A large amount of Canadians face high-interest debt every month. These high-interest credit cards, auto loans and personal lines of credit added up monthly can make it very difficult for some Canadians to get out of debt and meet their financial goals. By taking all of your debts and consolidating them into a secured loan backed by the equity of your property, you will get a much lower interest rate and only one reduced payment a month. This will allow you to save on interest charges and give you more cash flow at the end of the month.
Why Consolidate Your Debt?
LOWER YOUR MONTHLY PAYMENTS
Consolidating all your debts into your mortgage payments will lower your payments by extending your payment period.
LOWER YOUR INTEREST RATES
Mortgage interest rates are lower than credit cards and lines of credit due to the loan is backed by an asset.
IMPROVES YOUR CREDIT SCORE
By consolidating all your debt into one payment you will more than likely improve your credit score by removing a bunch of payment and it will make it easier for you since you will only need to pay one bill monthly. This will help you down the road when applying for other types of credit in the future.
By refinancing you can borrow additional money on your mortgage so you can consolidate (combine) your debts into one simple payment. That way you can easily budget with a structured payment plan. When refinancing you can take out up to 80% of your home value. If you are breaking your contract early you will have to pay a penalty. You will also need to get an appraisal done to find out what your home value is. Most times we can offset all of these costs into the refinance as long as you have built enough equity in your home.
Home Equity Lines Of Credit (HELOC)
A home equity line of credit also known as (HELOC) is a revolving line of credit that allows you to borrow the equity in your home at a much lower interest rate than a traditional line of credit. Home equity is the current market value of your home minus the remaining balance of your mortgage. Essentially, it's the amount of ownership of a property you have built up through both appreciations as well as reductions in the mortgage principle made through your mortgage payments. So, as you pay off your mortgage and build equity in your home, a HELOC gives you the ability to reborrow a portion of these funds. You can use HELOC funds at your discretion for renovations, debt consolidation, higher education or anything else you need. Just remember that the HELOC is secured by your home and cannot exceed 65% of your home's value.
If all else fails we can do a second mortgage. Second mortgages do have a higher interest rate but you can use up to 95% of your home value. These loans are usually for someone who is having a hard time qualifying with their existing lender. The interest rates are higher on seconds but are still usually lower than credit cards. We would evaluate your situation to see if you would save more by doing a second.
CHIP Reverse Mortgages
A reverse mortgage is a loan that is designed for homeowners 55 years of age and older, secured by the equity in the home, which is the difference between the value of your home and the unpaid balance of any current mortgage. It allows homeowners to obtain cash without having to sell their homes.
You can access up to 55% of the value of your home. You always maintain ownership of your home and never have to move or sell. You can receive your tax-free cash over time or in one lump sum.
Our mortgage services include: FIRST TIME HOME BUYERS | REFINANCE FOR DEBT CONSOLIDATION | SELF EMPLOYED MORTGAGES | BAD CREDIT MORTGAGES | MORTGAGE REFINANCE FOR HOME RENOVATIONS & INVESTMENTS | INVESTMENT PROPERTY MORTGAGE | COMMERCIAL MORTGAGES| VACATION &SECOND HOME MORTGAGES
Contact Dallas Martin, Best Mortgage Agent in London Ontario providing the best Mortgage Products for Refinances for Debt Consolidation across, St Thomas, Strathroy, Grand Bend, Kitchener, Woodstock, Guelph, Windsor, Sarnia, Hamilton and Toronto & Surrounding areas.