Mortgage Blog

Working For You, NOT The Banks!

Debt Consolidation In Toronto Using Home Equity

June 25, 2020 | Posted by: Jeffrey Kioussis

Debt Consolidation Toronto Using
Home Equity

There is nothing worse than paying thousands of dollars in avoidable interest payments and fees.

We know, because we’ve been there. We are here to help you with easy, honest advice with a professional, non-judgemental setting.

It’s easy to lose sight of being locked into long-term, high interest rate product and services through time. It’s hard to see that there can be a solution as simple as using the existing equity in your home to alleviate all that pressure and stress.

Canadian consumer debt is at record highs of approximately $30,000.00 per person or $60,000.00 per household at an average interest rate of 19% per year. This means that the average household pays over $11,000.00 per year credit card interest payment alone!!! What if there was a solution available that can help you save $5,000.00, $8,000.00. Even up to $9,000.00 per year on that same loan…wouldn’t that be something you would be interest in?

Whether it be a high debt load you have, need cashflow to carry through a slow time, CRA tax arrears, personal loans you want to repay or just want a little extra cash to take advantage of a new opportunity or investment…there has never been a better time to finance than now!

ITS TIME TO TAKE CONTROL OF YOUR FINANCES!
ITS TIME TO UNLOCK THE POWER OF EQUITY IN YOUR HOME

This is a safe, secure and financially a better option than alternatives. Such as high interest, unsecured consolidation loans and far better than missed payments, defferals, foreclosure, bankruptcy & legal action.

There are a multitude of options available to help. Before we explain those to you, lets talk about the pros & cons of using the equity in your home to consolidate debt.

PROS
Lower monthly payments…Period
o Yes its true. You will pay the same amount owing with less money. How you ask? We will lower your monthly interest payments GUARANTEED.
Fewer payments required
o Instead of 4-10 separate payments you will need to make per month we will consolidate your payment into one simple payment.
Payments consistent and predictable
o Fixed payments for one account. Makes planning the rest of your life easy.

Ability to repay debt quicker & more effectively
o Same debt, lower interest rate…no catch.

Added cashflow
o With the lower interest rate the difference between your current payment and your new payment is added back to your pocket.

Less stress
o Imagine paying a fraction of your current bills while servicing them all. Would that not help with your stress level?

Improved Credit
o By consolidating your unsecured debt into secured debt you will alleviate what is known as bad debt (credit cards, arrears) and turn them into positive debt (mortgage) which improve your financial position and thus improve your credit significantly.

SAVES YOU MONEY $$$$$ INSTEAD OF WASTING YOUR MONEY ON HIGH INTEREST PAYMENTS

CONS
Such a large debt
o This is a mind trick. The amount owning is still the same however it is all put into one loan instead of 10 different items.

Penalties and fees associated with the consolidation
o Penalties such as early discharge, legal and appraisal fees are factored into your consolidation loan. These are not applicable with all products however some do carry a cost. All charges and fees are always disclosed to the borrower prior to closing.

Less flexibility with payments
o Most products carry a fixed interest rate with a repayment schedule. Although there are exceptions to this, it is pretty straightforward.

What if I incur more debt?
o Certain loans will require you to close credit cards or revolving credit accounts. If not, it is advisable to use personal money management to avoid falling into the same trap or simply ask a professional for some guidance and help. We are more than happy to refer you to a licenced financial planner at any point.
o Closing credit accounts could harm your credit rating however the larger picture of the repayment of the debt overall will cause a positive impact.

Am I risking my home?
o With a secured loan on your home, technically yes. However, all the alternatives regarding personal debt will have the same eventual result. A safe, cost effective and easy alternative is best.

Can I qualify?
o Well of course you can! There are products available for persons in all walks of life. Whether you are credit challenged, between jobs, recently separated/divorced, have other circumstances or even have already been turned down by other lenders we can help.

WITH ALL THE ALTERNATIVE OPTIONS AVAILABLE, HARNESSING THE EQUITY IN YOUR HOME TO CONSOLIDATE YOUR DEBT CAN BE THE EASIEST AND MOST EFFECTIVE WAY TO BETTER YOUR SITUATION

How can we help?

Here are a few simple products offered to home owners.

Home Equity Take Out/Refinance
This is a total refinance of your current mortgage to include the additional cash required for the debt payment.

New 1st Mortgage
This is similar to the home equity take out/refinance however this would be something
Done if the entire mortgage is taken to a new lender

HELOC
Home equity line of credit, this is a credit line, secured on your home offered at a much
Lower rate than a traditional unsecured credit card

2nd Mortgage
This is an additional mortgage that is added behind an existing 1st mortgage.

Some details, pros & cons for each of the scenarios below

SOLUTION PROS
CONS

Refinance / Home Equity Loan

-       No Fee Solutions Available

-       Not Switch From Existing Lender

-       Lower Total Monthly Payment

-       No Penalties

-       Instantly Improved Credit

-       Consistent, Single Payment Schedule

-       Locked In With Current Rates






-       Not Available with all lenders

-       Could Influence Your Current Mortgage Rate

-       Could Take Up To 90 Days

-       Qualification Factors

-       Can Dictate Where Additional Funds Are Appropriated Towards

-       Long Term Loan

-       Legal Fees






New 1st Mortgage

-       If timed properly, no fees or minimal fees

-       Current, competitive market rates

-       Lower Total Monthly Payments

-       No Penalties, Minimal Penalties if Timed Right

-       CURRENT LOWEST RATES

-       Instantly Improve Credit

-       Consistent, Single Payment Schedule

-       Locked In Current Rates





-       Must Apply With A New Lender However Qualification Factors Are More Flexible

-       Appraisal Required.

-       Could Take Up To 90 Days

-       Possible Penalties With Early Discharge Of Current Mortgage

-       Long Term Loan

-       Legal Fees

HELOC /
Home Equity Line Of Credit

-       Quick Approval

-       Easy Accessibility

-       Competitive Rates

-       Repayment Schedule Not Fixed

-       Rotating Credit (Can Be Used Over When    Repaid)

-       Can Be Without Legal Fees

-       Can Offer Interest Only Payment





-       Existing Mortgages Might Not Allow This

-       Usually Higher Interest Rates Than 1st Mortgage Products

-       Existing Mortgage + HELOC Payment

-       Slower Credit Repair

-       Annual Fees May Be Applicable

-       Interest Rates Changes According To Market Rates

2nd Mortgage

-       Quick Financing

-       Very Flexible Qualification Factors

Ie. Easy To Qualify

-       Instantly Improve Credit

-       Lump Sum Payment

-       Does Not Affect Current Mortgage

-       Interest Only Products

               -       Short Term Loans

-       Highest Interest & Fees

-       Existing Mortgage + 2nd Mortgage Payment

-       Legal Fees

              -       Appraisal Required 
Our goal is to place you in the most appropriate product best suited to your needs, means & goals in a safe, secure and predictable environment. We will professionally asses your needs on an individual basis and find solutions tailored for you. There is no obligation and no requirement from you.

Be smart enough to know when you need help and brave enough to ask for it.

Its time to ask…Lets begin your journey to a DEBT FREE YOU today!




Back to Main Blog Page

users image

Hi, How can I help you?

clc mortgagestaxi fareclc mortgages