High interest debt on credit cards, auto loans, or other consumer loans can be difficult to pay off and may create a barrier to your financial goals. However, if you're a homeowner, you have additional options to help you manage your debt, including a debt consolidation mortgage and home equity loan or line of credit.
Refinance with a debt consolidation mortgage
As a homeowner, one way to start managing some of your higher-interest debt is to refinance your existing mortgage with a debt consolidation mortgage. For example, the CIBC Home Power Mortgage® allows you to borrow additional money on your mortgage so you can consolidate your debts into one simple payment. That way you can easily budget with a structured payment plan and an assured pay-off date.
Find a mortgage that's right for you using our mortgage product selector.
Debt consolidation home equity loan or line of credit
Homeowners who are looking to consolidate their debts have the option of using their home equity to secure a loan or line of credit. A home equity loan or line of credit allows you to obtain a lower interest rate and a higher credit limit by using the equity you've built in your home as security. By consolidating your debts into a home equity loan or line of credit, you'll have the convenience of one consolidated payment rather than having several bills from different creditors. This makes bill payments more manageable and the rate is usually lower, helping you pay off your debts sooner. With a home equity line of credit such as the CIBC Home Power Plan®, you'll enjoy additional benefits such as making interest payments only on the funds you use, not your total credit limit, and having ongoing access to funds up to your authorized credit limit.
Find out more about using your home equity.
Benefits of debt consolidation mortgages and debt consolidation home equity loans or lines of credit
- Interest rates on mortgages and home equity loans or lines of credit are often much lower than those on credit cards and consumer loans
- Making a single payment to your debt consolidation mortgage or home equity loan or line of credit is much easier than making multiple payments to credit cards and other lenders
Learn more about consolidating your debt with the CIBC Home Power Mortgage or CIBC Home Power Plan.