Refinance to Consolidate Debt

ASTRA MORTGAGE

Use Your Home Equity to Simplify Debt

Roll high-interest credit cards and loans into one mortgage payment. Improve monthly cash flow, pay less interest, and rebuild credit.

One Lower Monthly Payment. Less Stress.

Turn multiple high-interest debts into one simple plan. We compare options and explain the fine print in plain language.

Quick Benefits

  • One payment, one plan — roll multiple balances into your mortgage.
  • Lower blended interest — mortgage rates are far lower than credit cards.
  • Better monthly cash flow — free up room in your budget.
  • Credit rebuild — on-time mortgage payments improve your credit over time.
  • More to principal — keep payments steady and pay down faster.

What Is Debt Consolidation?

For homeowners, consolidation means using home equity to pay off high-interest debts and move them into one mortgage payment. This can happen by refinancing your current mortgage or adding a HELOC/second mortgage. The goal: lower rate, single payment, clear timeline.

Debts We Commonly Roll In:

  • Credit cards
  • 2nd mortgage
  • Lines of credit
  • Installment loans
  • Payout CRA/GST tax arrears
  • Payout judgments and collections owing
  • Consumer proposal

Home-Equity Consolidation Can Help If You:

  • Own a home with sufficient equity (up to 80% LTV, program-dependent)
  • Carry high-interest balances and want one clear payment
  • Want to improve monthly cash flow or accelerate payoff

Options

1. Full Refinance (Replace Your Current Mortgage) We pay out your existing mortgage and debts, then set up one new mortgage at today’s rate and term. Pros: Lowest available rates, one payment, clean slate. Consider: Possible prepayment penalty, legal/appraisal costs.

2. HELOC or Second Mortgage (Keep Your First Mortgage) Add a home-equity line or second mortgage to pay off high-interest debts. Pros: Avoid touching your great first-mortgage rate. Consider: Slightly higher rate than prime mortgage — still far lower than credit cards.

How It Works

  1. Check equity & goals: Soft review of your credit, property value, and debts.
  2. Appraisal & approval: We package your file, order an appraisal if needed, and secure lender approval.
  3. Lawyer closes & debts are paid: Your lawyer pays out old balances and registers the new mortgage.

What You Could Save

If approved, moving high-rate balances into your mortgage can cut interest costs and shrink your monthly outflow.
  • New single mortgage payment vs. today’s total payments
  • Estimated interest savings
  • A clear timeline to debt-free, with optional prepayment paths

Note: Extending amortization can increase total interest over the long run. We’ll show both cash-flow relief and fast-track options so you can choose.

Frequently Asked Questions

A prequalification check won’t. Lender approvals use a standard inquiry that may cause a small, temporary dip.
Ontime mortgage payments can help your score over time.

It depends on the rate and term. Lowering your rate saves interest; extending amortization can increase lifetime interest. We’ll show both cashflow and fasttrack scenarios so you can pick.

We calculate any prepayment penalty and compare options (blend and extend if available, switch, or add a
second/HELOC) to see what nets you the best outcome.

Fair to good credit helps. Strong equity and income can offset some weaknesses. We’ll map a plan to qualify.

Typical refinances close in 1–3 weeks after full documents. Timelines vary by appraisal and legal bookings.

Many mortgages allow lumpsum prepayments or increased payments.

We disclose all fees up front (appraisal, legal, discharge, possible broker/lender fees). Many clients roll costs into the
new mortgage.

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