01
Property and equity
Your property value and existing mortgages or secured claims help determine the equity available. Equity alone does not guarantee approval.
A CLEARER REPAYMENT PLAN
Debt Consolidation Mortgage for Ontario Homeowners
Bring your debts into focus. Explore a payment plan you can manage.
Explore using eligible home equity to repay selected debts. We help you compare mortgage options, complete costs and the payments that remain so your next step fits your household budget.
Review selected debtsCompare complete costsPlan for repayment
Understand your options
What is a debt consolidation mortgage?
A debt consolidation mortgage is secured borrowing used to repay other debts. It changes how you owe and repay the money; it does not erase the debt. Depending on the structure, you may replace an existing mortgage or add another secured loan.
The aim is a workable repayment plan. A smaller monthly payment can provide breathing room, but it does not automatically mean the debt will cost less over its lifetime.
Look beyond the monthly payment
A longer repayment period may reduce your payment while increasing the total cost. Compare both before deciding.
Guidance for Ontario homeowners
A clearer plan starts with the whole picture.
Your current mortgage, household budget and future plans all matter. Burke Financial helps you compare suitable options, including alternative lenders where appropriate, and understand what using your home equity would mean for you.
Eligibility factors
Who may be eligible?
02
Income and affordability
We review income records, household expenses and continuing payments. If you work for yourself or your income varies, supporting records help explain your situation.
03
Credit and current debts
Share your balances, payment history and any overdue accounts early. Collections, tax arrears and registered claims may require additional review.
Plan for life after consolidation
Leave room for housing costs, essentials and unexpected expenses. Decide how you will manage cleared credit accounts so balances do not build again.
Explore the possibilities
Which structure fits your existing mortgage?
01
Mortgage refinancing
Replace your current mortgage with a new one that may include funds to repay selected debts. Review any cost of ending the existing mortgage alongside the new loan terms.
02
Home equity loan or second mortgage
Keep the current first mortgage and add a separate secured loan where eligible. You will generally still have the original mortgage payment as well as the new loan payment.
03
Home equity line of credit
A qualifying HELOC provides revolving borrowing. It needs a deliberate principal repayment plan so cleared credit card balances do not simply become ongoing secured debt.
Understand your options
Costs and risks to understand
Request the complete written costs, including applicable appraisal, legal, lender and brokerage charges and any existing mortgage penalty. Confirm the debts to be paid, the funds available after costs and the payments that will remain.
Your home is security for the borrowing. Missing required payments can put it at risk. Consolidation should also be compared with suitable unsecured options or advice from a credit counsellor or Licensed Insolvency Trustee where appropriate.
| Before | What to compare after consolidation |
|---|---|
| Payments on debts you want to repay | New payment plus any mortgage and debt payments that remain |
| Outstanding account balances | Total new secured borrowing and fees financed into it |
| Expected repayment dates | New amortization, loan maturity and renewal requirements |
| Current unsecured obligations | The consequences of securing those balances against your home |
Prepare for your review
Documents for your debt review
List credit cards, personal loans, lines of credit and other balances you want to address, with each account’s current payout and payment. The lender and legal process determine which debts can be included.
- Current mortgage statements and property information.
- Recent statements for each debt you want to repay.
- Income records and a household budget.
- Details of other secured loans or registered claims.
- Information about overdue payments, collections or tax balances.
A clear next step
Three steps to a clearer repayment plan
Map what you owe
List the balances, payments and debts you want to address.
Compare the structures
Review available financing, complete costs and the payments that remain.
Put the plan into practice
If you proceed, confirm how selected creditors will be paid and set a budget for the new obligations.
Debt Consolidation FAQs
Clear answers before you decide.
Will consolidation give me just one payment?
It can combine payments on selected debts, but the final structure matters. A second mortgage leaves your first mortgage in place, and excluded debts remain payable. Review every continuing obligation before proceeding.
Will I pay less each month?
Possibly, depending on the structure and repayment period. Compare the complete household payment total before and after, including debts that remain. No payment reduction should be assumed until the proposal has been calculated.
Does a lower payment mean lower total cost?
No. A longer repayment period can reduce the monthly payment while increasing the amount paid over time. Compare the full repayment schedule and upfront costs.
Can I consolidate if I have credit challenges?
Potentially. Some alternative lenders consider applications that fall outside standard lending criteria. Your equity, income, credit history and debts still need assessment, and the terms may differ.
Is debt consolidation the same as a consumer proposal?
No. Mortgage consolidation involves borrowing to repay debts. A consumer proposal is an insolvency process administered by a Licensed Insolvency Trustee. Ask a trustee about that option if repaying your debts through new borrowing is not realistic.
Can I keep my existing mortgage?
That may be possible with a second mortgage or another eligible structure. Compare the cost of keeping it and adding new borrowing with the cost of refinancing it.
Will consolidation improve my credit score?
There is no guaranteed score improvement. Credit outcomes depend on payment history, balances and future borrowing behaviour. Keep required payments current and avoid rebuilding balances on repaid accounts.
Can I include tax arrears or collections?
They can be reviewed, but inclusion is not automatic. Provide current statements and details of any registered claims or legal action. Additional payout and legal requirements may apply.