Do you have any large, unmanageable debts?

Mortgage refinancing is your solution

When trying to reduce debt, you must carefully analyze your financial situation and determine if repaying a loan within a reasonable period is manageable without the debt load being too overwhelming. Taking out a debt consolidation loan may not be the solution if the payments are too high or if your cash flow stream is irregular. Refinancing your mortgage might prove a better option. Your home has most likely increased in value and this equity would help to secure a lower interest rate, thereby helping you to pay off debts.

  • If your single or 1 to 4 unit property is owner occupied, up to 80% of the value can be borrowed.
  • For multi-unit buildings of more than 5 units, 80% of the net value can be borrowed.
  • After you deduct the mortgage balance from that amount, the excess can be used to pay off debts, most likely while profiting from lower interest rates too.

Debt consolidation has several advantages. It reduces the amount of your monthly payments by combining them into one monthly payment. You can take out one loan to pay off either part of or your entire debt load, whether from credit cards, line of credit or other personal debts. This can be a practical option so long as repayment corresponds to your financial stream at the same time as allowing you to maintain your lifestyle.

Most often, a debt consolidation loan results in a lower monthly interest rate than the previous debt load. By comparing your mortgage rate to interest rates paid on credit cards, line of credit, car loan or other personal loans, a big difference can translate into savings just by consolidating your debts.

Reconcile your debts and save

Refinancing your mortgage can help to improve your money management. By doing this, your loans will be paid off by our lenders while your payments will be simplified to a single affordable monthly one! One loan means only one payment! Terry Kilakos and his team of brokers can help reduce your financial burden as well as your interest costs, translating this into savings.

Several options offered by our lenders will allow you to repay your mortgage quicker while decreasing the interest paid. You could choose to either make advance lump-sum payments applied directly against your capital or accelerate your payments (weekly or bi-weekly).

Feel free to contact us to explore different options to better manage your money.