Debt Consolidation Mortgages in Toronto
One payment. Lower interest. Cash flow back.
Carrying $40K–$100K in credit cards, lines of credit, and consumer loans at 19–29% interest is a cash flow problem with a mortgage solution. Toronto owners with equity can consolidate that debt into the mortgage at a fraction of the rate — but the structure matters.
Who this is best for
- Owners with $25K+ in high-interest debt
- Households where minimum payments are unsustainable
- Self-employed owners using personal credit for the business
- Couples consolidating after a life change
How a Toronto mortgage broker helps
- Models monthly cash flow before and after consolidation
- Compares refinance vs. HELOC vs. second mortgage
- Calculates break-cost on the current mortgage
- Builds a plan so the consumer debt doesn't come back
What lenders typically look at
- Maximum 80% LTV on refinance
- Stress-test re-qualification
- Property appraisal usually required
- Income and credit reviewed
Documents you'll likely need
- Current mortgage statement
- Statements for each debt being consolidated
- Income proof
- Property tax bill
- Photo ID
A Toronto example
Two-income household, $70K consumer debt
A couple with a $520,000 mortgage on an $1.05M home and $70,000 in consumer debt is reviewed for a refinance to 80% LTV, modelling the monthly cash-flow swing and a paydown plan.
Frequently asked questions
+Will my mortgage payment go up?
Yes — you're adding to the principal. The point is total monthly outflow drops significantly because consumer payments disappear.
+Will this hurt my credit?
Short term, one inquiry and account changes. Medium term, scores usually improve as revolving utilization drops.
+Do I have to break my mortgage?
Not always. A HELOC or second mortgage can consolidate debt without touching the first. A broker compares all three.
+What if I don't have 20% equity?
Refinance is capped at 80% LTV. Alternatives include a second mortgage or a structured payoff plan.
Related
This website does not guarantee any mortgage rate, approval, or product. We do not provide mortgage advice on this website. All mortgage transactions are handled by the licensed brokerage identified on this site, in accordance with FSRA requirements.