Having many debts increases the risk of tainting your credit report. To speed up and simplify the repayment of your debts, a mortgage debt consolidation loan can be an interesting solution for you.
Debt consolidation loan means refinancing your current mortgage to include all your other high interest debt in order to make only one monthly payment - your mortgage payment. In addition, the prevailing interest rates for a mortgage are generally much lower than all other loans. It is therefore often a more than advantageous solution.
Today's Rates
Debt Consolidation Benefits
To find out if debt consolidation is an option for you, you should start by calculating the total amount you repay per month and assess your ability to pay the required loan for all your debts.
Say, for example, that your mortgage balance is $ 215,000 at an interest rate of 4.50% and you have about $ 20,000 in credit card debt from financial institutions at a rate of 18.5%. You also bought a car and have a car loan of $ 20,440 at a rate of 4.6%. Finaly, you have $ 5,000 in department store cards at a rate of 29%. As interest rates for a mortgage near 3.09%, everything seems to indicate that the mortgage debt consolidation loan would be a winning solution for you. Let's see everything in detail:
Current Situation
| DEBT | AMOUNT | INTEREST | PAYMENT |
| Prêt hypothécaire | $215 000 | 4.50 % | $1355.37 |
| Carte de crédit | $20 000 | 18.5 % | $600.00 |
| Prêt-auto | $20 440 | 4.6 % | $382.00 |
| Carte de magasins | $5 000 | 29% | $150.00 |
| TOTAL | $260 440 | $2487.37 |
After Consolidation
| DEBT | AMOUNT | INTEREST | PAYMENT |
| Prêt hypothécaire | $260 440 | 3.09 % | $1481.48 |
| MONTHLY SAVINGS: $1005.89 |
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