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Debt Consolidation Mortgage

Don’t let high-interest debt from credit cards or loans be a burden on your finances. But if you're a homeowner, you can take advantage of your home's equity to turn unmanageable debt into one affordable mortgage payment.

  • Pay off your debt at your own pace with help from home equity
  • Reduce your payment by up to 50% so your budget is balanced
  • Rebuild your credit by making monthly payments you can afford

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  • Brian Molnar
    Brian Molnar


    Buying a home for your family is so important. Ammar made us feel comfortable with at ease with this process. He took his time to understand our needs but was very quick with the process.

  • Karen Austin
    Karen Austin


    I bought my first home a few years back and used @lowerdotca. It was a great experience so I called them when I was ready to purchase my second house. Ammar and his team go above and beyond.

  • Valerie Fincher
    Valerie Fincher


    We had a great experience with Ammar and his team. He explained us all of our options without us feeling the pressure or rushed. I highly recommend.

  • Jeff Mahlum
    Jeff Mahlum


    I was extremely nervous being a first time home buyer in Toronto. With prices skyrocketing I wasn't sure this was the right move but after speaking to Ammar, he made me feel confident.

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    Clementine Mason


    Ammar went above and beyond our expectations, answering all of our questions and securing us an even better rate that we'd hoped for! The entire process was very smooth and we will be recommending his mortgage services.

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    Averi Blackwell


    I was working with a broker before and it was a nightmare. Thank goodness I found Ammar. He was always quick to respond to help us. We will definitely be using Ammar when it’s time to renew our home.

  • Melissa Dodds
    Melissa Dodds


    I was anxious being a first-time home buyer in the Toronto market. Ammar was referred to me by a friend of the family and he definitely made the process much easier to work through!

  • John Hartman
    John Hartman


    We really appreciated Damien’s patience and compassion through this entire process. We are very happy with our rate and how easy he made our experience.

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    Ruben Gonzalez


    Ammar was amazing to work with from start to finish. Found us such an excellent rate. He went above and beyond for us.

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    Nicola Weber


    @lowerdotca helped me with my purchase of my third business property. He found us the best rates. I would recommend Shawn if you need to speak to anyone.

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    Brooke Cheng


    My family member recommend @lowerdotca and to speak to Ammar. He doesn't disappoint. I was very satisfied with his service.

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    Fredy Pollich


    My previous mortgage broker retired so I had to find a new one. When I contacted Lower. The whole team is amazing. I was impressed right off the bat. Very professional.

  • Tricia Seward
    Tricia Seward


    @lowerdotca was recommended to me by a fellow business owner who used their services to refinance their property. I found Ammar to be knowledgeable and efficient in helping us to reduce our rate and liquidate the capital we needed to expand our business.

  • Judson Flatley
    Judson Flatley


    So glad I found Damien and Lower. The last time I had to renew my mortgage was a headache. Damine is familar with the challenges of applying as a self-employed individual and got our re-financing done without any trouble.

  • Josephine R
    Josephine R


    Lower gave us confidence in our purchase. I won’t even hesitate calling because they are just that great! Very easy to understand and work with.

  • Albert Taylor
    Albert Taylor


    I've worked with Lower many times. I highly recommend them to my clients who are in need. They work hard to get the best rates.

  • William Westley
    William Westley


    I was referred to Damien because I wanted to purchase the building my business is in when my landlord decided to sell. We went over all of my options and I ended up not only managing to purchase the building but also get extra funds to

  • Javier Garcia
    Javier Garcia


    Very reliable team. They are straight forward which I liked. They are honest but they also work very hard to find the best rates for you.

  • Michele Peers
    Michele Peers


    I had the pleasure of speaking to Shawn about a few things. Including purchasing property for my business and we got approved very quick. I will be using his services for my business in the future.

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    Donal Lynch


    I used @lowerdotca to help with the purchase of my second investment property. Damien made the process quick and straightforward, which I appreciated as I have a hectic schedule.

FAQs about Debt Consolidation Mortgages

Have a different question? Contact us today.

Can you Consolidate Debt into a First-Time Mortgage?

Yes. You can consolidate debt into your mortgage if you’re a first-time owner. A mortgage debt consolidation loan allows you to liquidate the high-interest-rate debt.

Can Getting a Mortgage be Affected by a Debt Consolidation Loan?

Yes. If you are getting a second mortgage and have not paid off the first one, it might be challenging to get another one.

Can Credit Card Debt be Consolidated into a Mortgage?

Yes. There are various kinds of debt that you can consolidate into your mortgage, including credit card debt and auto loans.

How Can You Refinance Mortgage to Consolidate Debt?

Refinancing a mortgage to consolidate debt is only possible if your property has equity. It is even better if the equity is high because high equity will help you liquidate faster.

Should I Consolidate Debt into a Mortgage?

If you have incurred much debt, you should consolidate debt into your mortgage if your property has high equity. By so doing, you can pay off debts with high-interest rates.

A debt consolidation mortgage loan is a helpful product that merges all your debt into a secured loan. And debt consolidation alone is a system that assists people who can’t make their monthly payments on time. When you consolidate debt into a mortgage, you combine all your debt into a low-cost mortgage loan.

