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Debt Consolidation Calculator
Compare your current high-interest balances to a new mortgage or second mortgage and see whether consolidating actually saves you money.
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Every December, thousands of Canadians feel the financial pressure of the holidays — gifts, travel, gatherings, and rising living costs all land on top of existing debts. For many homeowners, this is the time of year when credit cards peak, lines of credit stretch thin, and budgets feel tight.
This is also why debt consolidation through a private mortgage becomes one of the most powerful financial tools at year-end.
Below is a clear breakdown of how year-end private mortgage debt consolidation works, what to expect, and how to calculate your potential new payment instantly using our Private Mortgage Payment Calculator.
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Why Debt Consolidation Spikes During the Holidays
The holiday season naturally brings:
- Higher spending
- End-of-year tax planning
- Renewal notices from lenders
- Year-end bonuses or financial decision-making
- Financial reviews heading into a new year
But it’s also when many Canadians realize they need a plan to regain control of their monthly payments, especially when credit card interest rates exceeding 19–29% become difficult to manage.
A private mortgage can cut those payments dramatically.
Our Debt Consolidation Calculator can help determine how much debt you need to pay off.
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What Is Debt Consolidation With a Private Mortgage?
Debt consolidation using a private mortgage involves using the equity in your home to:
- Pay off credit cards
- Clear lines of credit
- Settle CRA debts
- Pay outstanding bills
- Consolidate multiple high-interest loans
- Cover urgent expenses without needing bank approval
Private lenders focus primarily on:
- Property value
- Equity position
- Location
- Overall risk in the file — not perfect credit or tax documents.
This makes private debt consolidation ideal for:
- Self-employed business owners
- Borrowers with bruised or recovering credit
- Clients declined or delayed by the bank
- Anyone who needs fast access to funds
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How Much Can You Save? (Use the Calculator to See Your Monthly Payment)
One of the biggest advantages of private mortgage debt consolidation is the ability to reduce monthly payments, even when the interest rate is higher than your existing mortgage.
Why?
Because you are replacing several high-interest debts with one structured payment.
Example:
If you currently pay:
- $8,000 credit card balance at 22%
- $12,000 line of credit at prime + 7%
- $5,000 remaining holiday expenses
Your total payments could be $900–$1,200/month.
A private second mortgage (e.g., $25,000–$40,000) could bring that down to $200–$400/month depending on the rate and amortization.
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Use the Private Mortgage Calculator (Instant Estimate)
Before speaking to any lender, you can run your numbers through the Private Mortgage Calculator.
It shows you:
- Your estimated private mortgage payment
- Total loan cost
- Interest-only vs. blended options
- How consolidation affects your monthly cash flow
This helps you understand what you can afford — the same way a lender evaluates your file.
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Who Should Consider a Year-End Private Mortgage?
You may benefit from a holiday-season consolidation if:
- You expect to carry credit card balances into January
- You’ve been declined by a bank or told to “wait until tax season”
- You are self-employed with fluctuating income
- You want to pay your CRA debt before penalties grow
- Your debt is affecting mental health or family budget planning
- You need funds urgently (within days, not months)
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Pros & Cons of Using a Private Mortgage for Debt Consolidation
Pros
- Fast approvals (24–48 hours)
- Funded quickly
- Credit score not the main factor
- Lower monthly payments
- Reduces financial stress
- Stops collection calls
- Helps rebuild credit when high-interest debts are cleared
Cons
- Higher interest rates than bank mortgages
- Short-term solution (usually 1–2 years)
- You need sufficient home equity
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Final Thoughts: A Financial Reset Before the New Year
Debt consolidation through a private mortgage is one of the most effective financial strategies during the holiday season. It gives you the breathing room to start the new year without anxiety, without juggling multiple payments, and without relying on strict bank approval rules.
If you want to understand your options, the best first step is to run your numbers through the Debt Consolidation Calculator and then the Private Mortgage Payment Calculator. These will give you clarity before you make a decision — and helps you move into the new year with confidence.