By consolidating your personal and unsecured debts, you can reduce the interest you pay on all of your debts, increasing your cash flow and paying them off quicker. You can be debt-free sooner.
Consolidate with an all-in-one mortgage to reduce the mortgage payment and increase your cash flow.
There are a few things that borrowers would want to know more about this mortgage solution. Contact your local mortgage broker or book a free consultation with one of ours for more details.
Eliminate High-Interest Debt First
Prioritize by eliminating the highest-interest debt first, and work down the list of consolidating other personal debts in decreasing magnitude.
Bruised Credit Not A Problem
Borrowers with bruised credit can qualify for debt consolidation as long as they have plans on improving their credit score going forward and sufficient equity in the real estate property.
Simpler Debt Structure
Consolidate multiple debts into one affordable mortgage loan with a lower interest rate that is locked in for the entire Term. This method mitigates the risk of changing interest rates while you work on eliminating the debt.
At Richmond Hill Mortgage Broker, we work with lenders who are reputable and have established outstanding levels of customer service, integrity, and compliance with regulatory authorities.
Debt Consolidation in Richmond Hill
Debt consolidation is a popular debt reduction technique which allows you to consolidate multiple debts into a single loan, reducing monthly payments and the total interest owed. It is a great way to pay off high-interest credit cards or another personal loan that you may have and can save you thousands of dollars in interest. The best debt consolidation loans offer flexible repayment terms, low or no fees, and are available from various lenders.
However, it is crucial to remember that debt consolidation has its downsides. For example, you may need to catch up on payments or have a larger overall balance than initially intended. While this isn't bad, you should be aware that a large debt can hurt your credit rating if you are late on payments. Therefore, you should evaluate your debt before applying for a debt consolidation loan to ensure the new balance is affordable.
Whether you opt for a debt consolidation loan or a debt settlement, you must do your homework and compare the options. These can include comparing interest rates, origination fees, and repayment terms.
Depending on your credit history, you might qualify for a debt consolidation loan. Credit unions, banks, and finance companies can offer you a debt consolidation loan through a mortgage broker. Before applying for a debt consolidation loan, you should be prequalified to ensure you qualify for the maximum amount of money and find out if the new debt burden is affordable.
Using a debt consolidation loan to consolidate your debts can improve your credit score and reduce the interest you owe. This is because when you consolidated your high-interest loans to a low-interest loan you can get out of debt faster. Although it won't eliminate your bad financial habits, it can make it easier to stick to a budget and pay off your debts.
If you need help determining whether or not you qualify for a debt consolidation loan, consider working with a mortgage broker to find out if it's the right solution to your financial situation. A local mortgage broker enables you to compare offers from multiple lenders based on your credit profile. In addition, you'll have access to a free debt consolidation consultation.
The most common reason people use a debt consolidation loan is that they have multiple high-interest credit card debts. When you combine these bills into a single payment at a lower interest rate, you will likely make your payments on time and get out debt sooner. However, you still need the discipline to make your payments, you could avoid falling behind.
Debt consolidation is a great way to simplify your debt repayment process and make it easier for you to stay on track to pay off your debts. However, it's essential to consider that your new payments must be affordable.
FAQ on Debt Consolidation
Does It Hurt Your Credit to Consolidate Debt?
Debt consolidation is an option to simplify your finances and pay off your debt more easily. When done correctly it does not hurt your credit score. By consolidating numerous debts into one at a lower interest rate will help you to pay off your debt faster and improve your credit score sooner. When consolidating debt, the key is to be sure that the new debt balance is affordable and place you in a better position to pay off your debt faster.
What Credit Score Do You Need to Consolidate?
Qualifying for debt consolidation is easier than most people think. Yes, the credit score is one of the critical factors considered by mortgage underwriters when qualifying a borrower. However, the credit score is not the only deciding factor. Having enough equity in the property to cover the personal debts that will be consolidated into one mortgage loan is more important.
Many borrowers concerned about their credit score when qualifying for debt consolidation may be surprised to know that they can qualify even with a bruised credit score of 500 or above. Mortgage brokers who have access to alternative lenders are most capable of helping borrowers with debt consolidation no matter how low their credit score is.
