The Challenge
A homeowner in Stoney Creek came to us paying their mortgage in full every month, but never actually getting ahead financially.
The reason was familiar. They were carrying a mortgage at a rate that had been reasonable when it was signed years earlier, alongside a mix of high-interest debts that had accumulated over time. Credit cards. A line of credit. A car loan. Each individual payment was manageable, but the combined interest was consuming cash flow every single month.
They had thought about consolidating for years but had never taken the step. Their bank had not proactively offered it. They assumed the process would be complicated or that they would not qualify. They kept making payments, hoping that at some point the situation would resolve on its own.
It was not resolved. It was slowly getting worse.
The Mortgage Strategy
The math on refinance-based debt consolidation is straightforward when the numbers are laid out clearly.
If the interest rate on the new mortgage is meaningfully lower than the rates on the debts being consolidated, and the home has enough equity to absorb the additional borrowing, the monthly savings can be substantial. In this client’s case, both conditions held. Their credit card rates were between 19 and 21 percent. Their line of credit was above 9 percent. A refinanced mortgage rate would be a fraction of either.
We structured the refinance to secure a lower mortgage rate, roll the qualifying high-interest debts into the new mortgage, and set the amortization to keep the new monthly payment lower than the combined total the client had been paying before.
The Outcome
New mortgage: $525,000, Stoney Creek primary residence
Structure: Refinance with debt consolidation
Rate: Lowered from previous mortgage rate
Debts consolidated: Credit cards, line of credit, and other high-interest debts folded into the new mortgage
Result: One payment. Lower than the combined total the client was paying before. Clear path forward.
Client Feedback
Here is how one refinance client described their experience with us in a verified Google review:
“Deepika and her team, specifically Heshan, were an absolute pleasure to work with through our mortgage process. Heshan was able to secure a rate that Manulife could not match, saving us over $6,500 during the first 5-year term of our mortgage. Highly recommend.” – Kyle and Crystal, Verified Google Review
If You Are in a Similar Situation
Carrying a mortgage and several higher-interest debts can place unnecessary pressure on your monthly cash flow. Let us review your mortgage, available equity and current payments to determine whether refinancing could provide a more manageable structure.