Debt Consolidation in Alberta and BC

One payment instead of several. Use the equity in your home to clear high-interest debt and get your monthly budget back.

The short answer: If you own a home in Alberta or BC, you can generally borrow up to 80% of its value, and in some cases up to 85%, to pay off credit cards, loans and other balances. Many of our clients save around $1,500 a month once that debt is cleared. Whether it makes sense depends on your equity, your income and the total cost, and we lay all of that out before you decide.

How consolidation works

Debt consolidation pays off several debts with one new loan secured by your home. That can be a refinance of your first mortgage, a second mortgage, or a home equity line of credit. Because your home secures the loan, the rate is usually lower than credit cards or unsecured loans. The trade-off is that your home now secures debt that wasn't secured before.

Your options compared

There's more than one way to consolidate. Here's how the common options compare, so you can see why we might recommend one over another.

Refinance your first mortgage. You replace your current mortgage with a larger one and use the difference to pay off your debts. This usually gets the lowest rate. If you break your mortgage before renewal, there may be a penalty, so we check that first.

Second mortgage. A separate loan behind your current mortgage. Your first mortgage and its rate stay in place, which can make sense when the penalty to break it is high. The rate is higher than on a first mortgage.

Home equity line of credit (HELOC). A credit line secured by your home. You pay interest only on what you use. The rate is usually variable, and you can draw on it again after paying it down, so it takes discipline.

Unsecured consolidation loan. A personal loan from a bank or credit union. Your home isn't used as security, but approval and the rate depend heavily on your income and credit score.

Debt management plan. Offered through non-profit credit counselling. You make one monthly payment to the agency, which works with your creditors, often to reduce or stop interest. It shows on your credit report while the plan is active.

Consumer proposal. A legal process filed through a Licensed Insolvency Trustee to repay part of your unsecured debt. It stops collection action, but it stays on your credit report for years. If you own a home, talk to us first. Using your equity may cost less.

We'll show you which of these you qualify for and what each would cost, side by side.

What the process looks like

It starts with a short call, then a 10-minute application by phone. We send you a proposal based on what you should qualify for, our team requests your documents, and we send your file to multiple lenders to find the best solution, not just the best rate. Once you sign the approval, the appraisal is ordered and you sign with the lawyer. Most files go from first call to funds in 10 days to 4 weeks.

What it costs

Costs depend on the solution that fits your situation. Depending on the file, there may be lender fees, a broker fee, legal fees and an appraisal, and some lenders accept a desk appraisal instead. You see every fee in writing before you sign anything.

What clients have saved

One client was carrying $80,000 in credit card debt plus a mortgage. We consolidated everything into one payment, saved them $2,700 a month and put $50,000 in their pocket for a kitchen renovation. Another was told she needed a private mortgage with $12,000 in fees. We cleared her debt with a TD Bank approval on her pension income instead.

Compare the total cost

A lower payment spread over a longer term can cost more in interest overall. Look at the rate, the fees, any penalty for breaking your current mortgage, and how long it will take to repay. We put your current payments and your new payment side by side so you can see the real difference.

Is consolidation the right fix?

If your debt came from a temporary setback and the new payment fits your budget, consolidation can give you a fresh start. If you're regularly spending more than you earn, new debt only buys time. In that case, talk to a credit counsellor before borrowing against your home.

Related guides

Let's talk it through

Book a call and we'll go over your options with you.

Alberta: 587-900-0036 | BC: 604-200-3228

These guides are general information, not a mortgage offer or personal advice. Every approval depends on lender review of your income, credit, property and documents. Elevate Lending, powered by BRX, serves clients in Alberta and British Columbia.