Consolidating home equity loan into mortgage

You would then have two mortgages: your first mortgage and a second mortgage which could be the debt consolidation home loan.

If this is something you're interested in doing, speak with your bank or credit union to find out how it works, to get information about the mortgage rules in Canada and if this option could work for you.

Sometimes if you have bad credit, it might be difficult to get a debt consolidation loan, so using home equity could be another possibility.

One of our Credit Counsellors will be happy to offer you debt consolidation advice.Our appointments are free, confidential and informative.You may have other options that are better for your situation, so before you increase your mortgage, take out a second one (at a higher interest rate) or apply for a home equity loan, give us a call.Finance companies and sub-prime lenders also offer mortgages.Their interest rates will almost always be higher than the bank's and can often range between 14% - 30%.A "Home Equity Loan", "Home Equity Line","refinancing your mortgage / re-mortgage" and getting a "second mortgage" are all different names for the same thing and are sometimes used as a debt consolidation option.

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