Financial Consumer Agency Of Canada
Mortgage Interest
Only Calculator






Consolidating debt, and doing it well before financial distress sets in, can make a world of difference when it comes to getting approved or being declined for a mortgage. As seen in the chart below, consolidating debt can reduce monthly payments significantly and create increased cash flow.

chart

Key Benefits of Debt Consolidation

  • Lower monthly payments. Consolidating your debts gives you the ability to obtain a lower interest rate than the combined rates of all your debts. You can also reduce your monthly payments by extending your repayment term. Even with an extended term, you still have the ability to pay more than the minimum monthly payment at any time.
  • Save on credit card interest. When you consolidate outstanding credit card balances into a loan with a lower interest rate, your interest costs can be reduced significantly depending on the interest rates charged by the credit cards.
  • Leverage the equity in your home to save even more. If you use your home as collateral for a loan, you may be able to negotiate a lower interest rate for all your combined debts, and extend your repayment term, therefore lowering your payments.
  • One monthly payment. Consolidating your debt simplifies your finances by giving you just one monthly payment to make.
  • Have your debt in one place. Centralizing your debt into one vehicle can save you time and money. APL offers a range of products to make life easier.