt. It may make more sense to speak to your bank about a single loan that you can use to settle your other short-term debt and then pay off that single loan, hopefully at a lower interest rate. Aim to settle that debt as quickly as possible. In doing so, you will be debt-free and will have proven to the bank that you can manage your finances. This would put you in a strong position for when you apply for your home loan.