Debt Consolidation


Debt Consolidation

Debt Consolidation

There are many options when it comes to debt consolidation. One of the best-kept secrets is using the valuable equity you 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.

Apply for Debt Consolidation

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:

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
Alberta Equity Mortgage
Property Value $170,000
Mortgage Balance $141,000
Interest Rate 5.75 %
Term 5 year
Monthly Payments
Car ($8000) $0.00
Visa ($3000) $0.00
New 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.

Free Mortgage Pre-approvalThe 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.

The Get Out of Debt Calculator
Monthly Income
Gross Monthly
Monthly Expenses
Loans & LOC
Credit Cards
Question mark Use the calculator on the right to find your grade!

Click Calculate on the right and we'll calculate your TDS ratio and give your finances a grade. The TDS ratio is a measure of how much money you make in comparison with how much you pay every month. It's one of the major numbers used by lenders when assessing your financial state.

Ok, so you maybe debt isn't an issue

Very few Canadians are lucky enough to have earned such a level of income. People with this kind of earning power have all of the power to make even more.

You're doing well

In fact, you're doing really well. You have the financial stability to do more.

Times are tough, but there's no reason to worry

Debt consolidation helps people having a rough time the most. It's not just the lack of money kicking around, it's the interest you're paying on debts from your car and your existing mortgage that hurt the most.

Consolidation is about simplifying it all, and making it manageable. With rates being at near all-time lows, now is the best time to roll it all in to one very manageable, low interest debt. These types of services are saving thousands of families from bankruptcy every year.

Investing can build your savings

Debt ratios lower than 40% typically mean that a client has some money to spare each month.

While there are plenty of reasons to put your money in a savings account, there's plenty more to invest it and grow it substancially. Investments can be very safe and yield far greater returns than your typical savings account. Moreover, investments don't have to be long-term savings for your retirement. You can build up your assets and save money for what you want to use it for, whether that's a start-up business, more education, a family, or a dream vacation.

Investment is on the horizon

You're almost there. In fact, you're so close that debt consolidation will open up a whole new realm of possibility!

With the money that you'll free up every month by consolidating your debt, you'll soon be able to put money away and invest in the future. Whether it's as simple as putting money in a Tax-free Savings Account, or as powerful as investing in properties.

You might want to double-check your values

Did you forget to put a zero behind your gross monthly income, one too many on one of your monthly expenses?

This large a debt ratio means that your debts far exceed your monthly income. If this truly is the case, you may need to research bankruptcy law in Alberta.

Optimizing your finances

Most Canadians live in the 40-60% TDS range. Generally, they're on-top of their finances, but there's not a lot of freedom in choosing where their money goes.

Debt consolidation under your terms will give you more freedom to use your money. Combined with a good budgeting strategy, debt consolidation can open up a lot of opportunities and take a lot off your mind.

Alberta Equity has helped over 50,000 people find and qualify for the best mortgages in Canada for over ten years. We do all of the heavy lifting and ensure that you get the best mortgage rates and product features available. Apply online for a free, no obligation consultation.