Consolidate your debt into a conventional mortgage,
home equity loan or line of credit

Why consolidate debt into a mortgage?

Refinancing your existing mortgage into a consolidation loan combines your debts into one payment. This is a great option if you have high-interest loans and you're only paying the interest rather than the principal.
 

When you refinance, you can get up to a maximum of 80% of the appraised value of your home minus the remaining mortgage.
 

Interest rates on a debt consolidation mortgage might be different from your existing mortgage. If you change your mortgage, the terms of your original agreement will likely change.
 

Debt consolidation mortgages come with a structured payment plan and an assured pay-off date. Payment schedules vary: weekly, biweekly, semi-monthly or monthly over a negotiated term. Refinancing fees apply, such as appraisals, title search, title insurance and legal fees.
 

Do your homework before committing to a debt consolidation mortgage. Know the benefits and drawbacks. You might pay a prepayment chargeOpens a popup. depending on your mortgage option.


Benefits of a debt consolidation mortgage:

• Borrow additional funds from a new mortgage
• Lower interest rates
• Lower monthly payments

Learn about the CIBC Home Power® Mortgage and the CIBC Home Power Plan Borrowing Solution.

Why consolidate debt into a home equity loan?

Home equity is the difference between the value of your home and the remaining mortgage balance. Your home equity increases as you pay off your mortgage and as your home goes up in value.
 

You can use your home equity to get a loan or line of credit, which, like a debt consolidation mortgage, combines your debts into one payment. 

For home equity loans, the lender uses your home as security. Interest rates on equity lines of credit are lower compared to other loans. You get a higher credit limit, which is useful on higher interest loans. On a home equity line of credit (HELOC), you can get a maximum of 65% of your home's appraised value. The more equity you have in your home, the more money you can borrow.

Generally, you pay interest on the money you use, not on your total credit limit. Interest rates fluctuate depending on market conditions, so your payments could go up. As long as you pay the minimum payments, you can make multiple payments without penalty. Fees apply, such as appraisals, title search, title insurance and legal fees.

Do your homework. Calculate your home equity and how much you can borrow with our home equity calculator.

Benefits of a debt consolidation home equity loan or line of credit:

• Flexible repayment options
• Lower interest rate
• Lower monthly payments
• No prepayment charge
• Only pay interest on used funds 
• Pay off debt quicker
• Possible tax deductions
• Reusable credit
  

Learn about the CIBC Home Power Plan Line of Credit.