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High-interest debt from credit cards or loans makes it hard to manage your finances. But if you're a homeowner, you can take advantage of your home's equity. Combine the money you owe into a debt consolidation mortgage (also known as a conventional mortgage ), home equity loan or line of credit.
If your mortgage application is accepted with unfavourable credit card debt circumstances, you risk being subject to high mortgage interest rates, which can pull you further into debt if you’re not careful.
Apr 10, 2024 · This financial strategy combines your high-interest debts into a single, lower-interest mortgage loan, using your home equity as leverage. Whether you’re struggling with credit card debt, personal loans, or medical bills, consolidating them under one roof can simplify your financial life.
Merge all your payments into one monthly payment and keep your credit score intact with a debt consolidation. Contact our financial advisors in Québec.
Mar 25, 2022 · If you have a relatively small credit card balance and diligently make your minimum payments on time, that debt is unlikely to have any effect at all on your mortgage application.
Sep 6, 2023 · Consolidating your debt involves using the equity in your home to secure a loan, usually by refinancing your mortgage or with a line of credit to pay off other high-interest debts. These debts can include credit cards, auto loans, personal lines of credit, student loans and even payday loans.
In most cases, you will find that making extra payments on your credit card debt is better than making extra payments on your mortgage. This is because credit cards have a higher interest rate and carrying a high balance has a more significant negative impact on your credit score.
