Consolidating Debt Tips

Can You Consolidate Debt Into Your Mortgage in Ontario?

Yes, if you qualify and have enough available home equity. A debt consolidation mortgage may let you refinance to pay off credit cards, personal loans or lines of credit, replacing several payments with a mortgage payment. For many standard refinances, the total mortgage borrowing limit is generally up to 80% of the property’s appraised value, subject to income, credit and lender requirements. For example, an $800,000 home with a $400,000 existing mortgage could have up to $240,000 of theoretical borrowing room before refinancing costs and qualification are considered. The Financial Consumer Agency of Canada explains how borrowing against home equity works.

Will debt consolidation actually save money? It may reduce the interest rate and monthly payments, but extending repayment over many years can increase total interest. Mortgage-break penalties, legal and appraisal costs also matter. Converting credit-card debt into a mortgage means your home secures that debt, so missed payments carry more serious consequences. Compare total borrowing costs, not only the new monthly payment. For a more detailed explanation, see my Ontario mortgage refinancing and debt consolidation guide.

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  • Working with a mortgage agent is important if you want to fix your financial situation. Of course everything starts with how you change your spending habits.
  • Make a budget and see how much each small purchase adds up.
  • Cut up your credit cards. Research has shown that having easy access to tools that enable us to spend money prevents us from fixing the problem.
  • Contact JWMortgages if you want to discuss how to change your situation.
  • If you have multiple loans, credit cards and lines of credit, you are paying many different interest rates – its extremely difficult to figure out what your actual cost of debt is with this type of chaos
  • Consolidate your different debt into one line of borrowing. This will give you a harmonized interest rate that translates into one consistent payment each month. No surprises. No guessing.
  • Check out our payment calculators.
  • JWMortgages will guide you along every step of the way as we present your case to the lenders and negotiate the best rate given your financial situation
  • Contact us today for a free consultation
  • Bringing one amount to one lender gives you influence in the negotiation with the lender
  • JWMortgages will guide you along every step of the negotiation process
  • Check out our latest rates.
  • First you need to understand what your credit score is.
  • Next you need to understand how lenders view your score and how that affects your loan qualification.
  • Now you need to understaned how to fix your credit score. Book a meeting with JWMortgages to find out how we can help.
  • The amount of loan for which one can qualify depends on many factors: income, credit score, other debt – these are are some of the most influential criteria for loan approval.
  • JWMortgages can give you an estimate for a loan amount based on a quick 15 minute phone call.
  • For an approximate estimate check out our calculator
  • One’s mortgage payments depends on many factors: loan value, amortization, interest rates – these are all critical elements
  • JWMortgages can give you an estimate for a loan payments based on a quick 15 minute phone call
  • For an estimate check out our payment calculator