Debt Consolidation Ontario

Debt Consolidation Mortgage in Ontario

If you own a home and carry higher-interest debt, consolidating that debt into your mortgage or home equity can simplify your payments and lower the rate you pay on the balance. It is a mortgage decision, with real trade-offs to understand.We are an FSRA-licensed Ontario mortgage brokerage, not a lender. We help you weigh whether consolidating into your mortgage makes sense, subject to qualification.

Written by the HB Mortgage Centre team. Reviewed by Hardeep Batoo, Principal Broker (licence M13002408). HB Mortgage Centre is an FSRA-licensed brokerage (#13449). Last updated: June 23, 2026.

Talk to a broker Call (647) 542-6100

FSRA Brokerage #13449Â·Hardeep Batoo, Broker Licence #M13002408Â·Ontario-wideÂ·One application - multiple lenders

The basics

How does mortgage debt consolidation work?

There are three common routes: a refinance of your existing mortgage, a second mortgage, or a HELOC. Each uses your home's equity to pay off higher-interest balances, leaving you with a lower-rate secured debt. Which route fits depends on your mortgage, your equity, and your goal.

Not sure which of these fits your file? Talk it through with a broker. No cost, no pressure.

Here is the part most ads skip. A lower interest rate can reduce what you pay each month and over time. But if you spread the consolidated debt over a long mortgage amortization, you can end up paying more total interest than if you had cleared it quickly, even at the lower rate. The monthly relief is real; the total-cost picture depends on the term you choose. We will run both numbers with you.

Folding higher-interest debt into a mortgage or home equity can lower your blended interest rate and replace several payments with one. The trade-off is that a longer amortization can mean more total interest over time. Whether it helps depends on your numbers.

Who it's for

Who does a debt consolidation mortgage suit?

It can suit a homeowner with enough equity, a higher-interest balance, and the discipline not to rebuild the debt. It is usually the wrong move if you do not have the equity, if the longer amortization would cost you more than it saves, or if the real issue calls for a different kind of help. We will tell you honestly which is the case.

Your credit card or loan interest rates are materially higher than available mortgage rates

You have significant home equity and can qualify for refinancing or a HELOC

Monthly cash flow is strained by multiple minimum payments across several debts

You want to simplify: one payment, one lender, one statement

You are approaching a mortgage renewal and can consolidate without a prepayment penalty

You need to pay out a consumer proposal or clear a collection to qualify for a new mortgage

You have a plan to avoid re-accumulating the debts after consolidation

Your existing mortgage has an open term or low prepayment penalty

If you cannot qualify with a standard lender due to credit or income, a second mortgage or private mortgage may allow consolidation based on equity. Rates are higher but may still improve cash flow versus the debts being replaced.

Rates & costs

What debt consolidation actually costs

The economics depend on your existing mortgage, the penalty to break it (if any), and the debts you are consolidating. In many cases the savings are substantial - in others, a HELOC or second mortgage is a better path.

Mortgage rates →Second mortgage →Home equity line of credit →

Rates, terms, and costs are subject to lender approval, borrower qualification, property review, and market conditions. O.A.C. E.&O.E.

What it costs

Prepayment penaltyMay apply if breaking your mortgage before term end
Legal feesRequired for a new mortgage or HELOC; often covered by the new lender on a switch
AppraisalNew lender typically requires a current property appraisal
Broker feeWhere applicable - disclosed in writing. Standard bank deals typically lender-paid
New mortgage rateTypically well below the rates on the debts being consolidated

How it works

How do we structure it?

Review your debts and equity

We review your debts, your mortgage, and your equity, then model the consolidation honestly, including the total-interest effect, before you decide.

Model the consolidation both ways

Everything is subject to qualification and lender review. We do not promise savings, because that depends on your numbers and the term you choose.

Compare all routes

Since December 2021 we have placed over $1 billion in funded mortgages with more than 50 lenders, so the comparison across the refinance, second mortgage, and HELOC routes is grounded in real lender options.

One application - multiple lenders

We submit to applicable lenders simultaneously. One credit pull, multiple options. You choose the best offer.

Fund and pay out

We work with homeowners across Ontario, mostly by phone and email, from our Mississauga office. Mortgage funds are used to pay out the debts directly.

Before you consolidate

This is a mortgage, not an insolvency process

To be clear: a debt consolidation mortgage is a home-financing product. It is not a consumer proposal, a debt settlement, or any insolvency process, and it does not reduce what you owe. It re-tools how you carry the debt, using your home's equity. If a different kind of help is right for you, we will say so.

Compare second mortgage vs refinance →

Why a broker

One application - banks, B lenders, and private options compared

Since December 2021 we have placed over $1 billion in funded mortgages with more than 50 lenders. Going directly to your bank limits you to their one offer. A broker can compare your existing lender's terms against other banks, credit unions, and B lenders simultaneously, with one application and one credit inquiry.

If the math does not make sense for you, we will tell you that too. The goal is the right outcome, not a mortgage for the sake of one.

Our lender network →

FAQ

Frequently Asked Questions - Debt Consolidation Mortgage Ontario

Can I consolidate debt into my mortgage in Ontario?+

Yes, through a refinance, a second mortgage, or a HELOC, using your home's equity, subject to qualification.

Refinance, second mortgage, or HELOC, which route?+

It depends on your existing mortgage, your equity, and your goal. We will compare them with you.

Does consolidating actually save money?+

A lower rate can help, but a longer amortization can raise total interest. The monthly payment usually drops; the total cost depends on the term.

Is this the same as a consumer proposal or debt settlement?+

No. This is a mortgage product, not an insolvency process, and it does not reduce what you owe.

What do I need to qualify?+

Enough equity, a manageable file, and lender approval. We will tell you where you stand.

What does it cost to set up?+

It depends on the route. A refinance can trigger a prepayment penalty on your existing mortgage, plus possible legal and appraisal costs. A second mortgage or HELOC leaves the first mortgage alone but carries its own rate and possible fees. We include these costs in the model so the comparison is honest.

Is it risky to secure credit card debt against my home?+

It is a real trade-off. Consolidating turns unsecured debt into debt secured by your home, so missed payments carry higher stakes. That is why the new payment has to be genuinely affordable, and why we model it before you commit.

See if consolidating into your mortgage makes sense

Bring us your balances and we will model it honestly, monthly relief and total cost, so you can decide with clear numbers. No cost, no obligation.

What happens next: you share your balances and mortgage details, we model the consolidation both ways, monthly and total cost, and you see the numbers in writing before deciding. The review is free, savings are never promised, and the same broker handles your file from first call to close.

Apply Call (647) 542-6100

Rates, terms, and costs are subject to lender approval, borrower qualification, property review, and market conditions. Broker compensation is typically paid by the lender for standard transactions. O.A.C. E.&O.E.

FSRA Brokerage #13449 Â· Hardeep Batoo, Broker Licence #M13002408 Â· Ontario-wide

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