Debt consolidation mortgage —
use your home equity
to pay off debt.

We refinance your mortgage (or add a second mortgage or 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.

For a full prime (A-lender) 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. To preserve a low first-mortgage rate, a second mortgage or HELOC can work within that same 80% combined limit (a HELOC's revolving portion is capped at 65%). Going above 80% is only possible with a B-lender or private second mortgage, at higher rates plus lender and broker fees.

Usually the opposite. Paying off maxed-out credit cards sharply lowers your credit utilization — one of the biggest scoring factors. In our experience, many clients see their score improve within a few reporting cycles as utilization drops; results vary. There's a small temporary dip from the new mortgage inquiry, but the utilization improvement typically outweighs it quickly.

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 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.

Often, if you have enough equity. A-lenders need decent credit, but B-lenders and private lenders can 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.

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.

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.

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 bring that payment down to roughly $350 a month at an illustrative 5.04% over 25 years, although a longer amortization can mean more total interest. We'll run your exact numbers and put the before-and-after in writing — try our debt consolidation calculator for a quick estimate first.

A clean A-lender refinance typically funds 3–5 weeks from approval; private seconds can be 1–2 weeks. If creditors are escalating or a payment is about to default, tell us — we prioritize files where the clock is ticking.