Debt Consolidation and your mortgage
Debt consolidation is the process of paying off debts by putting them into one loan payment. The new loan is more manageable and often at lower rate of borrowing. One may merge all types of debt. including mortgages, consumer debt, tax arrears, bad debt and collections.
Consolidation allows the borrower to ” clean up” their current credit. It provides with a fresh start, and lowering they monthly payment. Consolidation is a good way to to regain control and help to improve credit.
Are you looking to consolidate your debts?
What does a debt consolidation mortgage look like?
Below are examples of debts to merge:
- Credit cards, loans and interest only line of credits
- 1st ,2nd and more mortgages or liens registered against your property
- CRA ( Revenue Canada Tax Liens) or wage garnishments
- Unpaid property tax
- Personal debts not reported on credit bureau
- Collections and written off debts
What type of mortgages qualify for debt Consolidation?
We can set up a new 1st mortgage or 2nd to merge all your debts .
- Equity Second Mortgage
An equity 2nd mortgage makes sense when there may be no benefit to pay off our current 1st mortgage. In this case a 2nd mortgage is ideal. It is quick and funds accessed with ease regardless of income or credit.
- Equity Line of credit
This is a good alternative to a 2nd mortgage because you can access funds over again as you pay down you line of credit. Once set up it will serve the homeowner for many years.
Mortgage rates depend on one’s credit. They are similar if you are buying, refinancing, or consolidating.
For borrowers with good credit, they will enjoy our best bank rates, just as if you were purchasing.
2nd mortgage rates and pricing differ from 1st mortgage. 2nd mortgages carry a higher rate because of they pose a higher risk to investors.
We would be happy to discuss your consolidation needs.
Please email or contact us at 1-877-237-2601