Debt consolidation
Debt consolidation mortgages in Ontario
If you own your home in Ontario, consolidating credit cards, loans and lines of credit into your mortgage can cut your monthly payments. We show what it saves now and what it costs over time.
A debt consolidation mortgage is a refinance in which higher-interest debts are paid off from your home equity. With a bank, credit union or monoline lender your total mortgage can usually be up to 80% of your home's value. A debt consolidation mortgage can lower monthly payments substantially, but a long amortization can increase the total interest paid.
When consolidating debt into your mortgage can help
In each of these situations we show you two numbers: the monthly saving and the extra interest over time.
You're carrying high-interest balances
Credit cards and unsecured loans usually charge far more interest than a mortgage. Moving those balances into your mortgage can free up cash each month.
You're juggling several payments
If you make several debt payments on different dates, consolidating replaces them with one mortgage payment. One payment date is easier to manage and harder to miss.
Your mortgage renewal is coming up
Consolidating at renewal can avoid a prepayment penalty on your current mortgage. We compare consolidating now with waiting for your renewal date.
The kinds of lender we try, in order
We start with the first kind of lender for every client, and move down the ladder only when the kind above can't help yet.
Banks, credit unions, trust companies and monoline lenders
A bank, credit union, trust company or monoline lender usually costs you least. We start here for every client, and compare more than one lender's offer.
How we compare lenders →Alternative ("B") lenders
We look at alternative lenders when your income, credit or property doesn't fit a bank's rules today. Alternative lenders charge higher rates and fees, often for a shorter term, so we plan your move back to a bank.
When an alternative lender fits →Private money, as a short bridge
We look at a private bridge only when no bank or alternative lender can help yet and there's a clear exit. We refer private requests to Stonefield Capital, our private-lending brand.
When private makes sense →
How debt consolidation into your mortgage works, from your list of debts to closing
List what you owe
You list the balance, rate and monthly payment for each debt.
See both numbers
We compare the monthly saving with the extra interest over time, and look at ways to pay the debt off faster.
Approval
The lender appraises the home and checks that you qualify for the new payment.
Your lawyer pays the debts
At closing, your lawyer pays the listed creditors directly from the new mortgage.
What documents and details do I need to have ready?
You need no documents for the first call. Once we know which documents your lender needs, you share them through a secure application and never by e-mail.
- Latest mortgage statement and property tax bill
- Recent statements for each debt to be paid off
- Income documents
Questions about debt consolidation mortgages
How much can I consolidate?
Your total mortgage can usually be up to 80% of your home's appraised value with a federally regulated lender. The amount available for debts is that limit minus your current balance and any penalty.
Will this hurt my credit?
Paying off revolving balances often helps your credit utilization. Running the cards back up afterwards is the main risk, and we talk about that risk openly.
What if my credit is bruised?
Banks and monoline lenders look closely at credit history. If a bank or monoline lender declines, there are other lenders, sometimes at a higher cost. We explain any such option, including its costs, before you decide.
Rules described on this page were checked on 2026-10-23. Every mortgage is subject to lender approval. This page is general information, not financial advice.
More questions about debt consolidation mortgages
No cost to talk
Ask a mortgage broker to call you back
Tell us what you're planning for a home in Ontario and a good number to reach you. We call back within one business day, usually sooner. We ask for documents only once we know which ones your mortgage needs.
You can also call us at (416) 371-2077.