Mortgage Blog

How to Consolidate Debt With Your Mortgage

Are you in an immense amount of credit card, automobile, student loan, or mortgage debt? Well, do not worry because Sean Stewart has a solution for you. Debt is very common amongst Canadians, and the best way to consolidate your debt is through refinancing your Ajax mortgage.

What is Debt Consolidation
Debt consolidation is when you take out a mortgage or refinance your existing loan to pay off all your debt. This is so you only have to worry about making one payment monthly, instead of multiple different payments to different companies. This makes it easier to manage so you do not have to worry about different due dates for different businesses.

Benefits of Debt Consolidation
One benefit has already been mentioned, and that is just having to worry about one payment per month, instead of multiple payments. Another benefit is that you can be offered a lower interest rate than the one you are currently paying. Refinancing your mortgage with a lower rate can save you hundreds of dollars every month.

In addition, by paying off all your credit card debt through your mortgage, you can raise your credit score. Making one payment every month can help alleviate stress and increase your credit score if you stay on top with the payments.

How To Consolidate Debt With Your Mortgage
So how exactly does this work? You can consolidate your debt by accessing the equity in your home through cash-out refinancing. This gives you direct cash that can be spent any way you would like. With cash-out refinancing, you are replacing your existing mortgage with a new mortgage so you only have to worry about one payment.

You can also consolidate your debt by obtaining a second Ajax mortgage, or a home equity line of credit. Obtaining a second mortgage does not get rid of your first mortgage, so you will have two payments to be in charge of.

Contact Us
For more details on how to consolidate your debt with your mortgage, please contact your local Ajax mortgage broker. Sean Stewart would love to work with you and help you achieve your financial goals. So don’t wait, call our office today at 905-427-9596 to get started.

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