Debt Consolidation
There are many options when it comes to debt consolidation. One of the best-kept secrets is using the valuable equity you may already have in your home. Unfortunately, many people in Alberta still assume that getting a second mortgage is required. With rates starting around 9% and as high 22% for a 2nd mortgage, this is not always the best solution.
Alberta Equity has one of the best debt consolidation programs in Alberta. We simply replace your existing mortgage and increase it to cover the debt’s you would like to pay off. With rates at all time lows, you will actually save money over your mortgage term. Here is a great example of how we are able to save you money:
| Before |
| Existing Mortgage |
| Property Value | $170,000 |
| Mortgage Balance | $130,000 |
| Interest Rate | 8.2 % |
| Term | 5 year |
| Monthly Payments |
| Car ($8000) | $250.00 |
| Visa ($3000) | $150.00 |
| Mortgage | $1021.43 |
| Total Payments | $1,421.43 |
|
| After |
| Alberta Equity Mortgage |
| Property Value | $170,000 |
| Mortgage Balance | $141,000 |
| Interest Rate | 5.75 % |
| Term | 5 year |
| Monthly Payments |
| Car ($0) | $0.00 |
| Visa ($0) | $0.00 |
| 1 Mortgage Payment | $898.81 |
| Total Savings | $522.52 |
|
As this example shows, we were able to refinance their existing mortgage before the term was up and get them the money they needed to pay off all debts. We lowered their monthly mortgage payment by $122.52 and they saved a total of $522.52 per month. They have now been able to put that extra money into an investment account for their retirement.
In order to take advantage of this program you must be a home owner and have at least 15% equity or more in your home. If you have any concerns or questions please include them in the application / comments section or email us directly.
The best way to determine whether debt consolidation is the right avenue for you is by calculating what your monthly debt payments total. Include all loans, lines of credit, credit cards and your mortgage. Take that amount and divide it by your gross total monthly income. If the number is higher than 0.50, then do not leave this site until you have had a chance to speak to one of our mortgage specialists. Our service is FREE.
Fill out our secure mortgage application and let us do the leg work for you. The secret is to determine at an early stage whether debt consolidation is the best route for you.
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