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Debt Consolidation Through Your Mortgage

Consolidate credit cards, car loans, and other high-interest debt into your low-rate mortgage. One monthly payment. Thousands in annual savings. We run the numbers before you decide — so you know exactly what you will save. Whether you refinance your first mortgage, use a second mortgage, or set up a HELOC, we compare every option and recommend the approach that saves you the most money while protecting your current mortgage rate and terms. Most clients save $500-$1,500 per month and see their credit score improve significantly within 6 months.

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Save Money

Stop Paying 20% Interest on Credit Cards

Canadians carry an average of $4,000+ in credit card debt at 20% interest. That's $800/year in interest on just the average balance. Consolidating into your mortgage at 5% drops that to $200. Multiply that across all your debts.

80%
Maximum LTV
50+
Lender Options
166+
Google Reviews
24hr
Pre-Approval Speed

Eliminate High-Interest Debt

Credit cards at 18-22%, car loans at 6-9%, personal lines of credit at 8-12%, and payday loans at even higher rates — consolidating everything into your mortgage at 4-6% saves thousands in interest every year. On $50,000 of credit card debt alone, the annual interest savings can exceed $7,500 by moving from 20% to 5%.

One Simple Payment

Replace multiple payments with varying due dates, minimum amounts, and interest rates with one clear, manageable monthly mortgage payment. Instead of juggling 5-10 different creditors each month, you make a single payment on a predictable schedule. This simplification alone reduces the risk of missed payments and the stress of managing multiple accounts.

Free Savings Analysis

Before you decide anything, we calculate your exact monthly savings, total interest reduction, and payoff timeline with a detailed before-and-after comparison. You will see the total cost of your current debts versus the consolidated mortgage, including any refinancing penalties and legal fees. There is no cost and no obligation for this analysis.

Improve Cash Flow

By reducing your total monthly debt payments, consolidation frees up significant cash for savings, investments, or daily expenses. Most clients see $500-$1,500 in monthly savings depending on the amount of high-interest debt being consolidated. This improved cash flow can be redirected toward building an emergency fund, contributing to your RRSP or TFSA, or simply reducing financial stress.

Credit Score Recovery

Paying off credit cards immediately improves your credit utilization ratio, which is one of the largest factors in your credit score. When your credit card balances drop from near-limit to zero, your score can improve by 50-100 points over 3-6 months. Over 6-12 months, your credit score typically recovers and often exceeds pre-consolidation levels, opening the door to better rates on future borrowing.

Multiple Consolidation Options

Refinance, second mortgage, or HELOC — we recommend the approach that minimizes costs and maximizes savings for your specific debt profile. A refinance works best for large amounts of debt with sufficient equity. A second mortgage avoids breaking your first mortgage if you have a great rate. A HELOC offers revolving access if you need ongoing flexibility. We compare all three scenarios side by side.

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Eligibility

Debt Consolidation Requirements

Qualifying for a debt consolidation mortgage depends on your home equity, credit profile, and income. Here is what lenders look for and how we help you access the savings you need, even in challenging situations.

Requirements

  • Minimum 20% equity in your home after the consolidation — the refinanced mortgage cannot exceed 80% of your home's current appraised value
  • Minimum credit score of 600 for A-lender refinancing, with B-lender options available for scores as low as 500 at slightly higher rates
  • Proof of stable income sufficient to service the new consolidated mortgage payment under the federal stress test
  • Total Debt Service (TDS) ratio must remain at or below 44% after all debts are consolidated into the new mortgage
  • Property appraisal confirming sufficient market value to support the refinanced mortgage amount
  • Full disclosure of all outstanding debts — credit cards, car loans, personal lines of credit, CRA arrears, and any other obligations
  • Clear title on the property with no outstanding liens or judgments beyond the debts being consolidated

How We Help

  • We provide a free, no-obligation savings analysis showing your exact monthly savings, total interest reduction, and break-even timeline
  • Our team compares refinance, second mortgage, and HELOC options side by side so you choose the approach that saves the most money
  • If your credit score is below 600, we connect you with B-lender programs that still offer substantial interest savings versus credit card rates
  • We manage the payoff of all your debts at closing — funds go directly to each creditor so your accounts are cleared immediately
  • For clients with insufficient equity for full consolidation, we prioritize the highest-interest debts first for maximum savings impact
  • We help you develop a post-consolidation plan to prevent re-accumulating high-interest debt and build long-term financial stability
  • If breaking your current mortgage involves a penalty, we factor that cost into the analysis to ensure the consolidation still makes financial sense
FAQ

Questions About Debt Consolidation

Everything you need to know about consolidating debt through your mortgage.

How It Works

Debt consolidation through your mortgage involves refinancing to access equity, then using those funds to pay off high-interest debts like credit cards (18-22%), car loans (6-9%), and personal lines of credit (8-12%). By rolling these into your mortgage (4-6%), you reduce your overall interest costs dramatically and simplify to one monthly payment. The process takes 15-30 days from application to funding, and we manage the payoff of each debt on your behalf at closing.
Savings depend on how much high-interest debt you carry. For example, $50,000 in credit card debt at 20% costs $10,000 per year in interest. The same $50,000 added to your mortgage at 5% costs $2,500 per year — saving you $7,500 annually. For a typical client with $40,000-$80,000 in combined high-interest debt, annual savings range from $5,000 to $15,000. We run a detailed comparison showing your exact savings before and after consolidation.

Credit & Equity

Consolidation typically improves your credit score significantly over time. Paying off credit cards reduces your utilization ratio — one of the most heavily weighted factors in Canadian credit scoring models. When your utilization drops from 80-90% to 0%, you can see a score improvement of 50-100 points within 3-6 months. Short-term, the refinance inquiry may dip your score by 5-10 points, but the long-term effect is overwhelmingly positive.
If your equity does not cover all your debts, we have several options. A partial consolidation lets you prioritize the highest-interest debts first for maximum savings. A second mortgage can access additional equity beyond the 80% LTV limit of a first mortgage refinance. B-lender refinancing may allow higher LTV ratios with slightly higher rates. We analyze your full situation and recommend the most cost-effective approach based on your equity, debt profile, and financial goals.
The right choice depends on your current mortgage rate and terms. If you have a low fixed rate with a large prepayment penalty remaining, a second mortgage lets you consolidate debt without breaking your first mortgage — preserving that favourable rate. If your mortgage is up for renewal or the penalty is small, a full refinance is usually more cost-effective because first mortgage rates are lower than second mortgage rates. We compare both options with exact numbers so you can make a confident decision.

After Consolidation

This is one of the most important questions to ask. After consolidation, we recommend cutting up or freezing your credit cards to avoid re-accumulating balances, setting up automatic savings contributions with the cash flow you have freed up, and creating a monthly budget that accounts for your new lower mortgage payment. Some clients choose to keep one credit card with a low limit for emergencies. The key is using the improved cash flow intentionally rather than letting lifestyle inflation fill the gap.
Yes. While A-lenders typically require a credit score of 600 or higher, B-lenders and private lenders can approve debt consolidation refinances for borrowers with scores as low as 500-550. The rates will be higher (typically 1-4% above A-lender rates), but the savings compared to credit card interest rates of 20%+ are still substantial. Many of our clients start with a B-lender consolidation, improve their credit over 1-2 years, and then refinance again into an A-lender mortgage at a better rate.

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