If you are an average Canadian, then you probably have a number of debts. In most cases your outstanding debt situation is very inefficient, meaning you are paying mostly interest and very little principal. In order to make your debt situation more efficient you may wish to merge your debt into one loan, also known as a “debt consolidation”. There may be a number of reasons why you would wish to do this. Below here are the most common reasons:

  • Simplify your finances by only having one monthly payment
  • Save money in interest by paying off higher interest debts
  • Increase monthly cash flow


Using the equity in your home to consolidate your debt is what we refer to as “Equity Repositioning”. Generally mortgage interest rates are much lower than other loan interest rates and credit cards, also mortgages can be amortized (paid) over 30 years. This means you can arrange much lower monthly payments, therefore freeing up monthly cash flow, and saving money on interest costs.


There are costs involved to refinance your debt. This could involve paying a mortgage penalty to break your existing mortgage, as well as legal fees, and possibly an appraisal fee. We would need 15 minutes to complete a mortgage equity repositioning analysis. The analysis will confirm if it makes financial sense, and to show you home much of a financial difference this will make. By changing an inefficient situation to an efficient situation could translate to hundreds of dollars in savings every month.