Debt Consolidation Mortgage Sherwood Park, Alberta
Sherwood Park Mortgage Brokers
Magnum Mortgage Corp. has been helping homeowners for over 18+ years with the consolidation of their household debt. Our Debt Consolidation Mortgages can help pay off First and Second Mortgages, Credit Card debts, Personal Loans or Lines of Credit, Vehicle loans, Business Debt, Consumer Proposal Payouts - not only can we payout household debts, but we can also payout CRA Tax Arrears / CRA Garnishments, Bank Judgements, Property Tax Arrears, & the list goes on!
What is a Debt Consolidation Mortgage?
A Debt Consolidation Mortgage is completed to facilitate the payout and amalgamation of debts into 1 loan (either in the form of a First Mortgage, or a Second Mortgage). Not only are all of the debts combined into one loan balance, but all of the individual payments are also combined into one manageable payment. As the Debt Consolidation Mortgage is secured by property, the interest rate is often lower than higher interest rate Loans or Credit Cards.
The consolidation of debt often provides borrowers with peace of mind knowing that they won't have to worry about making several different payments, to several different creditors; streamlining a borrower’s debt repayment, which allows for effective budgeting or planning for future goals.
How do I determine if I have enough Home Equity available to help with my debt consolidation?
**Please note, maximums & minimums may be adjusted depending on factors such as location, marketability of the home, ability to blanket onto additional properties, etc…
Here’s an Example of when Magnum Mortgage Corp. was able to help on a Debt Consolidation Mortgage:
What Happened? The self-employed borrower was negatively impacted due to work slowdown over the COVID pandemic, understandably, their debt level had increased significantly and resulted in further financial stress. Though they were diligent in maintaining all their individual payments, to all the individual creditors, it was getting tougher and tougher to manage. When their employment and income eventually stabilized, they had approached their bank to see if a consolidation loan was possible. Their bank was unable to help with a consolidation loan, as their past 2-year average income was too low (due to the slow down) and they were unable to qualify on a traditional loan application. Though their credit was in good shape, and they had ample equity in their home to provide as collateral, they unfortunately could not get past the 2-year average income requirement.
How was Magnum able to help? These clients were connected to us by their local Mortgage Broker, and through our commonsense lending approach, we were able to utilize their recent bank statements to help determine that work was indeed stabilizing, and their income was consistently increasing. We assisted with a Debt Consolidation (Second) Mortgage, which allowed the clients access to their home equity, to consolidate their debts and alleviate their debt repayment stress. At the end of their term, the borrowers will be in a better position to qualify on a traditional mortgage application with their Bank or Monoline Mortgage Lender, as they will have a stronger 2-year average income to help them qualify traditionally.
These borrowers were able to benefit from:
- Consolidation of their debts and their payments;
- Their credit scores experienced a boost, as their outstanding debts were paid out in full in the consolidation;
- Interest Savings, they decreased their overall interest paid (as they were paying over 18%+ interest on their credit cards);
- They were able to sleep at night, knowing that their debts with the several creditors were paid / settled, and they only had 1 payment that needed to be made every month
Have a question about debt consolidation? Give us a call today to discuss a Debt Consolidation Mortgage or a refinance of your mortgage!