Get a Debt Consolidation Mortgage

When debts have you in over your head, a debt consolidation mortgage could give you needed breathing space. 

Including debt in a mortgage cuts your monthly expenses down to size. You guessed the downside. Your payments are stretched over the entire term of a debt consolidation mortgage (six months to 10 years) or, worst case scenario, the amortization period.

Sage advice for any homeowner — be careful what debt consolidation mortgage terms you agree to.

Quick Read

Is it possible to consolidate all my debt into my mortgage?

How does debt consolidation work with mortgages?

Does consolidation affect credit scores?

What to do if your credit score is poor

Other ways to lower your bills

Passing the mortgage stress test

Debt consolidation papers

When to Consolidate Debt in a Mortgage

What is a mortgage consolidation loan? Just the financial relief you get from:

  • paying bills on time
  • reducing monthly payments
  • and knowing your debts will be paid in full. 

Your mortgage lender assesses your ability to make a single monthly payment. Your other debts are paid in full, and the new amount consolidated with your existing homeowner debt in a mortgage.

Mortgage renewal vs refinance — what to do when interest rates dive. 

How a Debt Consolidation Mortgage Works

If you’re just barely making the minimum credit line or interest payment every month, your debts may be piling up with no way out. 

We suspect making a single monthly payment for all your debts sounds pretty good. And it can be. Picture paying just 3% to 5% for a debt consolidation mortgage, instead of 29% in  annual credit card debt.  

Consolidate debt in a mortgage by refinancing your home

As long as you don’t spend too freely with the savings you get, including your debt in a mortgage can:

  • free up cash to pay toward the loan principal
  • salvage your credit score
  • make homeownership affordable again.

Does It Look Bad to Consolidate Debt?

Not at all. Credit card lenders and banks are looking for borrowers who live within their means. 

Demonstrating you can manage debt, and find ways to consolidate high interest credit card payments or loans, lowers the risk you will default if they lend to you again. As long as you make the payments on time, getting a mortgage to consolidate debt won’t damage your credit rating at all.

Personal credit report documents

If Your Credit Score is Poor

A poor credit score doesn’t have to hold you back when you get a mortgage to consolidate debt through a private lender. Second mortgages from private lenders are based on your home’s appraised value, location, and condition, not your income or credit rating. Read this for more on how private mortgages work

Other Ways to Reduce Your Debts

Not convinced including consumer or credit card debt in a mortgage is the right option for you? 

Lend to yourself with a RRSP mortgage or downsize your house to get out of debt. You can always go to a credit counselling society if you’re in dire straits. It could temporarily cost you your credit score, but it’s better than letting debt get the better of you and your finances.

Calculate Your Mortgage Limits

New rules for mortgage eligibility came into effect in June 2021. Whether you refinance or renew, you’ll need to prove you can still afford a mortgage if interest rates go up. First time home buyers, stretch your down payment further by opting for a condo, townhouse, or rowhouse in Toronto or Ottawa, or a modest starter home farther out. 

To calculate mortgage affordability under the new rules, read our “New Stress Test for Real Estate“. You can still borrow your down payment, just not through CMHC. 

Talking with a client

Why You Need a Real Estate Lawyer 

Consolidate debt in a mortgage, or discharge mortgages in Ontario to refinance your home. Axess Law’s licensed real estate lawyers (Ontario only) prepare legal documents you need to add or remove mortgages to title to your property. We have law offices in the Greater Toronto Area or Ottawa, or can virtually video conference with you anywhere in Ontario.

Why do I need a lawyer to discharge a mortgage in Ontario? 

Axess Law liaises with your lender to receive their mortgage directions. Our experienced real estate lawyers search title to property you own for financial encumbrances, like construction liens, that can delay mortgage approval. We inform you if we find anything of concern. 

What a real estate lawyer does

Your lender is listed on title to your property when we register your new debt consolidation mortgage or mortgage refinance. Discharging a mortgage? We clear your former lender from title so you can sell or refinance your property without any further legal obligation to them.

What to know about mortgage discharge in Ontario. 

Firm offer, all-cash real estate transactions require the services of an Ontario real estate lawyer. We receive your realtor’s agreement of purchase and sale, and process transfer of title so you can take legal possession on time. 

Access Lawyers Remotely Anywhere You Are

Our virtual real estate lawyers bring legal services to you anywhere in Ontario. You can network online with Axess Law from your home computer, laptop, tablet, or any compatible mobile device. Our remote real estate lawyers connect with you via secure, confidential video conferencing services.

How virtual real estate lawyer services work. 

If you’ve never used virtual videoconferencing for legal services before, we show you how to e-sign and get real estate documents witnessed online. 

Use Our Virtual Flat Fee Lawyer Services 

Real estate lawyer fees in Ontario are a lot more affordable when you use Axess Law. Axess Law keeps our flat fee lawyer services low by charging for only the legal services you absolutely need. Ask about low flat fee real estate lawyers today.

Find your CMHC debt service ratio

Quick Phone or Online Appointment Booking

Make instant appointments, day or evening, 7 days a week, with Axess Law’s online booking form. Our flexible appointment times fit your lifestyle. Or call our 1-877-402-4277 lawyer line (647-479-0118 in Greater Toronto Area) to speak with a live operator about scheduling your next appointment. You can drop by any Axess Law office to make in-person appointments, if that’s more convenient for you. 

Try our onsite parking, and take the TTC. Axess Law has easy transit access.