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Consolidate Your Debt - Get The Equity You Need

How It Works

The debt consolidation program is designed for homeowners who have built equity in their homes over the years. If you are a homeowner, we can help you transform your home’s equity into an effective debt-reducing solution.

By using the equity in your home, we will be able to refinance your mortgage and consolidate your debts. Through the years, you have built equity in your home; we can help you unlock the equity to consolidate your debts into one small monthly payment.

You have worked hard for your home, now let your home work for you.

Let’s go through an example situation to help you clearly understand how the refinance debt consolidation program actual works. Please consider the following chart. This chart shows the financial situation of a hypothetical couple. Let’s call this couple Mr. and Mrs. Smith.

Now, Mr. and Mrs. Smith own their home and they have a 5 year fixed mortgage with their current bank. They are currently in their third year of the mortgage. They have a current mortgage balance of $170 000 and their monthly mortgage payment is $1 013. They also have a car loan that they have financed. Currently, their car loan balance is $15 000. Their monthly car payment is $450. They have also accumulated some credit card and line of credit debts, totalling a balance of $20 000. Their minimum monthly payment, which is 3% of the balance, is $600.

Now, because they are only in their 3rd year of their mortgage, there will be a small penalty for breaking the current mortgage contract. This penalty will vary in every situation. One of the great benefits of the debt consolidation program is that your penalty and all of your closing costs are included and absorbed into your new approval. We make it easier for our clients so that nothing is coming out of their pockets and so they are not paying for any upfront fees. Everything will be included in your new debt consolidation loan.

From the chart, we can see that they have a total debt load of $208 000. That includes their mortgage,their car loan, their credit debt, and their mortgage penalty. In total, their monthly bill payments amount to $2,063.

Through debt consolidation, we have helped Mr. and Mrs. Smith pay off all of their high interest debts. We consolidated all of their previous debts into a new mortgage. As a result, all of their debts have been paid off to a ZERO balance. By refinancing their mortgage, we were able to help them pay off their debts. In addition, we were able to lower their monthly payments. As the chart indicates, they now have a new mortgage for $208 000 at an interest rate of 4.30%. By consolidating all of their debts into ONE mortgage, their monthly payments have been substantially reduced to $1 128. This means that we were able to save Mr. and Mrs. Smith $935 every month, which totals to $11 220 a year. Numbers don’t lie. You can see the huge savings right before your eyes.

To summarize, Mr. and Mrs. Smith have benefited from the refinance debt consolidation program in 4 ways:

1. They have eliminated their high interest debts. We paid off all of their debts, which include their car loan, their credit card and their line of credit. They now own their car free and clear, and they have a ZERO balance for their credit card and line of credit debts.
2. They have increased their monthly cash flow. They now save $935 every month, which totals to $11 220 a year. This means that they have more room, financially, every month.
3. They are paying a lower interest rate, compared to credit card rates, which are usually 20-21%, line of credit rates, which are usually 11-12%, and car loans rates at about 7%. Compared to these high interest rates, they now pay a lower mortgage rate of 4.30%. Now, they save a substantial amount of money in interest costs.
4. They have only ONE monthly payment, instead of worrying about 3, 4 or 5 different bill payments every month. Now, they can enjoy the benefits of having ONE LOW mortgage payment.

From this demonstration, we hope that you’ve learned about the many benefits that our debt consolidation program can offer you. We have helped many Canadians realize their dream of financial freedom. Now, it’s your turn!

Please contact us for your FREE, no obligation debt analysis. You can reach us at 416-628-3803 and one of our consultants will be happy to assist you. You could also fill out our online debt analysis form.

We will review your current financial situation to determine the best way you can start saving your hard earned money. Now it’s time to take charge or your finances, your future and your life! Contact us today!