Debt consolidation with your BC mortgage: see the real cost first.
If credit cards and loans are eating your month, rolling them into your mortgage can lower your monthly payments. It can also cost you more over time, and it puts the debt against your home. I'm Matt, a licensed BC mortgage broker. I show you both sides by phone or video so you can decide with the numbers.
How debt consolidation through your mortgage works
You refinance your mortgage for a larger amount, use the extra to pay off credit cards, lines of credit or other loans, and make one mortgage payment instead of several. Mortgage rates are often lower than credit card rates, which is why people consider it. In BC, lenders generally limit how much of your home's value you can borrow against, so how much you can consolidate depends on your equity, income and credit.
What it can cost you
I'd rather you hear this from me before you sign.
- More interest over time. A lower payment spread over a long amortization can mean you pay more in total, even at a lower rate. I show you the total cost, not just the monthly payment.
- Your home secures the debt. Credit card debt is unsecured. Once it's in your mortgage, it's secured against your home.
- A possible prepayment penalty. Refinancing before your term ends can trigger a penalty. I calculate it first.
- Fees. Appraisal and legal costs may apply. I tell you what to expect.
Is it right for you?
It can make sense when your payments are straining your budget and the total cost still works in your favour. It may not make sense if the debt is small, you're close to paying it off, or the penalty outweighs the savings. If consolidating isn't the right move, I'll say so, and we'll look at other ways forward. Already planning a renewal? See renewing or refinancing.
How it works
- Tell me what you owe, what you pay each month and what your mortgage looks like today.
- I compare lenders and show you the options side by side: payment, total cost and penalties.
- You decide. If you move ahead, I handle the application and paperwork. My compensation is disclosed to you in writing before you decide.
Debt consolidation in your city
Home values, and so your available equity, differ across BC. See local numbers on the city pages: mortgage broker in Prince George, mortgage broker in Victoria, mortgage broker in Nanaimo, mortgage broker in Duncan and Cowichan Valley, mortgage broker in Kelowna and mortgage broker in Kamloops.
Questions people ask
If debt is eating your month, let's look at the numbers together. One call, no pressure.
Book a callCan I consolidate debt into my mortgage in BC?
It depends on your home's value, your current mortgage, your income and your credit. A short call tells me where you stand.
Will consolidating hurt my credit?
Paying off cards can help your credit utilization over time, but a refinance involves a credit check and a new mortgage. I ask for your permission before checking your credit and explain what to expect.
Is a lower monthly payment always better?
No. A lower payment can mean more interest over the life of the mortgage. I show you the total cost so you can compare.
What if I have missed payments or a low credit score?
There may still be options, but they vary by lender and cost more. Tell me your situation and I'll tell you straight what's realistic.
Tell me what you're working on.
Send a few details and I'll follow up. Would you rather talk now? Pick a time that suits you.