One of the most gratifying mortgage products I offer my clients is the simple debt consolidation. This is classically defined by when an individual takes their high interest debt whether mortgage, credit cards, or other loans and reorganize it into an efficient, low interest, one payment mortgage loan. This is most often found as part of a home equity loan and is secured against the property. My typical client saves between $500-1500 per month by this process while lowering the interest amount paid monthly.
In a typical example of a Simple Debt Consolidation my client comes to me with either an unsustainable amount of debt or the existing debt carries outrageous interest rates (up to 30%) and we assess their situation. Whether I suggest a home equity loan, line of credit, a private mortgage, or a refinance of all debt into a new first mortgage, you will know all of your options as well as the effect it will have on your monthly cashflow before committing to any one course of action.
There is a surprising amount of my Ontario residents who would benefit from simple debt consolidation, especially those who are meeting their minimum monthly payments on their credit cards yet see no way out of the debts they owe these companies. Simple debt consolidation is quick and has an immediate positive effect on your credit making sure the next time you apply for a loan you will receive the best interest rates and terms available.