Office 289-505-0631  ·  Direct 647-291-7116 Rajiv Verma, Mortgage Broker · Mortgage Architects · FSRA Licence #12728
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Debt consolidation in the GTA — one lower payment, more breathing room

Turn several high-interest debts into a single mortgage-rate payment using the equity in your home. Honest advice, real numbers, no pressure.

Quick answer: Debt consolidation replaces multiple high-interest debts (credit cards, lines of credit, loans) with one lower-rate payment secured against your home. Because mortgage rates are a fraction of the ~20% cards charge, more of every payment pays down what you owe — and your monthly cash flow improves right away.

What it is

If you’re juggling several payments a month and most of it disappears into interest, debt consolidation is the reset. We combine those balances into your mortgage — through a refinance or a second mortgage — so you owe one lender, at one much-lower rate, on one date.

Who it’s for

  • Homeowners carrying credit-card or line-of-credit balances at 19.99%–22.99% interest.
  • Anyone whose minimum payments barely move the balance each month.
  • People who’ve been declined by a bank because of credit or income — self-employed owners included.
  • Families who want one predictable payment instead of five stressful ones.

How it works

  • 1. Quick review. We look at your debts, your home’s value, and your goals — free, no obligation.
  • 2. Compare the paths. Refinance vs. second mortgage vs. private — I run the real numbers on each.
  • 3. Approve & fund. Once you pick the option that leaves you clearly ahead, we arrange it and pay out the debts.
  • 4. Fresh start. One payment, lower rate, more monthly cash flow.

What it costs — honestly

Consolidating isn’t free, and I’ll never pretend it is. Depending on the route, expect an appraisal, legal fees, a possible penalty to break your current mortgage, and — for private options — lender and broker fees. The test is simple: if the math doesn’t leave you meaningfully better off, I’ll tell you not to do it.

Typical limit
Up to 80% of your home’s value (refinance)
Rate vs. cards
Single-digit mortgage rate vs. ~20% card rate
Speed
Weeks for a refinance; days for urgent private files
Credit impact
Often improves as card utilization drops

When it’s not the right move

If your equity is thin and the fees outweigh the interest you’d save, or if the underlying spending isn’t addressed, consolidation can just delay the problem. In those cases I’ll say so and suggest a better step. That straight talk is why clients send their friends and family.

AI-enabled FAQ

Debt consolidation — your questions, answered

Real answers to the questions clients actually ask. Search or tap any question.

What is a debt consolidation mortgage and how does it work?
A debt consolidation mortgage rolls your high-interest debts — credit cards, lines of credit, car loans — into your mortgage, secured against your home, so you make one lower monthly payment instead of several. Because a mortgage rate is far lower than credit-card rates, most of your payment goes to principal instead of interest. It’s usually done through a refinance or a second mortgage.
How much debt can I consolidate against my home?
In Canada you can typically borrow up to 80% of your home’s value through a refinance. Subtract your current mortgage balance and the remaining room is what’s available to consolidate. If you have less than 20% equity, a second or private mortgage may still work.
Will consolidating my debt hurt my credit score?
Usually the opposite. Paying off maxed-out cards lowers your credit utilization, which is a major scoring factor, so most clients see their score improve within a few months. There’s a small, temporary dip from the credit check and new account. See credit improvement for more.
Is a debt consolidation mortgage better than a second mortgage?
It depends on your equity, your existing mortgage rate, and any penalty to break it. If breaking your mortgage is costly, a second mortgage that leaves your first mortgage untouched can be cheaper overall. I’ll run both numbers so you can compare — that’s the whole point of using a broker.
What interest rate can I expect?
Far lower than credit cards. Most Canadian cards charge roughly 19.99%–22.99% (Financial Consumer Agency of Canada), while consolidating into a mortgage is typically single digits. The exact rate depends on your equity, credit, and income.
Can I consolidate debt with bad credit or if I’m self-employed?
Yes. Because the loan is secured by your home equity, approvals lean more on the property than on a perfect credit score or T4 income. This is where alternative and private lenders and self-employed programs come in.
What are the costs and penalties involved?
Expect an appraisal, legal fees, and possibly a penalty to break your current mortgage early. Private options add lender and broker fees. These costs are real, and I’ll show them to you up front — if consolidating doesn’t leave you clearly ahead, I’ll tell you.
How much could I actually save each month?
It varies, but rolling several 20%+ debts into a single mortgage-rate payment often frees up hundreds of dollars a month in cash flow. Use our calculators or book a free review and I’ll show your real numbers.
Will I have to close my credit cards?
Not necessarily, but the plan only works if the balances don’t creep back up. I’ll help you set a realistic approach so consolidation is a fresh start, not a reset button.
Is this the same as a debt consolidation loan from a bank?
No. An unsecured bank consolidation loan isn’t backed by your home, so it carries a higher rate and smaller limit. Using your home equity almost always gets a lower rate and lets you consolidate more — though it does put your home up as security, which is why honest advice matters.
What if I have less than 20% equity?
You may still qualify through a second or private mortgage, which sits behind your existing mortgage. It costs a bit more, but it can be the bridge that stabilizes your cash flow until you refinance later on better terms.
How long does the process take?
A straightforward refinance usually funds in a few weeks; private options can move in days when it’s urgent (for example, to stop collections or a power of sale). Start with a quick call and I’ll map the timeline to your situation.

Related services

Refinancing · Private & 2nd mortgages · Self-employed

Ready to see your numbers?

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Go deeper — the answer library

Consolidation works when the arithmetic genuinely improves your position — and fails when the debt rebuilds. These pages cover both sides honestly.

Open the Debt Consolidation Centre →