Debt Consolidation Savings Calculator
Simple Changes Can Have Lasting Impact
Debt Consolidation Calculator
See how much you can save by moving high-interest debt into your mortgage.
Disclaimer: This tool is provided for illustrative and educational purposes only. The results are estimates based on the information provided and standard Canadian mortgage formulas. Current monthly payments for debts are estimated using a standard "Interest + $10" minimum payment formula. Interest rates, fees, and qualifying guidelines are subject to individual credit profiles and lender policies. We recommend consulting with a licensed mortgage professional at Lendtoday.ca before making any financial decisions.
Broker Tip: “When consolidating high-interest debt into a 30-year mortgage, many clients worry about paying interest for longer. Here is the secret: The goal of consolidation is usually immediate cash flow relief. By dropping your monthly obligations from $2,000 down to $400, you aren’t just saving money—you’re buying the ‘breathing room’ needed to stop using credit cards altogether. Once your high-interest debt is gone and your credit score improves, you can always use your mortgage’s prepayment privileges to pay that principal back faster and save on long-term interest.”
Will consolidating my debt hurt my credit score?
Initially, you may see a small dip due to the credit inquiry and the closing of old accounts. However, in the long run, consolidation usually significantly improves your score. By paying off high-interest credit cards, you lower your “credit utilization ratio,” which is one of the most important factors in a healthy credit score.
Can I consolidate my debt even if I don't have a lot of equity?
Yes. While a standard refinance typically requires you to have 20% equity (80% Loan-to-Value), there are specialized programs and alternative lenders that allow for higher leverage. Even if you only have a small amount of equity, we can sometimes find a solution that blends your debt into a new first or second mortgage.
How long does the consolidation process take?
A typical mortgage-based debt consolidation takes about 15 to 30 days from application to funding. This is because it involves a property appraisal and legal work to register the new mortgage. If you need funds faster, a Home Equity Line of Credit (HELOC) can sometimes be set up more quickly.
Should I consolidate all my debts or just the high-interest ones?
We generally recommend focusing on debt with interest rates above 10–12% (like credit cards and retail store cards). If you have a car loan at 0% or 2% interest, it may not make sense to move that into a mortgage at 5% or 6%. Our calculator helps you see the “weighted average” to make the best decision.
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