Using Your Mortgage for Debt Consolidation
A Mortgage Refinance, or Equity Takeout gives you the opportunity to pay off your debts such as credit cards, property taxes, CRA taxes, or loans, or other high interest mortgages. Lower your interest rate, and increase your monthly cash flow.
Here are some examples of recent mortgages we have completed...
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Example 1 - CRA Lien with High Interest Credit Cards
Client has $95,000 of tax debt owed to CRA, with a lien registered
Plus $31,000 of high interest credit card debt with a $950 monthly payment
Plus a $120,000 bank mortgage with a monthly payment of $975
We refinanced this client into a new mortgage of $254,000 at 4.19%
Paid off CRA, old mortgage, and debts
New payment of $1360 per month - a savings of $565 per month - CRA lien removed
Example 2 - 2nd Mortgage, Consumer Proposal, and Property Tax Arrears
Client has first mortgage of $130,000 with monthly payment of $916
Second mortgage of $24,000 with a monthly payment of $410
Consumer Proposal of $16,000 with a monthly payment of $330
Property Tax Arrears of $18,000 accruing $392 per month
We refinanced this client into a new first and second mortgage at 6.95% and 14%
Paid off the first mortgage and arrears, second mortgage, consumer proposal and tax arrears
New payments of $975 and $461 per month - a savings of $612 per month - a fresh start
Example 3 - Property Tax Sale, Property Tax Arrears, High Interest Credit Cards
Client has first mortgage of $150,000 with monthly payment of $1050
They have several years left till renewal, and unfortunately have fallen behind on property taxes for several years, as well as some credit cards at 29.9% interest.
We gave this client a second mortgage for $35,000 @ 12.5%
They were able to get their house out of Property Tax Sale with the City of Winnipeg, plus consolidate their credit cards with a payment of only $350 per month
Example 4 - 2nd mortgage, High Interest Credit Cards, and a Personal Loan
Client has a first mortgage of $155,000 with a monthly payment of $1673
Second mortgage of $17,000 with a monthly payment of $350
Plus $12,000 of high interest debt with a $374 monthly payment
Plus a $53,000 personal loan with a monthly payment of $867
We refinanced this client into a new mortgage of $255,000 at 4.79%
Paid off first and second mortgage, car loan, and credit cards
New payment of $1450 per month - a savings of $1815 per month
That's almost $22,000 a year less in payments!
Do any of these situations look like yours?
Whether you have perfect credit, or have serious credit issues, we can help.
Let's Begin by filling out our Mortgage Application or Contact Us Form below
Still want more information? How about reading about.....
Credit Repair Scenarios How 2nd Mortgages Work
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