A debt consolidation mortgage is a single mortgage that allows you to repay your debts to several or all of your creditors at once. In addition to streamlining your debts into a single payment, a debt consolidation mortgage may also offer you an interest rate that is lower than that charged by your creditors saving you money in interest charges. This option can be especially attractive if you have outstanding debts at a relatively high rate of interest (for example, those charged on some retail store cards or credit cards). We can arrange for a mortgage equal to the amount of your total outstanding debts that are currently due.
Eligible debts
This option may be suitable for debts such as those relating to credit cards, public utilities or other consumer loans.
Who qualifies?
In order to qualify for a consolidation mortgage, a consumer usually needs to have an acceptable credit rating and sufficient income to demonstrate that they will be able to manage the mortgage (that is to say, to demonstrate they will be able to make the monthly consolidation payment, in addition to paying for their regular monthly bills and expenses).
Here is an example:
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Before
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After Consolidation
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Mortgage
$240,000 @ 5.5% $1,464.94/mo
Credit Cards
$20,000 @ 18% $400.00/mo
Bank Loan
$15,000 @ 8% $469.15/mo
Car Loan
$30,000 @ 8% $606.42/mo
Line of Credit
$10,000 @ 4.5% $300.00/mo
TOTAL OLD PAYMENT $3,240.51/mo
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Pay Off All Debts
$315,000 + $10,000 Cash
New Mortgage of $325,000 @1.75%*
TOTAL NEW PAYMENT $1,337.33
YOU SAVE $1903.18/month
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* APR 1.75% based on varibale rate, 3 year term, 25 year amortization and will vary based on term/amortization/costs. O.A.C. conditions apply. Rate subject to change without notice.