Ontario Mortgage Guide
Can I consolidate debt into my mortgage?
Combining debt into a mortgage may simplify payments for some homeowners, but it changes how the debt is secured and repaid. Compare the full cost and risks before making a decision.
Talk through your optionsThe short answer
What should I know?
In some situations, a homeowner may refinance and use available equity to pay certain debts. Approval depends on the lender’s assessment, your finances, the property, and applicable limits. Because the new mortgage is secured against your home, missed payments can put the home at risk.
Mortgage availability, rates, qualification, and lender requirements depend on your application and may change. This guide is general information, not a mortgage approval or financial, legal, or tax advice.
Before you decide
What should I consider?
01
Total interest over time
A mortgage may have a longer repayment period than the debts being consolidated. A smaller monthly payment can still result in more interest overall.
02
Fees and penalties
Refinancing may include mortgage penalties, legal fees, appraisal costs, or other charges. Include these when comparing options.
03
Your home secures the borrowing
Moving unsecured balances into a mortgage changes the consequences of non-payment because the debt is secured against the property.
04
A plan for future borrowing
Consider how you will manage spending and repayments going forward so that cleared balances do not build up again.
A clear process
How can I get started?
- 01
List balances and interest rates
Gather current statements, minimum payments, and any fees that apply to the debts you are considering.
- 02
Estimate refinance costs
Request payout information for your mortgage and account for all costs of changing it.
- 03
Compare the complete picture
Review monthly cash flow alongside the long-term interest, repayment period, and security risks.
Common questions
What else should I know?
Does debt consolidation erase what I owe?
No. It changes how the debt is repaid; the balances are not forgiven. Check the new borrowing amount, repayment schedule, and full cost.
Will consolidation always save me money?
No. The outcome depends on rates, fees, mortgage penalties, and how long the debt is repaid. Compare total interest and costs rather than the monthly payment alone.
Could I lose my home if I cannot make payments?
A mortgage is secured against your home. If payments are missed and the issue is not resolved, the lender may have remedies under the mortgage and applicable law.
Personal guidance
Want to talk through your situation?
Steve Beecroft, Mortgage Agent Level 2, can help you understand the questions to ask and the options to explore. A conversation does not guarantee approval or a particular rate.
Contact Steve