Debt Consolidation
Refinance Your Mortgage to Consolidate Debt
Carrying credit cards, lines of credit, or vehicle loans at high interest? You may be able to roll that debt into your mortgage, lower your overall rate, and get your monthly cash flow back under control.
I’m Andrew Ladriere from Myplace Mortgages in Cranbrook, and I help homeowners across BC use their home equity to pay off high-interest debt — without selling their home.
Why Refinance to Consolidate Debt?
Most consumer debt in Canada sits at a much higher interest rate than your mortgage. By refinancing, we can take multiple payments and turn them into one lower payment.
Typical debts we roll into a mortgage:
- Credit cards (19%+)
- Personal or bank loans
- Vehicle or recreational loans
- Lines of credit that never seem to go down
The result: one payment, lower interest, easier to manage.
How Mortgage Debt Consolidation Works
We refinance your current mortgage up to 80% of your home’s value and use the extra funds to pay off the outside debts.
For example:
- Home value: $600,000
- 80% of value: $480,000
- Current mortgage: $365,000
- Available to consolidate debt: about $115,000
That amount can wipe out high-interest balances and simplify your monthly budget.
What About My Penalty?
Timing matters. If you’re mid-term, your current lender may charge a penalty to break your mortgage. I’ll get the exact number, compare it to the interest you’re paying on your other debt, and tell you if it still makes sense.
In a lot of cases, even with a penalty, the monthly savings still justify the refinance.
Extra Benefits of Consolidating Through Your Mortgage
Besides lowering your payment, consolidating debt can also:
- Improve your credit utilization
- Make it easier to qualify for a future mortgage or refinance
- Reduce stress from multiple due dates
- Give you clear cash-flow again
If you’re thinking about refinancing to invest later, cleaning up debt first can make that next approval a lot easier.
When This Makes Sense
Debt consolidation through your mortgage is usually a good move if:
- You have $15,000–$100,000+ in high-interest debt
- You plan to stay in the home for a while
- You want to protect your credit score
- You want a simpler, single payment
If it doesn’t make sense right now, I’ll tell you — and we can plan it for your renewal date.
Want me to run your numbers?
Text me your mortgage balance, estimated home value, and the debts you want to pay off — I’ll tell you how much we can consolidate and what your new payment could look like.