Would you benefit from consolidating your debts through a home equity loan or a cash-out refinance of your mortgage? It takes all of your current monthly debt payments and compares them to what you'd pay if you rolled them into a mortgage consolidation loan.
In addition to showing your monthly payment savings, this calculator can also show you how much faster you'd pay off your debts with a mortgage consolidation loan, as well as your total savings over time.
Use this debt consolidation calculator to determine how quickly you could get out of debt and how much interest you might save.
If you are like many people who find themselves with too much debt, you may need to consider refinancing or consolidating your loans.
Of the 10% of Canadians who refinanced their mortgages last year, 62% cited debt consolidation or repayment as the main reason for their refinance.
This is because consolidating high interest debt – like credit card balances and auto loans – into a low interest mortgage can save you thousands in interest payments.
Consolidation loans can significantly reduce your required monthly payment because they are generally amortized over 10 or 15 years.You get the convenience of rolling all your debts into a single monthly payment, which is often lower than what you were paying before, due to a lower interest rate, a longer repayment period or a combination of both.A mortgage-based debt consolidation loan can be a good option for a number a reasons.In order to determine if you can consolidate debt into your mortgage, you start by determining how much available equity you have.In Canada, this is determined by taking 80% of your home’s value and subtracting any existing mortgage balance.Based on the details you’ve entered, it appears that you’ll be debt free sooner with your current payment plan.