Debt Consolidation
- Are you over-indebted?
- Do you have several credit cards that are unpaid at high interest rates?
- Do you have a personal loan that is expensive?
- Are you juggling different creditors, complicating your accounting?
- Are your debts weighing so heavily on you that you are considering bankruptcy?
Debt consolidation (or regrouping) can be advantageous for you!
Although your debts will not disappear, they will be spread over several years at a favourable interest rate, allowing you to pay them off more quickly.
Consolidation (or consolidation) of debts can be advantageous for you!
Serving the boroughs of the North Shore and Laval, Victor Hugo Pereira’s team will help you borrow money from a single financial institution so that you can finally pay off your debt. Specifically, this can be accomplished by increasing your mortgage to borrow up to 80% of the equity in your property.
Your debts do not automatically disappear: they are spread over several years at a favorable interest rate, making them more manageable.
What is debt consolidation?
Debt consolidation consists of combining all your debts into a single payment. It involves borrowing from a financial institution an amount corresponding to some or all of your debts. In this way, you will be able to pay off all your other creditors at once or the debts that cost you the most in interest, while benefiting from a lower average interest rate.
Debt consolidation is advantageous when the interest rate offered by the financial institution as part of this strategy is lower than that charged by other creditors, such as credit card companies, whose annual interest rates are among the highest.
The Xperto Victor Hugo Pereira team, working on the North Shore and in Laval, offers you to borrow money from a single financial institution to get out of debt.
Act quickly
If you find yourself in financial difficulty and unable to pay your debts on time, contact us quickly before your late payments cause too much damage to your credit record. This will increase your chances of being granted a debt consolidation loan at a favourable interest rate.
We find the best loan conditions for you, free of charge, depending on your situation.
Are you an owner?
Consolidation via mortgage
If you own a home, condo or cottage, you may want to consider debt consolidation via mortgage. This strategy involves refinancing your mortgage to borrow up to 80% of the market value of your property, less the value of the mortgage.
In addition to paying your debts, you could also use the money to :
- buy a car, motor vehicle or boat;
- buy a swimming pool;
- renovate your home;
- invest in your business;
- support your children financially in the acquisition of their property.
Save big with Multi-Prêt
While the interest rates of personal loans or credit cards can be as high as 15%, mortgage loans vary from 2% to 5%.
Start saving now, call us today: 450-682-7738.
When it comes to refinancing your mortgage for debt consolidation purposes, we will help you find the best mortgage rate available, free of charge.
Is it possible to consolidate debts via a mortgage without having a mortgage?
Someone who has already owned a home for a few years and makes their mortgage payments every month will have a good chance of increasing their mortgage to consolidate their debts via the mortgage.
On the other hand, things may be more complicated for someone who is about to buy a house and wants to take out a large mortgage to consolidate their debts. Eligibility for this type of loan will depend, among other things, on the applicant’s file.
If this is your case, it will be very useful to call upon Xperto mortgage brokers in Laval, who work with a multitude of financial institutions to increase your chances of qualifying for debt consolidation through a mortgage.
The benefits of debt consolidation
- You will most likely get a lower interest rate than what you currently pay, as mortgage rates are much lower than credit cards.
- You will improve your credit rating because you will quickly pay back your current creditors.
- It will be easier for you to manage your portfolio because you will now have only one creditor.
Not a homeowner?
The secured personal loan
A secured personal loan allows you to borrow up to $35,000 from a bank or other financial institution to consolidate your debts. To qualify, however, you must pledge one or more of your assets, such as your car, as security. A secured personal loan gives you the freedom to repay your loan at any time.
Note that this type of loan can also be used by homeowners who want an alternative to mortgage refinancing (for consolidation via the mortgage). However, the interest rates will be higher.
The unsecured personal loan
If you are not a homeowner and want to consolidate your debts, you can turn to an unsecured personal loan, which has a maximum of $20,000. Because of its riskier profile, this type of loan generally has higher interest rates than a secured personal loan, but is still profitable compared to those charged by credit card companies.
We will find the best rates and negotiate terms for you that respect your ability to pay.
The benefits of debt consolidation
- Savings
The financial institution will most likely offer you a better interest rate than your other creditors. - Lower monthly payments
With debt consolidation, your monthly payments will be lower than the total of your individual payments combined. - Faster reimbursement
Since the interest rates offered by financial institutions are lower, you will pay off your debts more quickly. - Simplicity
It will be easier for you to manage your portfolio, as we will now have only one creditor. You will only have to make one monthly payment instead of many payments at different times. No more costly oversights. - No impact on your credit rating
If you make your payments on time, a debt consolidation loan will not affect your credit rating, making it easier for you to apply for other credit.
You will even improve your current credit rating, as you will pay off all or most of your creditors immediately.
End your debt now.
Am I eligible for a debt consolidation loan?
To qualify for debt consolidation, we will submit your application to different financial institutions which will consider three critical criteria: your credit history, the net worth of your property and your personal income.
Are you afraid that your application will be rejected? You are not alone. This solution is often offered to people who suffer from over-indebtedness. Our role is to find a solution for you.
What criteria will be checked to qualify for debt consolidation?
- Your credit history and rating
Your credit history will play a major role in whether or not your application is accepted. Before lending you large sums of money, the financial institution will want to know whether you have a history of paying your regular bills (such as electricity and internet) and loans on time.Applications are generally accepted from borrowers with a medium to high credit score of 680 or more. - Your ability to pay and your debt ratio
On the one hand, your monthly income must be high enough to allow you to make the payments on your debt consolidation loan (including the amount borrowed and the interest to be paid). In this respect, the stability of your employment will also be considered.On the other hand, your accumulated debts must correspond to a debt ratio of less than 30%. Go here to calculate your debt ratio. - The value of your property
If you are a homeowner and your house, condo or cottage has an attractive market value, you will significantly increase your chances of obtaining a loan, in addition to qualifying for consolidation via the mortgage. - Your assets
If you have valuable assets, such as a property or a car that is fully (or almost fully) paid for, you can put these assets up as collateral, which will encourage financial institutions to give you the loan you want.
Worried that your application will be rejected because you have bad credit? Take a breath. You are not alone. This solution is often offered to people who suffer from overindebtedness. Our role is to find a solution for you.
Can I opt for debt consolidation via a mortgage if I do not already have a mortgage?
Yes and no. Someone who has owned a home for a few years and makes mortgage payments every month will have a good chance of being able to increase their mortgage loan for debt consolidation.
On the other hand, things can get complicated for someone who is about to buy a home and wants to make a large mortgage loan to consolidate their debts.
That is why it is advantageous to use a mortgage broker to analyze your file and specific needs. Our mortgage brokers at Xperto in Laval work with a multitude of financial institutions to increase your chances of being eligible for debt consolidation through a mortgage.
Multi-Prêt’s Victor Hugo Pereira ensures your financial health
Although debt consolidation is a solid choice in most cases, we remind you of two rules to follow regarding this practice:
- Do not opt for long-term depreciation to pay your consumer debts: the interest you have to pay over the years will be too costly.
- Split your mortgage in two: choose a long term (20 to 25 years) for the first part and a shorter term (between 5 and 7 years) for the second part.