One of the easiest and most effective ways to manage your cash flow, save money and reduce debt more quickly is to consolidate your loans, lines of credit and credit card balances into your mortgage, a secured line of credit or a second mortgage. With a debt consolidation, you could improve your cash flow, save on interest and pay off debt faster. Also, you will have one payment to make instead of several. All this makes things easier to manage and to put a plan in place to eliminate the debt within a specified period.


Lower monthly payments. By consolidating debt, it is possible to obtain a much lower overall interest rate. In addition, the payment terms could be extended to improve your monthly cash flow. However, there will still be a plan in place for you to be able to pay more than the minimum to reduce your debt faster. Credit card interest. Most credit cards have a high interest rate. By consolidating your credit card balances, you could reduce your interest costs and set up a dedicated plan to pay off the debt.  Simplify. Have only one monthly payment to worry about instead of several.

Did an unexpected circumstance leave you with credit card debt? Have you been putting off some necessary home repairs or renovations? If so, there are several ways to consider using your home equity to pay down debt and improve cash flow.


You may have the option of refinancing your existing mortgage for a larger amount. The difference between your existing mortgage balance and the amount your new mortgage may be approved for would be available cash to you for debt consolidation, renovations, etc. Typically, this option allows you to refinance up to 80 percent of your home’s value. For example, if your home is now valued at $400,000, 80 percent of this value is $320,000. If your current first mortgage balance is $250,000, the available new cash would be $70,000. The main benefit to this type of refinancing is interest rate as you are adding to your first mortgage which is more attractive to a lender.


Sometimes, refinancing your first mortgage is not an option for one reason or another. There may not be enough equity, there may be no option to do so with your current lender, there could be credit or income issues, etc. In this case, you may still be able to use your equity to take out a second mortgage.

A second mortgage is an effective option if you require a fixed amount of funds and if it will improve your credit, cash flow, home value, etc.


A home equity line of credit can be considered if you feel you need to re-use the facility and have the wherewithal to pay down the debt. With a HELOC, you can re-use the facility as you wish and you can also pay it down as you wish. As it is based on the equity in your home, a HELOC is secured and therefore the interest rates are usually very attractive compared to an unsecured line of credit.


A second mortgage can be a great way for homeowners to consolidate debt. Second mortgage rates are typically higher than first mortgages, however, these rates are still often lower than high interest credit cards, or will carry much better repayment terms than existing debt and can improve cash flow.

If you own a home and have at least 15% equity, we can assist you with a mortgage or home equity loan. We make many financing options available to homeowners. You never know what could come up and it’s good to know these challenges can be dealt with. We will evaluate all your options and provide you with our best recommendations to suit your needs and requirements.

Have questions, need some help. Let’s get started. Call Domenic at (905) 875-4594 or fill out the form to get started!