Hi there I am on debt review and want to know how long does it take to buy property once you are done with your debt review as soon as you get the clearance certificate or do you have to wait for a certain time till you can apply for home loan?
Thank you for the question. A clearance certificate is issued when you have settled all your debt that was included in the debt review, or when you have brought up to date all the arrears on the accounts and are able to service your debt at the original contractual rate.
Once the clearance certificate is issued, Credit Bureaus have 5 working days in which they must expunge from their records any information pertaining to the fact that you were subject to a debt review.
In theory, you should be able to apply for credit again within a week of receiving your clearance certificate. In my experience though, the latter is not true. Credit Bureaus take longer than that to get your record cleared. I always suggest to wait at least 3 months before applying for new credit.
Pull your credit report about 1 month after you have been issued with the clearance certificate. check your credit score and payment history. If there are any discrepancies, take it up with the credit bureau. I would suggest that you make sure your credit profile and credit score is good before applying for new credit. Keep in mind that every time you apply for credit, and get declined, it affects your credit score negatively.
Be smart about applying for new credit and make sure that you are fully aware of how your credit rating works and how to apply for credit without doing damage to your credit profile.
Also keep in mind that even though your credit score might be good, credit providers might still have a flag indicating your history on their internal systems. They must also remove those records. It always remains the decision of the credit provider whether or not they want to extend credit to you. If they do decline your credit application, you have a right to know exactly why they declined it.
Please do not hesitate to ask if you need more information.