It’s that time of year again: the time when the holiday bills start pouring in. It’s a time when many of us examine our budgets and our financial plans for the year ahead. It’s also a time when some people start to worry about reaching their financial goals.

Unfortunately, debt-to-income ratio shows that Canadians owe $1.67 for every $1 of household disposable income, with total mortgage debt reaching over $1.3 trillion in the first quarter of 2017.

Credit card bills, loans, insurance, taxes, and mortgage payments are regularly occurring, and staying on top of all these payments can be complicated. Making sure you are paying all your bills is an ongoing chore, and it can be a struggle to avoid fees, surcharges, and compounding interest.

Every lender has different terms, amortization periods, and interest charges — and high interest rates and penalties can really add up. The good news is that there are solutions available to help you manage your debt — and we can help.

Know your options

Debt consolidation can help you pay off your bills and reduce your overall monthly payments, and learning about your options is the first step.

There are wide variety of debt consolidation products on the market, but a frequently overlooked option is to re-examine your mortgage.

For most people, your home is your largest source of equity. However, most homeowners don’t access the equity in their homes to help with their debt.

Options can include:

  • A debt consolidation mortgage
    • This refinancing of your existing mortgage can allow you to borrow additional funds on your mortgage.
    • This would typically include the creation of a structured, single debt consolidation payment plan with a defined repayment end date.
  • A second mortgage
    • This financing would come from your existing home equity — this is the money that has accumulated from your previous mortgage payments.
    • This would allow you to pay interest only on those parts of the loan that you use, and not the entire amount of your available home equity.

Debt consolidation questions

At Champion Mortgage, we get lots of questions about debt consolidation. Here are some of the most important questions to ask your broker when considering debt consolidation options and your mortgage:

  • Is there enough equity in my house?
  • How can I access the equity?
  • Do I qualify for a debt consolidation mortgage?
  • What are the costs involved in changing my mortgage?
  • Should I wait until my mortgage comes up for renewal?

Our expert team will help you understand your options. We can help you get where you want to be and achieve what you want to achieve.

How Champion helped: A real life story

We’re proud to say that, over the years, we’ve helped many homeowners find a painless solution to pay down their debt. We’ve helped people get debt-free, we’ve helped people purchase a second home, and we’ve even saved people from foreclosure.

Randy came to us with a laundry list of bills that were past due and concerns about being able to continue to pay his mortgage. We spent time reviewing his assets, his expenses, and his goals. Then we came up with a debt consolidation plan. We helped him access the equity in his home and he was able to pay off his bills and loans — he even had enough equity left to put a downpayment on a second home and converted his original home into a rental income property!

Contact Champion Mortgage today and let us help you get out of debt.