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Large(unmanageable) debt? Mortgage refinancing is the solution

Before opting for debt consolidation, you should analyze your financial situation with extreme care and determine whether or not you will be able to repay your loan within a reasonable period of time. If the payments are too high or if you have an irregular cash flow stream and find the debt load too overwhelming, it may be comforting to know that the value of your property has most probably increased since you purchased it. This value increase can give you access to mortgage refinancing and help you pay off your debts. Refinancing allows you to use your home equity to secure a lower interest rate.

• You can borrow up to 90% of the value or your single or 1 to 4 unit property if it is owner occupied.
• You can borrow up to 85% of the net value for multi-unit buildings of more than 5 units.
• You must then deduct your mortgage balance form that amount. The excess can be used to pay off certain of your debts while taking advantage of lower rates*.

Debt consolidation has the advantage of reducing your monthly payments. It is a viable option as long as it respects your ability to repay and allows you to maintan your lifestyle. Debt consolidation consists of taking out one loan to pay off all or part of other loans like credit cards, line of credit or other personal debts. From now on, you would have only one monthly payment to make.

This is often done to secure a lower monthly interest rate. Compare the interest rates you pay on your credit cards, line of credit, car loan or other personal loans to your mortgage rate. Calculate the difference and discover the savings of centralizing your debts.

Here is an example

Settle your debts and save

Refinancing helps you manage your money. Our lenders will pay off your loans and will allow you to make an affordable single monthly payment! One loan, one payment! Multi-Prêts can help you lighten your financial burden and save money on interest costs.

You could, among other things, take advantage of advance payments (one payment directly applied against your capital) or accelerated payments (weekly or bi-weekly) offered by our lenders. Options like these allow you to repay your mortgage quicker while minimizing the interest paid.

To find out about all the different options, please contact one of our broker.

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