Debt consolidation

How can debt consolidation work for you?

If you own a home and have debts beyond your mortgage, we have the tools to help make your current circumstance turn into accessible funds.   Simple put, we can save you a ton of money. 

Debt consolidation is simply taking all your other debts, wrapping them into your mortgage, lowering the interest rate and putting extra hard-earned cash into your pocket every month.  Don’t stop here though, read more to find out why you should be doing this and why it makes sense.

What types of debts can you consolidate?

Anything really! Many are surprised of just how much qualifies for debt consolidation. We deal with anything from car to boat and ATV loans, furnace and home renovation loans, credit card and line of credit debt, even student loans.

Why you should consolidate?

  • The lowest rate on any debt is a mortgage, this is truer today than ever.
  • Interest on debt can range from 4% to above 15%. Compare that to a mortgage where the rates are lower. The difference in monthly interest costs is the difference in money you can be keeping for yourself. Simply put more money into your pocket.
  • If you want to get even more technical to understand the savings you should know that many debts including, credit cards and line of credits are compounded daily or monthly where as most mortgages are compounded semi-annually so your not paying interest on interest every day or month.
  • We understand the numbers can get a little overwhelming. That is why we are here to help. The important thing is that consolidating your debt will save you money.
  • Equally important to consolidating your debt is understanding cash flow.
  • Another easy to overlook advantage is cashflow. if your interest rate lowers, your monthly payment will also lower. Each payment will have a bigger impact on your overall debt, but also each payment will reduce noticeably in size. This not only effectively attacks your long-term debt but creates financial space to enjoy more of what you have each month.  
  • What does this all mean to you? It means that vacation you had to put off. It means security for your children(s) education. Ultimately it means comfort, security, and freedom.

What happens if you don’t consolidate and fail to make your paments?

  • Even if you do not struggle to make payments, why not optimize your situation to pay less and save more? Do not fall into a trap. Our team offers free consultation, and our combined experience has helped many go beyond simply managing debt, but elevating quality of life.
  • Failing to make payments will often lead you into another trap.
  • A single missed or late payment will drop your credit score. Which means your next loan will be that much harder to get, and worse, will be at that much worse a rate. Lenders will now look at you negatively. 
  • Banks have dedicated departments specifically for calling and badgering customers. This starts usually after the 2nd missed payment. 
  • Debt is then often sold off to collectors who have their own methods of harassment. And your credit score has now declined to a seemingly inescapable low full of warning signs which last for your years on your credit report. Lenders down the road will show doubt and distrust, greatly reducing your options and opportunities for financial security and freedom.
  • Worse than all that, legal action may be taken against you or even your home.
  • This is the very opposite of us and our process. We recognize the difficulties of loans, debts, accidents, and just rough patches in life. That is why we thrive on working not only for you, but with you, in your financial management and success.

For more info on length of time judgments, missed payments and other delinquencies remain on your credit report, click here: https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/information-credit-report.html

 

 

What other options do you have besides doing this consolidation offered by us?

  • The best alternative course of action is seeking legal advice. This would be in the form of a consumer proposal, or if dire enough bankruptcy.
  • Though these options exist to serve you, we question their merits. Lawyers will not protect you against judgments made against your property. And even should an option pan out in your favor, they are at the expense of substantial legal fees.
  • These may be a viable option if our program doesn’t make sense but the major problem with this two legal services is that if you have enough equity in your property to consolidate these debts the creditors will usually put a judgement against your property and will get their money one way or another with added these legal fees too.
  • We prioritize informing clients and presenting options best suited to your needs. However, debt consolidation often avoids cumbersome and time-consuming negotiations with creditors, lawyers, and sometimes courts.
  • We help put you in control of your situation, limit harm to your credit, and get you above and beyond your creditors once and for all.
  • So it really doesn’t make sense to go down this route, damage your credit for years to come causing you to be stuck with high interest and fee loans only to have that same judgement or debt have to be paid anyway.

 

 

Why do we do this and who pays us?

  • We are paid a referral fee by the lender who we partner with to arrange this consolidation for you.
  • We also charge an underwriting fee of $1500 on a 1st mortgage, or $3000 on a 2nd mortgage, which is added to your consolidation and paid only on closing once your consolidation is finalized.

