Let's talk Debt
Debt can arise from many situations, whether it's unexpected life events leading to increased credit card use, falling behind on property or CRA taxes, or missing mortgage payments.
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Private mortgages are designed to help you regain control of your finances with affordable monthly payments, tailored to your situation, so you can get back on track.
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How Private Mortgage lending can consolidate debts
Using a private mortgage to pay off debts such as credit cards, property taxes, CRA taxes, or overdue mortgage payments offers several key benefits. Unlike traditional lenders, private lenders often have more flexible approval criteria, allowing you to secure funds even if your credit score has been impacted. Consolidating high-interest debts into a private mortgage can simplify your finances by reducing multiple payments into one manageable monthly payment, often at a lower interest rate. Additionally, private mortgages can be tailored to your unique financial situation, offering terms that work with your budget and helping you avoid further financial strain while protecting your assets, such as your home. This can provide relief from immediate financial pressures and give you the breathing room needed to rebuild your financial stability.
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Example:
A borrower has the following debts:
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3 credit cards totaling $25,000, with interest rates between 19% and 23%
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$10,000 in overdue property taxes at 12%
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A first mortgage of $200,000 at 6%, with a monthly payment of $1,300
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Their total monthly payments are:
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Credit cards and taxes: $1,450
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First mortgage: $1,300
Total monthly payments: $2,750 -
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Solution:
By consolidating all their debts into one new private mortgage of $235,000 at 9%, their new monthly payment would be $1,940. This gives them monthly savings of $810, while also simplifying their finances into one easy payment.
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This approach reduces stress, saves money, and helps them better manage their overall debt.