Debt Consolidation Mortgage Mississauga
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Debt Consolidation Mortgage Mississauga
Are you struggling to make your monthly mortgage repayments? At Harpreet Puri Mortgage Agent , our experts can offer quality debt consolidation solutions to ensure you take charge of your finances over time.
What is a Debt Consolidation Mortgage?
Debt consolidation mortgage is a type of financing that consolidates multiple high-interest loans into one single easy-to-make payment. It is long-term, allowing people to pay off various debts simultaneously. Once you have cleared your Debt, you are only left with paying one loan instead of many. This is an excellent option if you are riddled with credit card debt. Debt consolidation is a fantastic way to streamline your finances.
If you are looking for debt consolidation in Mississauga, please do not hesitate to contact our team today.
Helping you utilize your credit wisely
Your credit rating is pivotal in ensuring you qualify for a mortgage. A good credit score significantly increases your chances of getting approved. One way to improve your credit rating is to pay your bills on time and take advantage of your payments.
Why consolidate your Debt into a mortgage?
Refinancing your existing loan into a debt consolidation mortgage is a fantastic option if you have high-interest loans and you will only pay the interest rather than the principal. When you refinance, you can take out funds of 80% of the market value of your house minus the remaining mortgage balance.
Interest rates on a debt consolidation mortgage are different from your existing mortgage. If you decide to change the mortgage, the terms of the current mortgage agreement will likely change. Another significant reason for consolidating your Debt into a mortgage is it comes with a structured payment plan and a guaranteed pay-off date.
Before you decide to take out a debt consolidation mortgage, you need to understand the benefits and drawbacks. The team at Harpreet Puri Mortgage Agent can help you make a well-informed decision.
How to Secure the Best Rates for a Debt Consolidation Mortgage?
The best way to secure a low-interest rate for a debt consolidation mortgage is to have a good credit score and visit a traditional lender such as a bank, credit union etc. Private lenders offer better interest rates because they are more flexible with their terms and conditions, as well as competitive. You must be aware of scammers, so it is important to do your due diligence to shop around or consult with our mortgage professionals to make an informed decision. Below mentioned are the types of Debt that you can consolidate into a single loan:
Proof Using a Mortgage Expert for Debt Consolidation Mortgage:
Various Ways to Consolidate Debt using your Mortgage:
One option is to mortgage refinance. This is where you end ties with your current mortgage term early and combine your mortgage, including other debts, into one secured loan of up to 80% of the property’s value. But the borrower needs to own a house with a mortgage. However, if you break your mortgage contract early, you may be subjected to a penalty.
2.Getting a Second Mortgage
A second mortgage is a loan that is secured against your house in addition to your primary mortgage. They are ideally used to combine multiple high-interest debts into a solitary payment at a rate that is easier for the borrower. A second mortgage comes in different forms, including a HELOC. That is why it is imperative to shop around.
3.Home Equity Line of Credit
A HELOC can be used to borrow against the built-up equity in your house. Here the house is used as collateral for that loan. It allows you to access up to 80% of the property value without the borrower’s outstanding balance on your mortgage. The variable rate gives the borrower the freedom to use as much equity as they need without paying a portion of the loan principal every month. The only monthly payment the borrower will need to make will be an interest-only payment based on the funds withdrawn. Adding a home equity line of credit on top of your primary mortgage will not incur any penalties, but legal fees may apply.
4. Securing a Second Mortgage from a Private Lender
Based on the other options mentioned above, the interest rate is high with this option. But it gives the borrower more than 80% of the home’s built-up equity. A private mortgage is a loan that a traditional lender does not issue; instead, it is issued by a private individual or organization. If you struggle to qualify for a mortgage from a conventional lender, you can apply for a second mortgage from a private lender.
Private mortgages are interest-only, so they come with lower payments. Despite this option having an interest rate, you will still benefit from rates when compared to a personal line of credit or a credit card. Additionally, you can save money in the long run, which will help you pay off your debts sooner.
For further enquiries, speak to a member of our team today. Call the team at Harpreet Puri Mortgage Agent today to schedule an initial consultation or for more details. We are based in Mississauga and offer our services across Canada.