Debt Consolidation

In this day and age credit is a very important aspect of our daily lives. So many things are dependent upon it. Using the equity acquired in your home is a smart way to pay off the high interest rate credit cards, loans, and consolidating your debt.

What is Debt Consolidation (Refinancing): Simply put; it is when a home owner increases their current mortgage. (or places a mortgage on a home that is currently free of financing, with equity built up over time) to include high interest debts that they have accumulated over time.

How it Works: Mr. Homeowner owns a house worth $300,000.00 and has a mortgage on the house of $150,000.00. Equity is the difference between what the home is worth and the amount Mr. Homeowner has owing on it. In this case Mr. Homeowner has $150,000.00 worth of equity in his home.

Let’s say Mr. Homeowner has $70,000.00 in high interest debt such as credit cards and loans. Since high interest debt is one of the major contributors to bankruptcies in Canada, our team would do the research and determine a plan of action. In this situation, obtaining a new mortgage to include all the high interest rate debts is the answer.

Mr. Homeowner would pay off the current mortgage of $150,000.00 and the $70,000.00 in high interest debt all in one shot. This would now lower total monthly payments and saving money that would otherwise be paid to credit card and loan companies.

Example:

Mr. Homeowners Current Mortgage $150,000.00

Total Debt Monthly Payments

Line of Credit $30,000.00 $900.00/m

Loans $25,000.00 $600.00/m

Credit Cards $15,000.00 $450.00/m

Total Debt $70,000.00 $1,950.00/m in Payments

Consolidated Payment $427.00/m in Payments

Monthly Cash Flow Savings $1,523.00/m in Savings

The Homeguard Team has been specializing in providing full debt consolidation services through mortgage refinancing for over 24 years. We work with Mortgage Lenders who are ready to lend up to 100% of the value of your home to help lower your total monthly payments. On average, we have saved clients up to 85% on their monthly bills.

Give the Homeguard Team a call today for a FREE CONSULTATION at 1 (800) 225-1777.



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