 

 

You have a home and debt, but no difficulty paying bills, what use are we to you?

  • Why not lower how much money you are spending towards interest costs, instead of more efficiently empowering your dollar towards efficiently paying off debt?
  • Since you are making the monthly payments anyway, why not lower them and put more money in your pocket for other expenses?
  • A free consultation is a prudent way of ensuring your continued success. Quality of life, financial security, and financial success can always be better.

 

Why us?

  • This is our specialty and what we focus on.
  • We know the underwriting process and what lenders are looking for when it comes to approving your file.
  • We pride ourselves on our success rate getting loans approved and closed, with rates and terms exemplary for our customers.
  • As a broker think of us as the middle people. We review your documents, make professional recommendations before submitting you to the lender, and pair you with a lender who can best serve your situation.
  • We already have an established relationship with the lenders which makes it easier for you to get approved.
  • We do not profit off the terms of a loan. As such we prioritize negotiating for your needs.
  • Every client and every loan is unique. Our vast network of over 30 lenders nationwide positions us to connect you to your best partner.
  • Our track record since 2008 is a myriad of success for numerous families. We consider ourselves responsible for your success in debt management. Your success bolsters our reputation and success with lenders and future clients.
  • If a relationship between a client and a lender sours on account of our service, our relationship with that lender also sours. We have earned their trust as much as we work to earn yours.
  • Due to the volume and rate of approved loans, we are benefited with great rates which we happily pass on to our clients.

 

Will a longer amortization result in paying more for the same debt?

  • Debt often takes a long time to pay down and remove as is.
  • Your added monthly saving can be used towards paying the consolidated loan, reducing not only the total amount you end up paying but the time frame you are able to pay it back in.
  • Consolidation comes with a unique piece of mind. Each individual debt, and potential collector, is wrapped into one manageable structure for financial and personal ease with the money being saved easily being put back into the new consolidated loan ultimately decreasing the time it takes to pay it down which is far more than your paying now.
  • Ultimately consolidation pays of your debt sooner because you are saving more now. We have the tools to show you this as well.  

 

Which lenders do you work with?

  • Scotia Bank
  • TD
  • BMO
  • RBC
  • CIBC
  • ATB Financial
  • Alterna
  • B2B Bank- Laurantian Bank
  • Bridgewater Bank
  • Coast Capital Savings Credit Union
  • Community Trust
  • Duca Credit union
  • Equitable Bank
  • First National
  • First Ontario Credit Union
  • Heaventree Bank
  • Home Trust Bank
  • Italian Canadian Savings
  • ICICI Bank
  • Lendwise Mortgage
  • MCAP
  • Magenta Mortgage
  • Manulife Bank of Canada
  • Marathon Mortgage Corp
  • Meridian Credit Union
  • Merix Financial
  • Optimum Mortgage
  • Peoples Bank of Canada
  • RFA- Formerly Street Capital
  • RMG Mortgage
  • Radius Financial
  • Right Mortgage
  • Servus Credit Union
  • SimplicIT
  • SureLine
  • Wealthline
  • XMC Mortgage Corp
  • Private Lenders and MICS

 

 

What is the process and how long does it take?

  • The first step Is to complete a short and simple application. You can complete it online or over the phone with one of our members.
  • The information provided will enable us to lay out a few scenarios to be presented to you as soon as the next day.
  • While reviewing your options we may require follow up information. We remain constantly in contact, so you know what we need and where we are in the process at all times.
  • We make sure to provide you with a thorough understanding of your options, and how you are benefited. Once you are satisfied and agree to the terms, we obtain any significant or outstanding documents in order to put in motion your consolidation.
  • The underwriting team will then work with your loan officer to strengthen your case and submit it properly to the lender for an approval.
  • Lenders tend to respond within 2 to 5 days. We continue to remain in contact, following up on any outstanding information or documentation to make sure we get you your loan immediately upon approval.
  • Once our underwriting team has the approval they will be preparing the paperwork and reviewing any conditions, ensuring you are left with the best terms of the agreement, before sending it to you for your final go ahead, signing, and closing procedure.
  • At this stage we will require your real estate lawyer’s contact information. Should you need we will happily direct you to one of many lawyers we work with routinely. Do not worry if you don’t have one or if you prefer to use our trained and experienced lawyers. We have a large network of lawyers across Ontario that you can use.
  • Depending on the conditions, the most time consuming usually being a home appraisal, can take up to a week. We have trusted appraisers amongst our network.
  • Throughout all this time our underwriting team is drafting and providing any remaining documents required for signing and closing, again to ensure that everything is done timely and at your convenience.
  • Once your file is closed the debts will be paid and consolidated.
  • This process can be done as quickly as 4 days to 4 weeks depending on the complexity of the file. Your continued care and assurance remain a mandatory priority through every stage of the process.

