Debt consolidation & mortgage refinancing can go hand in hand. You can avoid a consumer proposal by refinancing your house and paying out your debts.

Lower interest rates.

Rate-and-term refinancing is the process of renegotiating your mortgage if interest rates have increased since you first obtained it. Lower rates will decrease your monthly payment, leaving you with extra money to put towards the things that matter.

Lower your credit card debt.

Many people make the mistake of carrying credit card debt to fund life expenses. With exorbitant interest rates, this method of borrowing ends up costing the borrower much more per month than if they were to do mortgage refinancing. If you are paying major interest rates on money you’ve borrowed on your cards, debt consolidation and mortgage refinancing become effective financial planning options. You have established equity in your home, and it can be used to help you.

Refinancing other loans into your mortgage can make monthly payments more affordable. A mortgage is typically the lowest rate debt you can get.