In order to determine if you can consolidate debt into your mortgage, you start by determining how much available equity you have.In Canada, this is determined by taking 80% of your home’s value and subtracting any existing mortgage balance. 2014)When monthly bills get out of hand, debtors frequently look to debt consolidation.
*Disclaimer: Please note that the calculation results are estimates based on our most up-to-date information sourced from lenders’ publicly stated methodology and first-hand accounts. The results do not include special offers, such as cash back incentives, or any discharge, registration, reinvestment or transfer fees you may also incur.
For an exact penalty calculation, contact your lender directly.
That's particularly helpful if you can combine it with a lower interest rate as well. Basically, you borrow a single, lump sum of cash that's used to pay off all your other debts.
There may be other wrinkles involved - for example, some of your creditors may be willing to write off part of your debt in return for an immediate payoff - but the key thing is that you're simplifying your finances by exchanging many smaller debt obligations for a single bill to be paid every month.
Homeowners who are looking to consolidate their debts have the option of using their home equity to secure a loan or line of credit.