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How can I use my home to consolidation my high interest debt?
If you own a home, you may be able to use the equity you've built up to pay off high-interest debt such as credit cards, personal loans, or other balances. Equity is simply the difference between your home’s value and the amount you still owe on your mortgage.
By accessing this equity through a refinance or home equity loan, it’s often possible to consolidate multiple debts into one simpler payment at a much lower interest rate. This can reduce monthly payments, save interest over time, and help you get back on track financially.
Every situation is different, but with the right strategy, your home equity can be a powerful tool to simplify your finances and move toward becoming debt-free faster.
How much equity can I access?
How does it work?
Homeowners may be able to access up to 80% of their home’s value, depending on their mortgage balance and lender guidelines. This equity can be used to pay off higher-interest debts such as credit cards, personal loans, or other obligations. By consolidating these balances into a mortgage, the debt can often be repaid at a lower interest rate and spread over a longer period, helping simplify payments and potentially reduce overall monthly costs.
1. Add up all your debts
Make a list of all your liabilities you would like to pay out: credit cards, line of credits, car loans, student debt, etc.
Lender | Debt Amount | Interest Rate | Monthly Payments
2. Calculate how much equity you have
In order to consolidate your debt, you have to make sure you have enough home equity. Look up your property value, take 80% of your home value, subtract your total debts.
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Tip: Not sure of your property value? Start with BC Assessment
3. Understand your options and get approved!
Once you’ve estimated your available home equity, it’s time to review the mortgage options available to you. Every lender has different rates, policies, and approval criteria. I’ll analyze your situation, compare multiple lenders, and help structure a solution that consolidates your debts into one simple, manageable payment.