Some key points to keep in mind.
If you have your own home property, one alternative way of paying your debts is to consolidate your debt and take out a home equity loan. In this way, you can use the money to pay off your card debt. Sometimes, you may have to put all your eggs in just one basket, as they say. But, of course, before you do, you would want to consider the risks and some possible alternatives.
Consolidating your debt is one of the best methods for you to eliminate your high-interest debt. In this way, you could also streamline a repayment plan and most likely save your money in the long run.
Further, you can look at debt consolidation as combining two or more loans into one. This kind of mortgage is a long-term loan that provides you the benefit of paying off several debts at the same time. So if you are to use a home equity loan to pay off multiple credit cards, you will only have one bill to settle for every month rather than several.
Why consolidate debt into a home equity loan?
Home equity loans are particularly one of the best tools in debt consolidating as it usually comes with long repayment timelines and low-interest rates. Home equity is the difference between the remaining mortgage balance and the value of your home. This kind of mortgage uses your home to secure a loan. In one more case, it means that you are using your home as collateral to secure your current and existing debt.
The money you borrow from this loan can be used for nearly any purpose, such as credit card debts or consolidating multiple loans. And the amount of money that you can borrow will depend on the amount of accumulated equity that you have.
Typically, you can borrow a larger amount of money with a home equity loan at a lower interest rate than you can with an unsecured loan. A home equity term loan usually is in the form of a one-time big-time amount of money. This amount can be up to 80% of the appraised value of your home, minus the balance of any prior mortgage that you have. And the home equity loan has to be repaid over a specified term unless renewed.
Many residents in Canada are taking good advantage of refinancing some of their mortgage equity to reduce their high-level credit card debt. To think of this, it is much better to pay a much lower interest rate than pay high-interest rates that you have on your bank’s credit card debt. So, why not add that debt to your mortgage and get those bad debts out of your way?
Debt Consolidation Mortgage Will End Your Huge Credit Card Debt
Debt consolidation mortgage is the best financial product for people struggling with multiple debts that suck high interest rates as in credit cards.
Let us look at how the debt consolidation process works with a lender, the amount, rates, loan tenure, documents needed plus how guidance by a mortgage broker will help and what are the other options to streamline debts.
Debt consolidation involves paying off high-interest debt with a lower-interest loan that can save substantially on interest payments. Given the low mortgage rates existing now, many debt consolidation options such as refinance or home equity loans are open for borrowers as a secure way to save good money.
Mortgage for debt consolidation helps people struggling to do monthly payments as it can render reduced payment per month with best mortgage rates suitably scripted under expert guidance.
Benefits of a Debt Consolidation Mortgage.
Consolidate high-interest rate credit cards to a lower interest rate; Home equity loans usually have a lower interest than bank credit cards because a residential property or a house secures it and serves as collateral for the loan. With this, it increases the likelihood and possibility that the loan will get repaid. If you have various outstanding debts, consolidating these with a home equity loan could make it more reasonable to pay off the debts.
Lessen monthly payments, save money, and increase cash flow, Getting a home equity loan to consolidate your debt will naturally lower your monthly payments because you will likely pay with a lower interest rate at a longer loan term. If you have a tight budget, the money you save each month could be what you exactly need to get out of debt. However, if you extend the length of your loan term, you might be paying more interest at an overall look. Moreover, having a singly monthly payment decreases the odds of you missing a payment.
Reduced stress with a manageable financial situation. The reduced interest rate means the monthly payments you will have to settle should be lower, and you just simply have to make one payment every month. So, with these smaller payments, you avoid the hassle of paying several bills and missing a payment or even paying late. It is just as natural that having just one payment to take care of can ease your stress and help many people ensure on-time payment.
More Pros of Using Home Equity for Debt Consolidation.
- Flexible repayment options
- Lower interest rate
- Lower monthly payments
No prepayment charge
Only pay interest on used funds
Pay off debt quicker
- Possible tax deductions
- Reusable credit
Accessing and obtaining home equity as a refinancing tool is easy, especially for Canadian residents. Getting home equity seems logical, but it is fraught with risks, and you could wind up losing your home. So before you commit to consolidating your debt with a mortgage, speak to one of the top mortgage brokers in Canada, Saif Abdulah.
He is the best mortgage broker you can find as he will help you know the benefits and the drawbacks of debt consolidation.
Saif Abdulah will make you aware of your options so you could make the right decision. It’s time to beat your banks!
End credit card debt
Debt consolidation works well for high-interest loans, mainly in credit cards. The debt consolidation deal with lenders will combine all outstanding debts into a big single loan that is easy to manage. Apart from credit cards, other high-interest debts that can be consolidated include the following.
