When you’re looking at consolidating debt, this is the most important question. And, it deserves an honest answer: consolidating debt into your mortgage saves money for many homeowners, but not automatically and not for everyone. Whether it works for you comes down to a straightforward comparison. Here’s how to think about it.
The savings come from the gap between interest rates. Credit cards in Canada commonly charge around 20% or more, and unsecured lines of credit sit well above mortgage rates. When you move that debt to your mortgage rate, far less of each payment is consumed by interest — so more goes toward the balance, and your monthly outflow typically drops.
For a homeowner carrying several thousand dollars in credit card debt, the difference in interest alone can be substantial over time.
An honest savings calculation includes the costs of consolidating: a possible appraisal fee, legal fees, and — if you break your mortgage mid-term — a prepayment penalty. The question is whether your interest savings outweigh these costs, and how quickly the savings pay them back.
When the high-interest debt is significant, the interest savings often cover the costs quickly. When the debt is small or your existing rate is very competitive, the math can be closer. That’s why we run the actual numbers rather than assuming.
The clearest way to evaluate consolidation is to look at two pictures side by side: your total monthly payments and total interest now, versus after consolidating with all costs included. If the after picture lowers your monthly outflow and reduces total interest — and the upfront costs pay for themselves in a reasonable window — consolidation is saving you money.
How do I know my exact savings?
We compare your current debts and payments against a consolidated structure with all costs included. You’ll see real before-and-after numbers, not estimates.
Could consolidating cost me more in the long run?
It can, if a lower monthly payment stretches the debt over a much longer period. We help you balance monthly relief against total interest so you choose with full clarity.
