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Buying a home before selling your home BC

Debt Consolidation Loan

Improve cash flow, lower your payments with a debt consolidation loan in BC. Apply today!

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You can get pre-approved in as little as 24 hours.

Borrow Up To 75% Of Your Home's Value

Loans ranging from $50,000 to $2,000,000

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What is a Debt Consolidation Loan?

A debt consolidation loan is a financial tool designed to simplify your debt repayment process by combining multiple debts into one loan with a single monthly payment. This type of loan can help you manage your finances more effectively by consolidating various debts, such as credit card debt and payday loans, into one manageable loan. By doing so, you can benefit from a lower interest rate and a single monthly payment, making it easier to stay on top of your debt and work towards financial freedom.

Benefits of Debt Consolidation

Debt consolidation offers several significant benefits, including:

  • Simplified Debt Repayment: With a debt consolidation loan, you only have to make one monthly payment, which can help reduce stress and make it easier to manage your debt.
  • Lower Interest Rates: Debt consolidation loans often come with lower interest rates compared to credit cards and other types of debt, which can save you money on interest payments.
  • Lower Monthly Payments: By consolidating your debt into one loan with a lower interest rate, you may be able to reduce your monthly payments, making it easier to pay off your debt.
  • Improved Credit Score: Making timely payments on a debt consolidation loan can help improve your credit score over time.
  • Reduced Debt Stress: Consolidating your debt into one loan can help alleviate the stress and anxiety associated with managing multiple debts.

Debt Consolidation Loans Using Home Equity

Debt consolidation loans allow home owners with home equity to refinance their home to up to 80% Loan to Value.

Conditions apply. Call for more details.

Looking to consolidate debt into a mortgage? To get approved for a debt consolidation loan in BC we must first consider if you qualify at a bank / credit union or alternative mortgage lender.

Documents required:

For Alternative Debt Consolidation Mortgage Loan:

For Bank & Credit Union

Salaried Job:
Letter of employment which outlines at minimum the following: your job title, time on job, your pay (salaried or guaranteed hours plus hourly rate), signed by Human Resources or your direct boss, dated, and on company letterhead. Make sure the signor of the letter has included their contact information.

  1. Recent pay stub in last 30 days
  2. If commission, bonus, or overtime income is needed for qualification, then please supply your last two years T4s 

Self Employed – Sole Proprietor:

  1. Your last two years T1 General Tax Returns. (or applicable years) We need all pages of the return including the Statement of Business Activities for the same years
  2. Your last two years Canada Revenue Agency Personal Notice of Assessments to confirm income filed with the government and income taxes paid up to date (or applicable years)

Self Employed – Incorporated Business

  1. Most recent 2 years of company financials
  2. Your last two years T1 General Tax Returns.  We need all pages of the return 
  3. Your last two years Canada Revenue Agency Personal Notice of Assessments to confirm income filed with the government and income taxes paid up to date 

A debt consolidation loan through an equity lender can be used to pay all sorts of debts including liens judgments and more. 

Most banks, Credit Unions & Alternative mortgage lenders offer debt consolidation mortgage loans. Using a BC Mortgage Broker allows home owners to obtain sound advice from trusted professionals.

Banks & credit unions have income and credit worthiness (debt service ratios) and other guidelines to follow. They allow refinancing up to 80% ltv (loan to value).

Alternative mortgage lenders also offer debt consolidation loan financing. Home equity is their primary focus, so your credit and income are not an issue. Home Equity lenders offer refinance up to 75% ltv (loan to value) usually in major centers.

A debt consolidation loan can affect your ability to get a mortgage, but the impact depends on various factors. If you use a debt consolidation loan to pay off high-interest debts and improve your credit score, and debt to income ratios it may positively affect your mortgage application. However, taking on multiple debts could temporarily lower your credit score and increase your debt-to-income ratio, which might make it more challenging to qualify for a mortgage in the short term.

Yes, you can consolidate credit card debt into your mortgage through a debt consolidation loan. This allows you to pay off high-interest credit card balances with a lower-interest mortgage loan, potentially reducing your overall interest payments and improving your cash flow.

A debt consolidation loan improves your credit by allowing you to pay off or pay down all your revolving credit. Your credit bureau has many components to the algorithm that populates a credit score. A few of the components work as follows:

  • A balance over 50% of your accounts limit lowers your credit score over a few months
  • A balance at your accounts limit lowers your credit score over a few months
  • Late or missed monthly payments lower your credit score
  • Many open accounts lower your credit score.
  • Files in Collections lower your credit score

By taking care of all these issues your credit score can improve significantly in as little as 3 months.

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