Consolidating debt into a new mortgage
Debt can be very overwhelming to handle, and if you have to pay loans with high-interest rates, you may feel as if you are paying for something that simply won’t end.
That’s why so many people consider consolidating their debt, making it easy to simply pay one lender than having to pay multiple creditors every month.
Indicate you want to include debt in your new home loan at the time of application.
When you fill out the form, note the amount you wish to borrow.
While rates will vary based on credit card and mortgage companies, a credit card can carry rates as high as 20 percent, while a mortgage can be as low as 3 percent.
If your repayment history is uneven, the lender will hesitate to approve your application.
Getting a mortgage while carrying significant other debt can put a serious strain on your finances. By consolidating your debt into your mortgage, you can move forward with the purchase while giving yourself the relief of spreading your other debt over 30 years.
Just know that you still must come up with a down payment and understand that your debt potentially will be with you for much longer.
Many Oakville mortgage specialists will advise you on the options, and work with you to see how much you can save when you consolidate your debt into your mortgage.
There are many reasons why you may want to consolidate your debt, especially if you have a mortgage.