A debt consolidation mortgage is a long-term loan sourced from the value of your property. The loan is used to pay off your many consumer debts and liabilities. That way, you will have only one debt left to pay. Consolidating your debt is asking your lender for a loan that is either above or precisely the amount you owe.

Debt consolidation mortgage in Canada is dependent on the value of your property. It’s also contingent upon the debt you want to consolidate into your mortgage and your property’s equity.

debt consolidation mortgage - source mortgages

How Debt Consolidation Works

Debt consolidation helps you merge all high-interest debts, like non-mortgage balances and payday loans, into a single low-cost loan. Doing this shifts your debts with high interest into a low-interest loan. It allows you to refinance mortgages to consolidate debt by lowering the interest rates on your debt.

Having home equity is what qualifies you for a debt consolidation loan. Equity remains when the outstanding mortgage balance is subtracted from a house’s value. Basically, if your property costs $250,000 and you owe $50,000 on your mortgage, then your home equity is $200,000.

As the house’s value increases, so does your home equity, allowing you to pay your mortgage off. Debt consolidation refinances mortgage and rolls your debts with high interest into a new, separate mortgage with reduced interest rates.

Ideally, debt consolidation mortgage refinance has an 80 percent limit – you cannot refinance more than 80% of your mortgage. From our scenario, when you multiply $250,000 by 80%, you get $200,000. Subtracting what you owe on your mortgage ($200,000 – $50,000) leaves $150,000 to liquidate (pay off) your high-interest debts.

However, with a debt consolidation refinance mortgage, you have to pay a few fees, such as administrative fees. Still, it lets you save money, among other benefits. The money you save could otherwise have been used to liquidate high-interest debts.

Factors to Consider in Debt Consolidation Mortgages

Some factors to consider when you want to refinance a mortgage to consolidate debt include:

  • Qualifying for a new mortgage
  • New interest rates
  • Administrative fees

Qualifying for New Mortgage

Receiving mortgages isn’t easy lately because of regulations such as stress tests and debt service ratios. Note that considering debt consolidation mortgage is only possible when you are approved for a new mortgage.

New Interest Rates

Debt consolidation mortgage means getting a new mortgage and new interest rates. The accompanying interest rate will be high if the new mortgage is high.

Administrative Fees

You will incur one-time fees while changing mortgages are called administrative fees. It includes the cost of breaking your mortgage, among other legal fees.

Types of Debt Consolidation Mortgages

Debt consolidation refinance mortgages can be classified into three which are:

  • First mortgage refinancing
  • Second mortgage
  • Reverse mortgage

First Mortgage Refinancing

The primary mortgage on your home is your first mortgage. You can liquidate using a first mortgage in two ways. One is increasing the first mortgage amount when buying a new property. The benefit is you won’t have to pay further fees for breaking the existing mortgage.

Another method is through debt consolidation mortgage refinance on an existing mortgage – borrowing money to liquidate an existing mortgage. Although, you have to pay extra fees using this method.

Second Mortgage

This is a separate mortgage from your primary mortgage on your property. Compared to other mortgages, the interest rate of a second mortgage is higher.

Reverse Mortgage

This is available for people who are 55 years or older. The mortgage balance increases monthly, so making payments isn’t necessary. However, it decreases your equity.


A Home Equity Line of Credit (HELOC) is a line of credit endorsed by your house. It lets you access 80% of the value of your property. If you have an outstanding mortgage balance, it will be deducted from the 80 percent.

mortgage debt consolidation - source mortgages

Consolidating Debt into First-Time Mortgage

Debt consolidation mortgage isn’t only for current homeowners. First-time homeowners are allowed to benefit from it. However, if you are a first-time buyer, you must have a loan-to-value (LTV) ratio under a specific amount. LTV represents the size of your loan compared to your property’s value. You can get advice on home equity loans when you need them.

Downsides of Debt Consolidation Mortgages

A reduced interest rate is one benefit when consolidating debt into a mortgage. However, it has negative aspects, such as:

  • Long-lasting debt
  • Run out of equity
  • Incurring more debt

Long-Lasting Debt

Debt consolidation mortgage helps you roll your other debt into your mortgage. While this enables you to reduce your debt, it makes you a debtor for an extended period.

Run Out of Equity

Debt consolidation mortgage refinance lets you save money from your equity. Although this is beneficial, it might make you complacent about paying your debt. Certain people even go as far as to see their property as a resource. Their house becomes somewhat of an ATM to them.

However, equity is not a resource of endless supply – it will run out eventually. And when it does, you may have nothing left when you really need it, for instance, during medical emergencies.

Incurring More Debt

Some people continue using their credit cards after getting a debt consolidation mortgage. As a result, they have more debt to pay and return to being prey to lenders of credit cards. Overmuch credit card debt sinks your loan.

You may qualify for a debt consolidation mortgage if you liquidate your credit cards and close your accounts. However, doing so will lower your credit score.

Where to Get Debt Consolidation in Canada

The places to get debt consolidation mortgage in Canada include:


Lower is your best option if you seek the best advice and assistance with debt consolidation. They educate you on their products and services and offer debt consolidation mortgages for any situation.

Debt Consolidation Mortgage Conclusion

Debt consolidation mortgage gives you relief from your debt by allowing you to make payments once a month. It is worth considering because paying off debts can be unpredictable and consistent. It allows you to save money from your interest.