 

Do you still have to make payments on your existing debt while we go through this?

  • Yes, until your file closes your current obligations still hold.
  • In a situation where you are already behind payments, we are able to partner with our debt settlement partner who may permit a hold on payments until a deal is brokered and your consolidation is complete which sometimes even saves you more money.

 

Are there any out of pocket costs?

  • We try to minimize this as much as possible.
  • The most common cost is the appraisal cost, and in some cases retainer fee for your lawyer which is a reimbursable cost.
  • We aim to limit these when we can.

 

How do I get started?

What happens if you do not get approved?

  • We do not think in terms of non approval. We think in terms of running down options until one fits and benefits you.
  • Our process involves presenting at least three options for you. In the unfortunate circumstance one does not work we will already have prepared an alternative solution.
  • No situation is without a solution. In the worst of circumstances there is simply a lack of equity which may require a bit of time to build. In which case we continue to closely monitor your situation and jump at the first opportunity to get you approved.

 

Do the lenders have fees?

  • Every loan and every lender is different so yes and no.
  • If your credit score and income are of a certain amount we can underwrite you into an “A” lender which will not have a fee.
  • If this is not the case the lender may charge a fee which is 1% on a 1st mortgage and something similar but slightly different on a 2nd mortgage due to the usually lower amount.

You are unemployed or self employed and my net income on my tax returns due to expenses to operate is low, do you have options?

  • Of course you do. Our network of diverse lenders is specifically intended to cater to a variety of services and needs.
  • We know equity lenders who prioritize the value of your home over current earnings.
  • Many lenders we have partnered with prioritize self employed mortgage programs, aiming to bolster your business’ success and value and we’re familiar with our lender’s self employed underwriting guidelines to get your approval.

     

     

     Give me an example or a scenario of the way your consolidation serviced helped a recent client of yours?

    Carmen from Brampton. Current debt load- paying

     

                        Balances        Payments                                                           

    Cibc Mortgage                    $100,000        $650

    Cdn  Tire MC                        $221          $10

    RBC visa                                 $9,122        $156    OVER LIMIT paying interest only

    Lowes CC                               $9,317        $280 

    Cap 1                                      $740           $25

    HBC Card                             $228           $10

    TD visa                                  $15,000          $247    MAXED paying interest only

    BMO LOC                              $5,039          $164    OVER LIMIT paying interest loan

    Citi MC                                   $4,203            $90    MAXED paying interest only

    Cibc   LOC                            $10,000         $217     MAXED paying interest only

    Costco  CC                           $434           $15

    Scotia visa                            $12,000           $60    MAXED paying interest only

    Bns visa                               $19,000          $397    MAXED paying interest only

    Cibc    CC                               $9855          $126 paying interest only

    TOTAL     $195,159          $2447

     

     

     

     

    Carmen from Brampton. After consolidation

     

                                                   Balances              Payments                                                           

    Scotia mtg                           $195,159              $750                       interest and principle                    

    TOTAL Savings    $1649 monthly or $20,364 per year.

     

     

     

     

    Holger and Birgit from Pickering.  Current debt load

    Balances              Payments                                                           

    Htc mtg                                 $362,000        $1772

    Lendcap Boat Loan             $15,000         550

    TD Visa                                   $6435        $199    OVER LIMIT

    TD LOC                                  $15,535        150   paying interest only

    TOTAL     $398,970          $2671

     

    Holger and Birgit from Pickering.  After consolidation

    Balances              Payments                                                           

    new mtg                                               $398,970        $1785 interest and principle

    TOTAL     $398,970          $886 monthly savings $10,632 yearly savings