Debt consolidation
Lower payments, with eyes open.
Moving credit card and loan balances into your mortgage can cut your monthly payments sharply. It also turns unsecured debt into debt secured by your home. Here is how to decide if it is right for you.
01
Lower monthly cost
Mortgage rates are far below typical credit card rates of around 20%.
02
Longer repayment
Spread over 25 years, small debts can cost more in total interest.
03
Your home is security
Unsecured debt becomes secured by your property.
How it works
You refinance your mortgage for a higher amount, up to 80% of your home's value, and the extra funds pay off your other debts directly at the notary. You are left with one payment at a mortgage rate.
Example: $40,000 of credit cards at 20% costs about $1,200 a month in minimum payments. Added to a mortgage at around 4.5% over 25 years, the same $40,000 costs roughly $220 a month. The saving is real, but only if the cards stay paid off.
When it makes sense, and when it does not
- It helps when high-interest balances are blocking your savings or your credit score
- It works best with a plan: pay more than the minimum and keep cards at zero
- It may not make sense if the penalty to break your mortgage is larger than the interest saved
- It is risky if spending habits do not change, because debt can return on top of a bigger mortgage
Alternatives we compare
Sometimes a home equity line of credit, a second mortgage, waiting for your renewal date, or a consolidation loan from your bank is the better choice. We compare total interest, fees and flexibility before recommending a path.
How it works
From first call to the notary, without surprises.
01
Discovery call
Your goal, timeline, income type and down payment. 15 to 20 minutes, no commitment.
02
Your checklist
A personal document list for your situation, shared through a secure channel.
03
Options compared
Rate, term, prepayment rights and penalties side by side, so you choose with the full picture.
04
Approval to keys
Lender conditions handled and your realtor and notary coordinated until funding.
Will consolidating hurt my credit score?
Can I consolidate if my credit is damaged?
Is consolidation always cheaper?
Related services
Refinance
Use home equity for renovations, investments or a better structure, with the full cost laid out first.
Learn morePrivate & alternative lending
Short-term options when a bank says no, always with a clear cost and a plan to move back to a regular lender.
Learn moreRenewal & switch
Compare your lender's renewal offer with the market before you sign, and switch if the numbers make sense.
Learn more
Your next step