Debt Consolidation
in North York.

You borrow against the equity in your North York home and use those funds to pay off high-interest consumer debts in full. Instead of juggling multiple payments at steep rates, you make one mortgage payment at a dramatically lower rate. The vehicle varies: a refinance replaces your first mortgage with a larger one, a second mortgage adds a separate loan behind your first, or a HELOC gives revolving access. Each has a different cost structure — we model all three and present a side-by-side comparison in every consultation.

Credit cards charge 19.99%-29.99%. Mortgage rates — even at the B lender level — are a fraction of that. A homeowner carrying $50,000 in combined credit card debt at 22% average pays roughly $900/month in interest alone. Roll that $50,000 into their mortgage and the monthly interest cost drops dramatically. Monthly cash flow savings of $500-$1,200 are common.

Almost any consumer debt qualifies: credit cards, personal lines of credit, vehicle loans, personal loans, CRA tax arrears, student loans in some situations, payday loan balances, collection accounts, and debts from a completed consumer proposal. In North York, where average property values sit around $986,000, many homeowners have significant accessible equity. We assess this by ordering an appraisal and comparing the result against your outstanding mortgage balance.

A full refinance pays out your existing mortgage and replaces it with a new larger first — ideal if your current rate is no longer competitive, but mid-term breaking triggers a prepayment penalty we calculate precisely first. A second mortgage leaves your first untouched and adds a separate loan behind it, preserving your rate while still accessing equity. A HELOC provides revolving credit secured against your equity — ideal for ongoing access but requires discipline to avoid re-accumulation. We calculate total costs for all three and tell you which saves more over your remaining term.

A lenders offer the best consolidation rates for 680+ borrowers with fully documented income. B lenders extend consolidation to 500+ borrowers with a 1% lender fee upfront — which most clients recover within the first year of interest savings. Private lenders approve consolidation based on equity regardless of credit. The goal with private is always to consolidate, stabilize, and transition to B or A at the next term.

When you consolidate unsecured debt into your mortgage, you convert it into secured debt. Your former credit card balances are now backed by your home. This is fine as long as you don’t re-accumulate the consumer debt after it’s paid off. CMS doesn’t just structure the consolidation — our financial counselling sessions help you put a sustainable plan in place so it delivers lasting results.