- Auto loans
- Personal loans
- Student loans
Debt consolidation mortgage enjoys the foremost credit one tag as the mortgage process is hassle-free and gives quick funds, brings a great reduction in monthly payouts, unlocks savings and enhances cash flow.
Debt consolidation allows adding up all outstanding debts into a single loan whose monthly payment plan gets suitably segmented with a lower interest rate and longer payment period. This mortgage loan will take the home as the collateral.
Debt consolidation is a great option for a homeowner who is already running a mortgage to ease the pressure of other debts. There is a recurring question– can I consolidate my debt into my mortgage? The answer is yes and if you solicit guidance from a best mortgage agent like Saif Abdulah of Ontario.
While scouting for a loan to consolidate debt, a mortgage expert will advise the best one. There are at least the top 3 options such as the following.
- Taking a second mortgage
- Home equity line of credit (HELOC)
Saif in Ontario is a highly experienced, professional mortgage specialist who can offer the best support with his competence that outshines even a mortgage calculator data in the area of debt consolidation loans.
How to consolidate debt with a mortgage
Debt consolidation mortgage as a secured loan offers attractive options including mortgage refinance, a second mortgage, or a home equity loan. All the privileges of secured loans such as lower interest rates and larger sums compared to collateral-free unsecured loans will go to the debt consolidation mortgage as well.
Customers feel comfortable when details are explained to questions like how do I consolidate my debt into my mortgage and how to consolidate debt with a mortgage in a debt consolidation option.
Debt consolidation in Canada has many pathways for debt consolidation in the mortgage. A debt consolidation loan can abolish an array of debts of varied interest rates that squeeze monthly payments of many sizes. The debt consolidation loan may equal the amount owed on existing debts or higher than that.
Consult the best mortgage broker
Solutions like debt consolidation refinance mortgage and debt consolidation remortgage is best presented by the top mortgage broker Saif to assist a debt consolidation Toronto deal.
The best mortgage agent will also advise the benefit of merging high-interest debts including credit card debt, auto loans and personal loans on a low-rate mortgage loan.
The debt consolidation mortgage Canada and the associated processes with debt consolidation mortgage lenders including debt consolidation Ontario will be safe in the hands of an expert mortgage specialist like Saif.
Consolidating debt in a secured loan backed by the collateral from the home equity in property wins low-interest rates.
Depending on the borrower’s profile, the debt consolidation in Canada can include debt consolidation with mortgage refinance as the best mortgage for debt consolidation and also 2nd mortgage debt consolidation as popular options.
Guidance of the best mortgage agent in Canada can have hassle-free navigation to the debt consolidation process.
As the leading mortgage specialist, Saif will study debt portfolios and sort out good and bad debt. His advice for a well-planned mortgage or debt consolidation loan is always timely.
In Ontario Canada, the best mortgage for debt consolidation can come up with the assistance of Saif who offers guidance on the best products suiting every individual.
Debt consolidation with best lenders
Vast contacts among lenders including national banks and private lenders along with tons of ideas as in the inventory of home depot, Saif is very strong in negotiating a debt consolidation plan including second mortgage with the right lenders and private lending parties.
Mortgage refinancing makes sense if the applicant wants to use home equity for a new mortgage deal and access funds of long amortization and lower mortgage rates.
Saif will pitch the right mortgage lenders including big lenders for debt consolidation loans as debt consolidation Scotia bank and debt consolidation TD. Saif with his financial planner eye handles debt consolidation mortgage cases with extreme finesse.
Debt consolidation illustrated
One example will illustrate the whole gamut of debt consolidation in Canada. Suppose Peter Smith in Canada has $50,000 in equity in his home and has the following outstanding debts including two credit cards:
- Credit Card 1 debt- $10,000 – 15% interest rate – monthly payment -$350.00
- Credit Card 2 debt- $ 8,000 – 17% interest rate – monthly payment $300.00
- Car Loan debt $12,000 – 10% interest rate – monthly payment $253.00
- Personal Loan – $15,000 – 15% interest rate – monthly payment $353.00
- Total debt $45,000 – monthly payment $1256.00
If Peter can borrow $45,000 against the equity in his home either as a second mortgage or as a home equity loan he can liberate from the high-interest loans. The bank will pay off each of the loan holders and relieve Peter from further obligations.
What Peter gets is mental peace and good savings. As a major financial relief, he will also get a 5 per cent interest rate loan and a 30 year amortization period to repay it and his monthly payout will be $240 saving more than $1,000 a month.