Debt Consolidation Mortgage in Pump Hill, Calgary, AB:

What is debt consolidation mortgage?

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Also referred to cash-out refinancing, increasing your mortgage is a way of turning the equity in your home into cash. The high-interest debts can then be paid from the funds.

Debt consolidation is combining 2 or more debts into one. This means instead of having multiple debts with varying interest rates, the loans can be rolled into the mortgage. 

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How much equity can be used?

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Home equity is the value of your home minus the mortgage amount owing.
Lenders will generally lend up to 80% of the property value. This may vary depending on property value, property location, etc.

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Types of loans that can be consolidated

• credit cards

• line of credits

• auto loans

• second, third mortgages and home equity line of credits (HELOC)

• payday loans

• personal loans

• and more~

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Pros and Cons of Debt Consolidation Mortgage

Consolidating debt can help lower loan payments. Loans and credit cards may have higher interest rates compared to mortgage rates. The downside is that the mortgage owing will increase. However, it may be a good option to help reset your budgeting and debt management. If credit score was affected due to high balances, by clearing out the debts will help credit recover.​ ​