Consolidate your
high interest debt
into a low interest rate mortgage

Lower your total debt payment and take back control of your finances

The Benefits of Debt Consolidation

Debt consolidation mortgage could help you take back control of your finances.

Many of us have various forms of debt, like credit cards, student loans, car loans and lines of credit… It can quickly become overwhelming with different due dates, minimum payments, and interest rates for each debt. Additionally, you may find that your debt is not decreasing despite consistently making payments. If you are looking to decrease your debt payment and regain control, consolidating your loans can be very helpful. A debt consolidation loan enables you to combine multiple debts into a single mortgage payment. Therefore, you will only be making one payment instead of several. Does this task seem easier than what you’re doing now?

Have Questions?

Get quick answers to your questions!

Understanding How Debt Consolidation Mortgages Work

Many homes have equity. The equity in a home is the difference between the value of the property and the amount that remains owing on the mortgage. As you progress in paying your mortgage, you will accumulate equity.

For instance, if your home is worth $500K and you owe $220K on the mortgage. You have an equity value of $280K. You may want to consider using the equity of $280K to pay off some of your high-interest balances by getting a low-rate mortgage refinancing and consolidating your debt.

The interest rates are lower for a HELOC or mortgage because your property secures them. This means you must have sufficient home equity to qualify.

Consolidating debt into a new mortgage involves terminating the current mortgage agreement and combining high-interest debts like credit cards, payday loans, and other non-mortgage balances into one loan with (ideally) a lower interest rate.

FAQ

What do I need to qualify for a debt consolidation mortgage?

Above all else, you must have enough equity in the property.

The lender requires at least 20% equity remaining in the property. Any equity beyond that, as determined by a real estate appraisal, may be withdrawn to help pay off debts with high-interest rates, such as credit card debt, unsecured personal debt, or CRA arrears.

To be eligible for this loan, you must have an income. Be sure to provide the same financial information as when you originally obtained your mortgage; this includes all income and liabilities

Is it a good idea to consolidate debt into a mortgage?

The decision depends on your individual circumstances. To begin, we suggest you communicate with expert mortgage professionals like ourselves. They will provide you with the solution to your debt consolidation needs, including the payment details for a mortgage. If the solution feels right to you, go ahead with the process.

What types of debt can you consolidate into your mortgage?

Many kinds of loans and forms of debt can be consolidated into your mortgage, including car loans, student loans, credit card debt, personal lines of credit, pay day loans, CRA arrears, or liens on the title.

What are the drawbacks of consolidation?

Fees – Setting up a mortgage may require some fees, such as the cost of terminating an existing mortgage according to its remaining term and any necessary legal fees.

Ask us if you are eligible for a better mortgage.

You can ask us any mortgage questions or discuss your possible mortgage solutions with us.
We would like to hear from you.

Consolidate your high interest debt into a low interest rate mortgage