Home Equity To Consolidate Bills & Debts

Mortgage Refinance To Fix Poor Credit

Use your home equity to consolidate high-interest bills, debt, and more to have one monthly payment that can improve your financial health. By using your home equity to consolidate debt you can save on interest.

If you often carry large balances on multiple credit cards or loans, you could save on interest by switching those balances to a mortgage or home equity line of credit. See much like many of you we like the idea of getting rid of a mortgage as quickly as possible. The idea that a home would be ‘free and clear’ and owned without any encumbrance is a great thought.

Pay down debt faster and save 

If you are mortgage-free but carrying unsecured debt on different loans or credit cards you could benefit from a refinance, home equity line of credit, or home equity loan. Streamlining these debts into a single loan with a payment at a lower interest rate can benefit you in more ways than one. Using your home to secure a loan has never been easier. Each month if your biggest obligation is your mortgage you can rest easy knowing that your mortgage lender is your main creditor.

Debt strategy with help from home equity

Often lenders will want to limit the amount of access to credit you have after paying off your debts during a mortgage refinance transaction. We recognize it’s important to maintain the credit you’ve worked hard to obtain. You can always keep 1-2 credit facilities open in order to maintain and improve your credit score. Use your home equity to get rid of high-interest bills while watching over your credit score.

Is my home equity can control what is paid?

The short answer is yes you can. Depending on how many creditors you owe the best ones to pay off first are the ones costing you the most per month.

High-Interest Credit Hierarchy:

  • Payday loans
  • Credit cards
  • Loans
  • Lines of credit
  • Car loans
  • Outstanding income taxes

Many lending institutions like to ensure if you have misused your credit it does not happen again. There is always a little bit of room for negotiation when deciding what to pay off.

Some factors that are considered:

  • Over limit on a line of credit or credit card
  • Late payments and how many there are
  • Large monthly payments
  • Large balances
  • Credit that is in collections
  • & more

Use your home equity to get rid of high-interest bills, and debt and completely revamp your financial fingerprint.

Advantages of consolidating high-interest debt 

In Canada, it is common to consolidate debt and there are many ways you can choose to do it. Using your home to secure a loan is one of the easier options because you are providing a lender with security and reassurance. In the event, you are not able to make payments or repay the loan as agreed the home security provides additional support.

If you are looking to get approved contact us at 1-855-242-7732 or apply online today.