Feel bogged down and overwhelmed by debt? You’re not alone, but fortunately there is a potential solution out there that could bring you some relief. If you have an existing mortgage on your home, then it opens up the opportunity to consolidate all of your debts into one single monthly payment – thanks to home equity. Sounds like something worth exploring further? Keep reading for more information!
- Refinancing your debt into a mortgage is an effective way to reduce and manage all of your payments into one single, more manageable monthly payment.
- Debt consolidation can prove to be hugely beneficial for you in the long run; allowing you to manage your debt with one single, low-interest rate that could ultimately save thousands of dollars.
- Refinancing your mortgage to consolidate debt could be the key to improving both your credit score and financial future – giving you a clean slate going forward.
Are you struggling to juggle multiple payments and need a way out of debt? Debt consolidation could provide the solution
Do you have multiple debts that seem unmanageable? Debt consolidation could be the answer. By bringing all of your various unpaid debts together into one single, larger debt, you can create a payment plan with more manageable monthly installments. This method will make it easier to keep track of payments and remain on top of finances each month.
Why move your debt to a mortgage?
Homeowners in Canada have several compelling reasons to consider the option of consolidating debt into a mortgage.
By consolidating your debt into a mortgage, you can benefit from significantly lower interest rates and save thousands in interest payments
Consolidating your high-interest debt into a mortgage with reduced interest rate can be an effective way to save money on monthly payments. As such, you will not only reduce the amount of interest paid but also pay off your debts in a much shorter time frame.
Lower your debt burden and improve your credit score by consolidating all of your debts into one single, manageable payment.
Moreover, consolidating debt can be a great way to improve your credit score. When you have various debts, each of these accounts are typically shown separately on your credit report. This gives off the impression that you owe more than what’s truly owed. By uniting all of those obligations into one account, it will increase the rating associated with your credit score in no time!
Refinancing your debts is a simpler way to manage and organize your finances, providing you with more financial security in the long run.
By consolidating your debt into one simple payment, it is much easier to keep track of where your money goes and guarantee that all payments are made on time. What’s more, you can save financially in the process! Consolidation loans offer a unique opportunity for Canadian citizens to save significantly while optimizing their financial portfolio – making this option an intelligent choice for anyone looking to streamline their finances.
Is it the right move to consolidate debt into a mortgage?
Mortgages are one of the few financing products with a set low interest rate, making it advantageous to restructure your debts in this way. In contrast, many other types of debt such as credit cards come with exorbitant rates that can cause you to sink further into debt as time passes and more interest accumulates.
After you consolidate your debts by refinancing with a mortgage, not only will you benefit from one low interest rate, but also reduced monthly payments and a manageable repayment term. Pretty great, doesn’t it? Let me give you an example to further demonstrate the advantages of debt consolidation through refinance:
Say that there is $10,000 in credit card debt along with 30% set as its interest rate; this adds up to around $3,000 for total interests. Now if we take that same amount ($10K) and apply 4.54% (lowest available mortgage rates), then what comes out are just about $450 worth of interests – which means savings of more than $2500 should be expected when consolidating existing debts into conventional mortgages via refinance!
Are you considering consolidating your debts by refinancing your mortgage? Here are the steps to know before taking that plunge:
The initial move towards consolidating your debt? Reach out to a mortgage broker – they can evaluate your financial profile and ascertain if you are eligible for refinancing.
If you reach out for help, our team will help you to find the best lender who can offer competitive terms and rates. Once that’s established, it’ll be time to put in your loan application— but first make sure all of your financials are up-to-date! Doing this will ensure a smooth process from start to finish.
After you’ve been approved for your loan, the next logical step is to utilize that fund and pay off all of your outstanding debts – credit cards, lines of credit, or any other loans. This will help reduce stress from hefty interest payments.
By paying off your debts, you can significantly reduce the amount of money spent on interest and leave yourself with just a single monthly mortgage payment. This long-term financial gain is invaluable, allowing you to save more for retirement or other future investments.
Ready to take charge of your debt and finances? Reach out to a IMI Financial Group mortgage expert today for information about refinancing eligibility. Our experts are here to assist you in finding the best option tailored specifically for your needs.