Debt Consolidation Victoria BC
Ready To Consolidate Your Debt Into Your Mortgage?
Is debt eating into your retirement savings and keeping you awake at night?
If you’re like a lot of Canadians, the answer is yes. According to The Canadian Press, nearly half of Canadians are within $200 of insolvency. It’s a stressful position to be in. Maybe you’ve been dealing with a family emergency or you just made a mistake by spending more than you can afford.
But if you’re reading this, you’re probably ready to make a positive change in your life. It’s time to get your finances in order, but you need help to know where to go from here.
That’s where I can help.
If you own a home, using your equity is probably a wise bet. It’s using smart money at a low interest to pay off what is likely high interest debt.
If you own a home, debt consolidation might be the answer
Here are a few benefits of consolidating your debt:
- Cash Flow Improvements: You reduce monthly payments, which can free up cash flow. A $350 car loan payment could become less than $100 when part of your mortgage. You’re still able to use the extra $250 and apply it to your mortgage and pay it down faster.
- Lower Interest Rates: Because mortgages are secured by your home, the interest rates are much more attractive. Compared to credit cards or personal loans, you can save a lot of money in interest.
Types of debt that can be consolidated:
- Credit card or personal line of credit
- Car and truck loans
- Personal loans
- Student debt
- CRA tax debt
- HELOCs (Home Equity Line of Credit)
Debt consolidation isn’t a solution for everybody. Here are a few requirements you’ll likely have to meet if you want to move forward:
- Homeowner: You must own a house or a condo to do a debt consolidation mortgage
- Location: The property must be in a municipality with over 5,000 residents, or be within driving distance of a major urban centre
- Loan to Value: We can refinance up to 80% of your home value, including your current mortgage. For example, if your home is worth $300,000, your maximum total mortgage, including existing mortgage(s) can be $240,000. ($300,000 x 0.80)
- Income Taxes: You must have filed your personal income taxes up to the most current year
If you’re unsure about any of the above, don’t worry – I can walk you through everything over the phone. Even if you don’t think you qualify but want to discuss your options, I’m always here for you.
How It Works
Schedule a Call
This is a confidential and judgement-free call. I’ve helped a lot of clients in the same situation, and I can absolutely empathize with how the stress you’re feeling. Simply schedule a time in my calendar or reach out by phone or email to get started.
We’ll work together to assess your current financial situation and your goals, then I’ll put together a debt consolidation action plan for what we can do right away. I’ll present you with 1-3 options, and you pick which one we do.
I’ll send you a simple step-by-step checklist of documents required to start consolidating your debt. Whenever you're ready, send me your documents and we'll move forward swiftly. There's no obligation.
Frequently Asked Questions
What are the most common reasons for being declined a debt consolidation mortgage?
There are two most common reasons a client is declined:
- If their income can’t support the mortgage payments
- If the existing mortgage amount is too high, releative to the value of the home. A quick way to tell is to take your existing mortgage amount plus all the debt you want to pay out, and divide it by your estimated home value. That number shouldn’t be any higher than 80% (0.80).