Trade five high-interest payments for one low one.
Credit cards at 20%+, lines of credit, car loans, tax debt — rolled into your mortgage at a fraction of the rate. Lower your total monthly outflow by hundreds, sometimes thousands.
Up to 80% LTV refinanceOne single paymentPrime + alt optionsCashflow reliefSecond mortgage or HELOCBreak-penalty math included
The average Canadian carrying a credit-card balance is paying 19.99-22.99% interest, plus a line of credit at prime-plus, plus a car loan — three or four payments, all eating your cashflow, none of them shrinking the balance much. Meanwhile your home has equity sitting idle. A debt consolidation mortgage puts that equity to work: pay every high-interest balance off in one move and replace them with a single mortgage payment at a far lower rate. The math is often dramatic — it’s common to cut total monthly payments by 40-60% even after accounting for the larger mortgage.
What you get
Why Canadians choose Mortgage Squad Advisors.
Pay off credit cards, lines of credit, car loans, student debt, and tax arrears in one refinance
Replace 19-23% credit-card interest with mortgage-rate interest — often a 4-5x reduction
One predictable monthly payment instead of five competing due dates
Up to 80% loan-to-value on a refinance; second mortgage or HELOC where a full refinance isn’t ideal
Free up hundreds to thousands in monthly cashflow — money back in your budget
Prime A-lender pricing if your credit qualifies; B-lender or private if it doesn’t
Paying off maxed-out cards can lift your credit score within a few cycles
We model the break penalty on your current mortgage so the savings are real, not theoretical
Option to keep the consolidation as a second so you don’t disturb a low first-mortgage rate
All lender + broker fees disclosed in writing upfront
Instant check · no credit pull
Could consolidating cut your monthly payments?
Roll high-interest debt into your mortgage at a far lower rate — see the monthly difference.
$60,000
Debt you could consolidate (to 80% LTV)
$1,800/mo
Now (min payments ~3%/mo)
$387/mo
Rolled into mortgage
$1,413/mo
Estimated monthly cash-flow saving
Estimates only — a licensed advisor confirms your file. FSRA #13737.
Send us every balance and its rate — cards, lines, loans, tax debt. We total the monthly payments and the blended interest you’re paying today. Takes 15 minutes and no bureau pull to begin.
2
Model the consolidation
We compare three structures — full refinance, second mortgage, or HELOC — including any break penalty on your existing mortgage, and show you the new single payment and total monthly savings in writing. You see the real number before committing.
3
Fund + free your cashflow
Your lawyer pays each creditor directly at funding, so the debts disappear and your title reflects one clean mortgage. Most clients walk away with hundreds to thousands more in monthly cashflow — which we’ll help you redirect to savings or accelerated paydown.
Consolidating works by borrowing against your home’s equity to retire every high-interest balance at once. We refinance your mortgage — or register a second mortgage or HELOC behind it — for enough to clear your credit cards, unsecured lines of credit, car loans, student debt, and even CRA tax arrears in a single move. At funding, your lawyer pays each creditor directly, so the balances vanish and your title reflects one clean mortgage instead of a stack of competing due dates.
The mechanics matter because the interest gap is enormous. A maxed card at 19.99–22.99%, a line of credit at prime-plus, and a car loan at 8–10% get replaced by financing in the mortgage-rate range — often a four-to-five-fold reduction on the most expensive balances. You don’t owe dramatically less the day after closing; you owe roughly the same total at a far lower blended rate, with one payment. That structural shift — not magic — is what frees up hundreds, sometimes thousands, in monthly cashflow.
Does a lower payment actually save you money, or just stretch the debt?
This is the question most lenders skip, and it’s the one that decides whether a consolidation is a real win. A lower monthly payment is not the same as lower total cost. If you take $50,000 of credit-card debt that would have been gone in four or five years and amortize it over a 25- or 30-year mortgage, the payment drops sharply — but spread over decades, the cumulative interest can quietly exceed what you started with. A lower rate that doesn’t beat the amortization stretch is a loss dressed as a win.
So we model both numbers, in writing: the immediate monthly cashflow relief, and the lifetime interest under different paydown speeds. The fix is rarely to avoid consolidating — it’s to consolidate at the lower rate and keep paying close to your old total. Redirect the freed-up cashflow at the principal and that $50,000 disappears years faster than the cards ever would have, at a fraction of the interest. You get the relief without the trap, because you saw both columns before you signed.
Refinance, second mortgage, or HELOC — which is right for you?
All three consolidate debt, but they win in different situations and choosing wrong can cost you thousands. A full refinance blends everything into one new first mortgage — ideal when your current rate is already high, you’re near renewal, or the break penalty is small. It gives the cleanest single payment and usually the best rate.
A second mortgage sits behind your existing first and leaves it untouched. This wins when your first mortgage carries a great low rate locked in years ago: breaking it could trigger an interest-rate-differential penalty large enough to erase the savings, so a second at a higher rate on a smaller balance is the cheaper math overall. A HELOC suits borrowers who want revolving access and have the discipline to manage a credit line without re-running the balance up.
