Debt Consolidation Mortgages Toronto

Consolidating debt is a process that involves taking out a new loan to pay off multiple, often high-interest debts. By consolidating multiple debts into one loan or mortgage, borrowers can streamline their finances into a single monthly payment. Better yet, they’re often able to negotiate favourable payment terms, including better interest rates, lowered monthly installments, or – in some cases – both.

There are several ways borrowers can consolidate their debts. Some people take out personal loans while others transfer balances to a new credit card with a higher limit. But one of the simplest and most effective strategies is a debt consolidation mortgage – when homeowners capitalize on the equity they’ve built in their homes to package their debts into a single monthly payment. More on that directly below…

Debt consolidation mortgages are a savvy financial tool that homeowners can use based on their home’s equity. It involves receiving a loan that can be used to pay off multiple high-interest debts, leaving borrowers with a single monthly payment and interest rate. The amount of the loan is then added to the total sum of the mortgage. A debt consolidation mortgage is the same solution as any other consolidation, but on a larger scale. Because mortgage loans can often be much larger than a personal loan, you can potentially consolidate ALL your debt into one loan instead of 2,3,4,or even 5 loans. It would be very unlikely to move a high interest car loan to a personal loan, but this is possible with a debt consolidation mortgage.

This may also be referred to as a mortgage refinance, which can either be borrowed from the current lender or a new institution. Debt consolidation mortgages may be used to help borrowers struggling to pay off their debts by streamlining their payments and negotiating favourable rates and conditions.

If you’ve accumulated multiple high-interest debts and are struggling to make all the monthly payments, it may be helpful to explore a solution like debt consolidation with your current mortgage.

The process starts off similar to applying for a standard mortgage. It requires filling out an application and presenting relevant identification, employment information, and tax documents before a mortgage broker can present your application to the right lenders.

1 or more lenders may approve your applicationand grant a new loan which you can use to pay off your current debts. The amount loaned will be added to your mortgage. When using a skilled mortgage broker like those at Stonefield Mortgage, you can rest easy knowing you have a winning negotiator in your corner; we’ll negotiate rate and payment terms with lenders to ensure you can meet your repayments on time.

Navigating any mortgage application process can be stressful – and it can be doubly stressful when navigating mortgage into debt consolidation solutions. That’s why many savvy homeowners turn to a licensed mortgage broker. We take the weight off your shoulders so that you can focus on your daily financial responsibilities.

Mortgage brokers are real estate experts with years of experience and unparalleled industry insight. They work with homeowners to understand their financial goals and determine the right mortgage solution for their families — whether they’re interested in debt consolidation, private mortgages in Toronto, or buying a home in the GTA.

Consolidating debt into a mortgage has helped many Canadians find their financial footing. With the help of a mortgage broker, debt consolidation loans offer several short and long-term benefits, including:

Reducing Monthly Debt Payments

Rather than struggling to balance multiple loan payments each month, consolidation into your mortgage allows you to utilize your home’s equity to your advantage. You’ll receive a loan to pay off your current balances. The loan amount is then added to your current mortgage, so you only need to focus on one payment and interest rate per month.

Lower Interest Rate

If you’re paying multiple creditors, especially if you have credit card debt, you’re likely paying a higher interest rate than where your mortgage falls. Using your home equity to consolidate your debt into your mortgage is a more effective and efficient way to streamline payments and take advantage of your lower interest rate.

Reduced Financial Stress

By eliminating several outgoing payments and concentrating on a single loan, you can release the financial burden of juggling payments off your shoulders and focus on rebuilding your finances.

There are few scenarios where a debt consolidation mortgage could be right for you.

• You are currently paying high interest debt and find yourself making just the minimum payments.
• You know that you want to streamline your loan payments, but you aren’t certain the best plan of attack.
• You are overwhelmed with your financial situation in general

Whether debt consolidation – in particular, using your mortgage for debt consolidation – is the right move shouldn’t be a solo conversation. It should be a dialogue with financial professionals.

At Stonefield Mortgage, we won’t sugarcoat or push anything. But we also won’t let a great opportunity pass your radar. We’ll talk frankly about whether a debt consolidation is right for you (no one-size-fits-all solutions here!) and then get to work crafting your bright new financial future.

Especially when dealing with multiple high-interest loans, you have a few ways to streamline your finances. Among the most popular solutions are debt consolidation mortgages and HELOCs.

As mentioned above, the former – debt consolidation through your mortgage – involves increasing the amount of your mortgage with either your current lender or a different financial institution. The goal of this loan is to pay off multiple debts in one fell swoop, leaving you with a single, easy-to-track payment and interest rate. The amount of loan received is then added onto your mortgage balance to be paid off each month.

A HELOC — home equity line of credit — is comparable to a mortgage in many ways. This type of loan is registered against your home and secured by equity, which is how your mortgage operates. What differentiates a HELOC from mortgage debt consolidation is that the line of credit allows you to withdraw funds as needed. HELOC loans afford borrowers the chance to make larger payments and pay off their outstanding balance faster — so long as early repayment penalties don’t apply. The catch with a HELOC is that it is usually at a higher rate than a fully closed mortgage.

If you still have questions about how these solutions differ, or you simply want a professional opinion on what’s right for you, drop us a line by clicking the “Book a Call” tab above.

When it comes to applying for a loan to deal with high-interest debts, the application process can feel overwhelming to take on alone. At Stonefield Mortgage, our trusted brokers are here to help.

We understand the stress that comes with managing your money. That’s why we’re committed to using our industry insight to your advantage by communicating with our network of top lenders and securing the best rates and terms for your debt consolidation mortgage.

Our objective is to provide our clients with flexible and cost-effective mortgage solutions. If you’re struggling to maintain multiple loan payments, we’ll work with credit unions, banks, trust companies, and private lenders to determine the best course of action.

Our experience and industry-leading software allow us to compile applications at a faster rate and analyze the options at your disposal — leading to lower mortgage rates, higher loan amounts, and a low-stress transaction overall.

At Stonefield Mortgage, we take your financial goals seriously, utilizing a matchless combo of experience, know-how and lender access.

For over 15 years, we’ve worked with homeowners across the Greater Toronto Area, connecting them with the top mortgage lenders and securing the right mortgage solutions for their lifestyle. We offer many trusted mortgage services, including debt consolidation, mortgage refinancing, self-employed mortgages and more.

We know first-hand the nuances involved in navigating the current real estate market. Our network and resources take the guesswork out of the process and help you feel confident in your decision to consolidate your debt into a mortgage or any other mortgage solution you seek out.

We offer free 15-minute consultations for new clients, where our seasoned brokers will help you explore our services and walk through the next step in the approval process.

Whether you’re looking for debt consolidation mortgage solutions, looking to purchase a home, or worried you won’t be able to secure a mortgage with bad credit, we’re committed to helping you meet your short and long-term financial goals.

The cost of working with a debt consolidation and mortgage broker may vary depending on the type of mortgage solution you require and your broker’s fees.

At Stonefield Mortgage, we believe in providing quality services at fair and competitive prices. We recommend taking advantage of our free consultation (see that “Book a Call” tab above), where we can discuss your mortgage needs and any fees that might be applicable to you.

Stonefield Mortgage proudly offers mortgage and debt consolidation solutions to homeowners in Toronto and across the GTA.

Our services are available in:

• Vaughan
• Mississauga
• Brampton
• Etobicoke
• Pickering
• Ajax
• Aurora Oakville
• Markham
• Richmond Hill
• Scarborough
• Newmarket
• Whitby
• Toronto

Get in touch with us today to set up a free 15-minute consultation.