Question 1

How much can debt consolidation actually save me?

Accepted Answer

Significant. Example: $30K of credit card debt at 21% costs $6,300/yr in interest. Rolling it into a mortgage at an assumed 4.59% (illustrative, not a quote) costs $1,377/yr — annual savings of $4,900. Plus the principal is now amortizing instead of revolving. Whether you save over the full life depends on how quickly you repay the consolidated amount. Confirm the rate against a true refinance.

Question 2

What's the catch with debt consolidation refinancing?

Accepted Answer

Behaviour. Consolidation frees up the cards and lines you just paid off, and if they fill up again you end up with the bigger mortgage and new unsecured debt, with your home securing more of it (FCAC). That is why we recommend closing or lowering the unsecured limits as part of every consolidation file.

Question 3

Will my mortgage payment go up after consolidation?

Accepted Answer

Usually yes — the mortgage balance is larger, so the payment is higher. BUT the TOTAL of mortgage + cards + lines + car payments is typically much lower than before. The bars compare the debt portion only. Your full new mortgage payment depends on the existing mortgage balance and refinance rate.

Question 4

Doesn't stretching debt over 25 years cost more in the long run?

Accepted Answer

It can. A $5,000 credit-card balance you'd clear in 18 months becomes a 25-year obligation inside your mortgage, so even at a far lower rate the lifetime interest on that slice may exceed paying it off fast. That's why we model lifetime cost — shown in the donut above — not just the monthly drop, and often recommend keeping a faster payoff on the consolidated portion.

Question 5

Can I consolidate CRA tax debt into a mortgage?

Accepted Answer

Yes — most A-lenders refinance with CRA debt cleared at closing (no lien yet). Some B-lenders will refinance with CRA arrears paid from the proceeds, typically at lower maximum LTVs than A-lenders; policies vary by lender. See our CRA debt page for the full playbook.

Question 6

How much equity do I need to consolidate into my mortgage?

Accepted Answer

With a prime (A-lender) refinance you can borrow up to 80% of your home's value (OSFI). Your existing mortgage balance plus the debts you roll in must stay under that 80% ceiling, and a HELOC has to fit under the same combined limit. Alternative and private lender limits and fees vary; borrowing above 80% is not assured.

Question 7

What's the difference between consolidating via refi vs HELOC?

Accepted Answer

For a fixed balance you plan to repay over years, a refinance may cost less once break penalties and fees are counted. A HELOC allows flexible draws and repayment. We model both on every file.

Question 8

How much can debt consolidation save me each month?

Accepted Answer

It depends on your balances and rates, but the saving can be significant. A $30,000 credit card balance at 21% costs $6,300 per year in interest alone. Rolling it into a mortgage at today's rates costs a fraction of that. Use the calculator above to see the exact monthly saving on your own numbers — it adjusts in real time.

Question 9

Does consolidating my debt into a mortgage increase my mortgage payment?

Accepted Answer

Your mortgage payment goes up because the balance is larger, but your total monthly outflow — mortgage plus all the separate card and loan payments — is typically much lower. The calculator shows both figures side by side so you can see the net impact before making any decision.

Question 10

What is the maximum I can consolidate through a mortgage refinance?

Accepted Answer

On a prime A-lender refinance, your new mortgage cannot exceed 80% of your home's appraised value. Subtract what you currently owe from that limit — the remainder is the maximum you can roll in. Going above 80% requires a B-lender or private second mortgage at higher rates. We model the LTV on every file.

Question 11

Do I need equity in my home to consolidate debt?

Accepted Answer

Yes — you're borrowing against your home's value. The standard threshold is 20% equity remaining after the refinance (i.e., you can borrow up to 80% LTV). If you don't yet have enough equity, a HELOC or a second mortgage may cover part of the debt. We compare all paths side by side on every file.

Question 12

Is there a fee to consolidate through Mortgage Squad?

Accepted Answer

$0 on standard A-lender refinances. The lender pays our finder fee at closing, disclosed in writing on every file. B-lender and private files may carry a brokerage fee — always quoted upfront and never deducted without your written consent.

Year	Principal paid	Interest paid	Balance
1	$890	$1,543	$37,110
2	$927	$1,506	$36,182
3	$966	$1,467	$35,216
4	$1,007	$1,427	$34,209
5	$1,049	$1,385	$33,161
6	$1,093	$1,341	$32,068
7	$1,138	$1,295	$30,930
8	$1,186	$1,247	$29,744
9	$1,236	$1,198	$28,508
10	$1,287	$1,146	$27,221

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