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Ontario - License #11000073 · Nova Scotia - Licence #2023-3000786 · Mortgage Outlet Inc #12628
Debt consolidation through your mortgage in Ontario
Credit card interest at 20% or more will outrun almost any budget. If you have equity, moving that balance into your mortgage usually cuts the interest rate by three quarters and replaces four payments with one.
Who this is for
- Homeowners with at least 20% equity remaining after consolidation
- Carrying card, line-of-credit or vehicle balances
- Payments are manageable but nothing is going down
- Want one payment and a payoff date
What's included
Before-and-after math
Every balance, rate and payment listed today, next to the single consolidated payment, with total interest both ways.
Penalty check
If we have to break your current mortgage, we calculate the penalty first and only proceed if the savings clear it.
Payout handled at closing
Creditors are paid directly through your lawyer, so nothing depends on you moving money afterwards.
A plan so it does not repeat
Prepayment privileges used deliberately, so the consolidated debt is actually gone rather than re-amortised for 25 years.
How much can you borrow to consolidate?
Refinancing in Canada is capped at 80% of your home's appraised value. If your home appraises at $800,000 and your mortgage is $480,000, you have roughly $160,000 of accessible equity before costs — usually far more than the debt being consolidated.
Costs are an appraisal, legal fees and any prepayment penalty. We put those in the comparison rather than quoting a payment that ignores them.
The honest trade-off
Consolidation lowers your interest rate but stretches the debt over your amortisation, so a $40,000 card balance repaid over 25 years can cost more in total than paying it off in four years at a high rate. That is why we set a repayment target.
The usual approach: consolidate, keep the payment close to what you were paying before, and let the surplus go against principal. You get the cash-flow relief without the 25-year tail.
What it does to your credit
Paying revolving balances to zero typically improves your score within a couple of cycles because utilisation drops. The risk is running the cards back up. We are direct about this: we will suggest closing or reducing limits as part of the plan.
How the process works
- 1
Debt inventory
Every balance, rate and minimum payment listed on one page so the real cost is visible.
- 2
Equity and cost check
Available equity, refinance costs and any penalty, compared against what you save.
- 3
Approval
We submit the consolidation with payout instructions built into the lender's conditions.
- 4
Payouts on closing
Your lawyer pays the balances directly on closing, so accounts are cleared, not just promised.
Documents we'll ask for
- Statements for every debt being consolidated
- Current mortgage statement
- Property tax bill
- Income documents (pay stubs, T4s or T1s)
- Recent credit report, if you have one
Documents come in through secure upload — never plain email. Missing something? Send what you have and we'll tell you what still matters.
Run the numbers
Calculators for this file
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- Is consolidating debt into a mortgage a good idea?
- It usually is when your mortgage rate is a fraction of your card rate, you have the equity, and you commit to a repayment target instead of just enjoying the lower payment. We show total interest both ways so the decision is informed.
- Will I lose my low mortgage rate to consolidate?
- Not necessarily. Depending on your lender you may be able to add a second component or a home equity line without touching the first mortgage. If breaking is required, we compare the penalty against the savings before recommending anything.
- How much equity do I need?
- You must stay at or below 80% of appraised value after the consolidation. In practice that means roughly 20% equity remaining once the debts are paid out.
Find out what you actually qualify for
Send the basics and we'll come back with real lender options, or call and get an answer on the first conversation.