We price all three against your actual numbers — including any penalty — and recommend the structure that costs you least, not the one that pays the biggest commission.
How much equity do you need, and what if your credit is bruised?
On a refinance, A-lenders go up to 80% of your home’s appraised value on an uninsured basis. On a $700,000 home that allows up to $560,000 in total mortgages; if your existing mortgage is $400,000, you have roughly $160,000 of room to consolidate. A second mortgage or HELOC can stack behind your first to reach a similar combined loan-to-value when a full refinance isn’t ideal.
Lenders treat consolidations as equity-and-income files: A-lenders want reasonable credit and provable income, but they reward the lower utilization that comes from clearing your cards. When credit is genuinely bruised — recent missed payments, collections, or tax debt — B-lenders and private lenders consolidate primarily on equity, accepting weaker scores in exchange for a rate premium. That premium is almost always smaller than the 20%+ you’re bleeding on credit cards, which is exactly why an alternative consolidation can still be the right move while you rebuild.
How do you keep the win after consolidating?
A consolidation is a reset, not a cure — and the single biggest risk is quietly re-running the balances back up. We say this plainly up front because we’ve seen it: clients clear $40,000 of cards, then carry new balances within a year and end up worse off, now with both a larger mortgage and fresh high-interest debt. The behavioral side is half the work.
So we build a mapped plan, not just a loan. Most clients close or freeze the paid-off cards and keep one for genuine emergencies. We set a paydown target that keeps your payment near the old total so the consolidated balance falls fast. And if you started on a B-lender or private mortgage because of credit, we map a concrete exit: a refinance back to A-pricing once 12–24 months of clean payments and improved scores qualify you. With 100+ lenders including B and private, FSRA licence #13737, every lender and broker fee disclosed in writing, and service in 50+ languages, the goal isn’t just to close the file — it’s to make sure the win sticks.
FAQ
Common questions, answered.
Don’t see yours? Ask Maya — instant answer, any time.
How does a debt consolidation mortgage actually work?
We refinance your mortgage (or add a second mortgage/HELOC) for enough to pay off your high-interest debts. At funding, your lawyer pays each creditor directly. You’re left with one mortgage payment at a low rate instead of multiple high-interest payments. The total you owe is similar, but the interest rate — and your monthly outflow — drops dramatically.
How much equity do I need?
For a full refinance, lenders go up to 80% of your home’s value. Example: a $700k home allows up to $560k in total mortgages; if your current mortgage is $400k, you have up to $160k of room to consolidate. If you have less equity or want to preserve a low first-mortgage rate, a second mortgage or HELOC can still work.
Will consolidating hurt my credit score?
Usually the opposite. Paying off maxed-out credit cards sharply lowers your credit utilization — one of the biggest scoring factors — so most clients see their score rise within a few reporting cycles. There’s a small temporary dip from the new mortgage inquiry, but the utilization improvement typically outweighs it quickly.
What about the penalty to break my current mortgage?
We always calculate it first. Fixed-rate mortgages can carry an interest-rate-differential (IRD) penalty that’s sometimes large; variable-rate mortgages are usually three months’ interest. Sometimes a second mortgage that leaves your first untouched beats breaking it. We model both and recommend the cheaper path — never the one that just makes us a bigger commission.
Refinance, second mortgage, or HELOC — which is right for me?
Refinance if your current rate is high or near renewal — you blend everything into one new mortgage. Second mortgage if your first carries a great low rate worth keeping. HELOC if you want revolving access and the discipline to manage it. We walk through all three with your actual numbers.
Can I consolidate if I have bruised credit?
Yes. A-lenders need decent credit, but B-lenders and private lenders consolidate equity-based files even with low scores, recent missed payments, or tax debt. The rate premium is offset by escaping 20%+ credit-card interest — and we map your exit back to A-pricing once the consolidation stabilizes your finances. See our alternative lending and bad-credit pages.
Isn’t it risky to turn unsecured debt into mortgage debt?
It’s a fair concern. You’re securing previously-unsecured debt against your home, and stretching it over a longer amortization can mean more total interest if you only pay the minimum. The win comes from the lower rate plus discipline: we encourage clients to keep paying close to the old total so the balance falls fast. We’ll show you both scenarios so you decide with eyes open.
Will I be tempted to run the cards back up?
It’s the single biggest risk to a consolidation. We talk frankly about it — many clients close or freeze the paid-off cards, keeping one for emergencies. Consolidation works brilliantly when it’s a reset; it backfires when the old balances quietly return. We’d rather have that conversation up front.
How much can I actually save per month?
It varies, but the swing is often large. Replacing, say, $60,000 of debt at a blended 19% (roughly $1,500-1,900/month in payments) with mortgage-rate financing can cut the monthly cost by 40-60%. We’ll run your exact numbers and put the before-and-after in writing — try our debt consolidation calculator for a quick estimate first.
How fast can this close?
A clean A-lender refinance typically funds in 2-4 weeks. A second mortgage or private consolidation can close in 1-2 weeks when speed matters. If creditors are escalating or a payment is about to default, tell us — we prioritize files where the clock is ticking.