How Much Does It Cost to Consolidate Debt?
The cost to consolidate debt depends on which solution is employed. For example, debt consolidation using a credit card balance transfer will incur a balance transfer fee of between 3% to 5% or more, depending on the credit card issuer. However, the more prudent solution is to consolidate debt using the available equity in a real estate property because, with this solution, borrowers do not incur any credit card balance transfer fee.
Debt consolidating using the equity in the property can be done with the current mortgage lender or a licensed mortgage broker. When working with a mortgage broker, there may be a broker fee, a one-time fee that can be amortized into the mortgage loan amount.
Debt consolidation is dangerous when it is not done correctly, where the new interest rate is higher than the previous debt interest rate. In this case, the cost to consolidate debt is astronomical as borrowers dig deeper into debt instead of getting out of debt sooner. Avoid this at all costs.
Justin W, Richmond Hill
As a first time home buyer I was very nervous about buying a home. The professional staff at Matrix Mortgage Global took the time to answer my questions even after hours. I was very pleased with the service and how I was treated.
Jignesh S, Toronto
I'm a self-employed cab driver. I was devastated when my bank, with whom I've been banking with for years turned me down for a mortgage. My business is mainly cash, and I didn't meet the bank's criteria for proving my income. I found Matrix Mortgage Global online and decided to give them a call. I was surprised that I got approved. I thought that if my bank turned me down everyone would. Thanks!
Andrea C, Markham
I had 2 yrs left on my consumer proposal, with the 2nd mortgage offer by Matrix Mortgage Global I was able to pay off the proposal and re-establish my credit
You Can and You Will Be Approved
Experience brings wisdom.
This is why you work with a 5X Broker of The Year.
We have a history of total funded mortgages of over $2.3 billion since 2008 and counting.
Recognized by Authorities
RECA, FSRA, FSCO, BCFSA
Proven Track Record
Since est. 2008
Canadian Mortgage Brokerage
Serving Richmond Hill, and neighbouring cities in Ontario.
2018-2022 Mortgage Brokerage Of the Year from Canadian Mortgage Awards
You deserve a mortgage that is customized to you.
And there is a mortgage brokerage that believes that too.
One that has been helping clients get approved since 2008.
Over $2.3 dollars of mortgage funded in history working with you.
Matrix Mortgage Global mortgage agents and brokers understand the significance of responsible borrowing and lending. Unfortunately, it was an expensive lesson many learned from the Global Financial Crisis in 2008 that happened because irresponsible mortgage lending qualifications were unchecked.
Enjoy the peace of mind from knowing that you are working with someone who has a deep understanding of the mortgage industry and will work smart to get you the best possible deal.
Gain Access to Top Conventional and
Alternative Mortgage Lenders in Canada
Qualifying for a mortgage used to be easier than it is now.
But it doesn’t mean you can’t get professional help to qualify.
Reasonable mortgages are accessible to borrowers today.
Stay Up to Date With The Latest News & Updates
You'll receive a weekly newsletter that is customized to your interests.
Mortgage Learning Hub
SOLUTION-BASED LENDING READING ARTICLES
The smartest way to find a mortgage that works for you.
A Mortgage for All Life Situations
Better Options with
Consolidate to an all-in-one mortgage to cut down the mortgage payment amount and increase your cashflow.
Tap into the available equity from appreciation as a revolving credit line and use the fund for any reason, such as home renovation projects or buying passive income properties.
Going through a relationship breakup is hard enough, but trying to find the best mortgage solution on top of that can be difficult. Work with professionals who emphasize client-relationship confidentiality.
Renegotiate the terms of your mortgage and draw the available equity from the property.
Get approved for special programs and incentives exclusive for First Time Home Buyers.
Get approved for special programs and incentives exclusive to New to Canada residents.
Compare best mortgage rates and lending terms with insights from mortgage brokers who are professionals in the industry.
Get approved based on your business gross income and bank statements. Don't let the bank stop you from having the best mortgage.
Qualify for the best mortgage terms from lenders who are supportive of real estate investors owning up to four rental doors.