Debt Consolidation Mortgage — Ontario
If you're paying a mortgage plus credit cards, a car loan, and a line of credit, you're paying multiple interest rates when you could be paying one. Ontario homeowners with built-up equity can roll high-interest debt into their mortgage and save hundreds every month.
The Cost of Carrying Multiple Debts
Credit cards charge 19–29% interest. Car loans run 7–9%. Lines of credit sit around 10–12%. Your mortgage rate is a fraction of all of those. Consolidating means replacing expensive payments with one lower one.
Credit Card Debt
A $15,000 balance at 22% costs roughly $275/month in minimum payments — and most of that is interest. At that rate, it takes decades to pay off if you only make minimums.
Car Loans
A $25,000 car loan at 8% runs about $456/month. That's a fixed obligation eating into your cash flow every month for the next five years.
Lines of Credit
A $10,000 balance on a personal line of credit at 12% costs around $150/month. Manageable alone, but stacked on top of everything else it adds up fast.
Two Ways to Consolidate
Depending on your current mortgage, equity position, and goals, one of these paths will make more sense for your situation.
Mortgage Refinance
Replace your existing mortgage with a new, larger one that covers your current balance plus all outstanding debts. You get one payment at your mortgage rate. Requires at least 20% equity in your home.
Best when: You want a fixed rate on the entire amount, or your current mortgage rate isn't worth keeping.
Home Equity Line of Credit (HELOC)
Keep your existing mortgage and add a revolving credit line secured against your equity, up to 65% of your home's value. Pay off your debts with the HELOC and enjoy a rate well below credit cards.
Best when: You have a great rate on your current mortgage that you don't want to break, or you want flexibility to draw and repay as needed.
Is Debt Consolidation Right for You?
Consolidation works well in certain situations. Here's what makes a strong candidate.
You Have Equity
At least 20% equity for a refinance, or enough to support both your mortgage and a HELOC. If your home has appreciated since you bought it, you likely have more equity than you think.
High-Interest Debt Over $15,000
The savings need to justify the costs of refinancing (penalties, legal fees, appraisal). For debt under $15,000, a HELOC may be the better route since costs are lower.
Stable Income
Lenders need to see that you can handle the consolidated payment. Steady employment and a manageable debt-to-income ratio are key to approval.
A Plan Going Forward
Consolidation only works if you address the spending patterns that created the debt. We'll help you build a strategy that prevents the cycle from repeating.
Costs to Factor In
We believe in full transparency. Debt consolidation saves most people money, but there are upfront costs you should understand before deciding.
Mortgage Penalty
If you refinance before your term ends, you'll pay either three months' interest or the Interest Rate Differential (IRD), whichever is higher. We calculate this for you upfront so there are no surprises.
Legal & Appraisal Fees
Refinancing requires a new legal process and property appraisal, typically costing $1,500 to $2,500 total. Some lenders offer cash-back to offset these costs.
Extended Amortization
Rolling a 5-year car loan into a 25-year mortgage means paying interest longer — even at a lower rate. We run the full numbers so you can see the true long-term cost versus the monthly savings.
How the Process Works
From first conversation to debt-free simplicity — here's what to expect.
We Run the Numbers
Send us your current debt balances, interest rates, and monthly payments. Use our mortgage calculator to get an initial estimate, then we calculate exactly how much you'd save — including all costs — so you can make an informed decision.
Choose Your Path
Based on your equity, current mortgage rate, and goals, we recommend whether a refinance or HELOC makes more sense. We show you both options side by side.
We Shop Lenders
We submit your file to multiple lenders across our panel — banks, credit unions, monolines, and alternative lenders — to find the best rate and terms for your consolidation.
Close & Simplify
Once approved, the new mortgage or HELOC pays off your existing debts directly. You're left with one payment, one rate, and more money in your pocket every month.
See How Much You Could Save
Send us your debt balances and we'll show you the exact monthly savings and total interest reduction. No obligation, no cost for the analysis.