The penalty can range from three months’ interest with a variable mortgage to a more significant interest rate differential penalty with a fixed mortgage. It allows you to access up to 80% of your home’s value, minus whatever outstanding mortgage balance you may currently have.
All HELOCs are variable mortgage rates and come with a slightly higher interest rate than a traditional 5-year variable mortgage rate.
You can then apply the extra money you’ve made available toward your debt freedom and retirement saving.
1 The above monthly payment does not include taxes and insurance.
Debt consolidation is the process of merging outstanding debts such as multiple credit card balances or personal loans into one single loan.This allows you to determine when you want to pay off the loan with one fixed monthly payment rather than confusing multiple payments at different rates. In a lot of cases, you can also reduce your interest rates, especially in the case of holding high-interest credit cards.One slip and a forgotten payment can end up costing your wallet and credit score. You could spend decades trying to pay these back with minimum monthly payments.Consolidating debt to a single, automated, monthly payment simplifies your borrowing process and allows you to focus on what matters. Debt consolidation saves you time, money and hassle.In Canada consolidation loans are a way to combine several smaller loans into one single monthly payment.