with Canada consolidation debt loan mortgage financing, whether
it is BC consolidation debt loan, Alberta consolidation loan, a
Prairies debt home loan, Canada consolidation debt loan Ontario,
Quebec debt home loan, a Maritimes debt loan or Atlantic Canada
mortgage debt loan you should obtain an equity based loan for a
Canada mortgage by using the strength of the equity in your home.
You should be looking for a Canadian equity home loan.
The savings are enormous. You will save hundreds and hundreds of
dollars each month in cashflow savings. You may even save significant
interest savings… but mainly you will be replacing expensive
short term ‘credit card’ minimum due payments compared
to one low monthly mortgage payment with a Canada consolidation
debt loan mortgage. It can make the difference of you being able
to keep the family home or not.
Is saving money the only reason? Well to save cashflow is the obvious
answer but besides ‘keeping the house’ one needs to
keep sane. You need to remove the stress of having creditors calling
you night and day. Emotion is high when one remembers all the people
who literally break down on the phone and cry about the debt load
that they are under. As a Canada mortgage consultant it is painful
to hear the stories …and there are many of them! A young
mom died from breast cancer and left a widower and his 10 - year
old daughter with large medical bills to deal with. Or how about
the self-employed worker who fell and didn’t have enough
benefits to keep up on his bills and was losing the family home… countless
stores of illness or loss of work everyday … divorce or separation
every week … and downright depression suffered by all. Marriages
and relationships have been ruined by bad debt. Yes it is hard
to hear the stories but even worse to live the story. To remove
the stress one needs to pay off all the debts possible to get a
clean start again. Thankfully, the nice part about hearing a sad
story is when a Canada mortgage consultant can say ‘I can
solve it’. A Canada mortgage consultant can solve the problems
created by too many debts that have too many minimum due payments.
It is solved with a Canada consolidation loan.
There are two main routes to take for a debt consolidation loan
when using home equity. The best route is to simply rewrite or
refinance your 1st Canada mortgage or first Canada mortgage and
make the loan big enough to payoff all your ‘other debts’ in
addition to your current first Canada mortgage amount.
Some people have average to good credit. Good for them. It means
lower interest rates. It may mean even less fees in refinancing
their 1st mortgage Canada loan. It is often better to just rewrite
a first mortgage – even with some prepayment penalties – and
be able to obtain a low variable rate mortgage than to take out
a 2nd mortgage Canada loan. When Canadian equity home loan interest
rates are declining, your mortgage interest rate is also declining.
A Variable rate mortgage is a cheap source of Canadian equity home
loan financing and is especially attractive in a market where interest
rates are forecast to continue dropping. But even in a rising prime
interest rate market a variable rate mortgage still is cheaper
than many fixed rate mortgages. Many variable rate mortgages will
allow you to lock into a fixed-rate mortgage when you think interest
rates have bottomed out and may start going back up. The rates
and features for these Canadian equity home loan mortgages vary
widely from bank to bank.
But, truthfully, most people seeking a Canada consolidation debt
mortgage often have poor to average credit. Often just bad credit.
If their credit is not ‘too bad’ then it may be possible
to rewrite the first Canada mortgage as well. The rates will be
higher but much lower than a 2nd Canada mortgage would be or a
Canada second mortgage would be.
The second option is to obtain a second mortgage Canada loan. And
this is what makes a home equity debt loan possible. Credit is
not an issue. We assume it is bad. But a private lender will lend
up to 75% and sometimes, though not too often, up to 85% of the
appraised value of your home. Often the 2nd mortgage or debt consolidation
loan will be interest only or have a large enough amortization
time period (25 or even 30 years) so the payments are made as small
as possible. And average interest rate for a 75% loan to value
loan is 12%. So for a $30,000 loan then an interest only payment
would be $300 per month. Often the term expires in one year.
The good thing is that the Canada debt consolidation loan or Canada
second mortgage loan is a temporary measure. Often only in place,
waiting for your ‘new’ credit situation to be reflected
in your credit report, with all your bills paid off and with you
paying all future bills on time, and up and until your 1st mortgage
can be rewritten at its maturity date or refinanced at a time to
include the entire 2nd mortgage amount or Canada debt consolidation
For a low cost Canadian consolidation loan or Canada Debt LoanCLICK