The economy in Canada has been challenging the last couple of years and for some, that has meant an increase in consumer debt. High interest credit cards and loans can really become a burden on monthly cash flow. Consolidating debts into a mortgage by accessing home equity can be a solution to bring interest payments down and ensure payments are being made to the principle of the debt. By law, CMHC will allow homeowners to refinance their homes to a maximum of 90% of the home’s value. Interest rates on consumer debt are traditionally issued at a higher interest rate than mortgages because consumer debt is typically unsecured. By transferring debt in to a mortgage, your interest rate will drop significantly.
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