Debt Consolidation Mortgage
Apply For Debt Consolidation Mortgage
What is a Debt Consolidation Mortgage?
Debt consolidation mortgage is a type of financing that consolidates two or more loans into one. It is a type of mortgage that is long-term, giving individuals the opportunity to pay off various debts simultaneously. Once you have cleared your debt, it just leaves you with paying one loan instead of several. Debt consolidation is helpful for loans that have a high-interest rate like credit cards etc. In this scenario, the lender settles all the outstanding debts by paying the credit at one shot. It is an excellent way to streamline your finances.
If you are looking to consolidate your debt, get in touch with the team at Harpreet Puri Mortgage Agent to find out more information.
How It Works
Why should you choose a debt consolidation mortgage?
Ensuring your finances are in order
Combining multiple outstanding debts into a single loan payment significantly reduces the total number of payments, including the interest rates for you to stress on. Additionally, consolidating your debt ensures you avoid any late fees or missing out entirely on a payment, as well as it improves your credit score. It is also a fantastic option if you have high-interest loans because you will only be paying for the interest rather than the principal. This will ultimately lead you to live a hassle-free life when all your debt is paid off.
Possibility of accelerating your payoff
Suppose your debt consolidation mortgage has a lower interest rate than your individual loans. In that case, you can make additional payments with the money saved, resulting in paying off your debt much faster and saving interest in the long run. Please note: Debit consolidation mortgage leads to loan terms that are extended, so you must ensure you pay your debt at the quickest to take advantage of it. Additionally, debt consolidation mortgages come with structured payment plans, having pay-off dates that are assured. The payment schedules can change from weekly, bi-weekly, semi-monthly, or monthly based on negotiated terms.
Your interest rate may decrease
By consolidating your debts through a mortgage, you may have the chance to lower your overall interest rate if your credit score has improved. Even if the loans you have applied for have a very low-interest rate, you can end up saving money. You must keep in mind that some types of debt have a higher rate of interest. For instance, the interest rate for credit cards is usually higher than that of a student loan. Consolidating multiple debts with a single mortgage can ensure that your interest rate is lower than most outstanding debts. The interest rates on a debt consolidation mortgage vary from you’re a different mortgage that you currently have. If you decide to change your mortgage, you must keep in mind that the terms of your original agreement will most likely change as well.
Significantly reduces your monthly payment
When you consider consolidating your debt, you can rest assured; your monthly payment is likely to reduce.
How to get the best rates for a debt consolidation mortgage
The best way to get a low-interest rate for your debt consolidation mortgage is to have a decent credit score and visit a traditional lender like a bank, credit union etc. Credit unions and private lenders, unlike banks, offer better interest rates because they are more flexible with their terms and conditions, including being competitive. You must be wary of being scammed as well if you decide to shop around for low-interest debt consolidation mortgages on the internet. Harpreet Puri Mortgage will not require you to make an upfront payment or guarantee your loan approval. Below-mentioned is the types of debt that you can consolidate in a single mortgage:
- Credit cards
- Medical bills
- Student loans
- Personal loans
- Payday loans
- Car loans
How to get approved for a debt consolidation mortgage with bad credit?
If you are looking to apply for a debt consolidation mortgage with a poor credit score, you must keep the below-mentioned points in mind when applying:
Before applying, you must take a look at your current credit score. Knowing your credit score will give you a much better idea of what loans you qualify and don’t qualify for. It also gives you the opportunity to improve your credit score by identifying the factors affecting your score.
Once you know your credit score, please do your due diligence and compare them with several lenders. Getting estimates for different lenders gives you an idea of what options are available.
A co-signer is an individual who will share the responsibility for the loan as well. You can ask a family member or a friend you trust to help you to co-sign your mortgage.
If your credit isn’t the best, you will need to expand your search to find the best debt consolidation mortgage terms. The best options are usually private lenders like CanadianLIC Mortgage and credit unions, as they are more flexible with the loan needs.
Advantages of using a mortgage Agent for debt consolidation mortgage:
- You have access to a wide range of loan products from multiple lenders because of their experience and network.
- They can help identify whether you have enough equity available in your home to use to consolidate your debt.
- They can help you find the most advantageous deal as a mortgage represent your interests rather than the interests of the lending institution.
- It is flexible; they have the expertise to guide clients through any situation and offer the best mortgage products to meet their specific requirements.
- Saves you time and money.
- Provides the client with personalized services.
Call us today at 416 543 9000 to schedule a consultation. We are based in Brampton and offer our services throughout the country.