Debt Consolidation Guide

A primer on how to consolidate your debt to alleviate stress and save money.

Need a plan to better manage your debt?

There are many times in our life when borrowing money makes sense. To attend school, or buy a house, or complete a renovation, for example. But sometimes the borrowing adds up, the rate of interest we are charged climbs higher, and the debts outpace our ability to pay them back. The result can be stressful: an inability to get ahead of what we owe, a lack of back-up funds, and a feeling of being overwhelmed.

The good news is that there are solutions to help you consolidate your debt, and they often result in significant long-term savings and the ability to pay off your debt faster. Bringing your debts together into a single combined payment helps reduce stress and get you back on the path to financial wellness. Hub will help you restructure what you owe, and formulate a plan to repay it.

Debt consolidation solutions to help you save money and reduce stress

Nest is here to help. We’ll work with you to create a sound strategy to refinance and consolidate your debt, so you’ll have a clearer picture how much you owe and a faster route for paying it down.

If you’re feeling overwhelmed and stressed out because of multiple debts, reach out to Nest and we’ll help you through it. Debt consolidation is a viable and extremely beneficial approach, both for your financial and mental health, and we’re here for you.

Debt Consolidation FAQ

How does debt consolidation work?

Debt consolidation means you combine two or more outstanding debts, whether they are loans, a mortgage, credit card debt or something else, into one. The loan covers the funds you need to pay down several debts at the same time. The lender helps you pay off higher interest debts, and all that remains is a single mortgage to pay back, instead of many debts.

Refinancing your mortgage typically comes with a lower interest rate than a home-equity line of credit, but you pay interest on the entire mortgage amount as soon as it starts. With a home equity line of credit, also known as a HELOC, you have access to a certain total amount that you can draw from periodically, and you only pay interest on the amount you use.
How much can I qualify for?

If you refinance your mortgage with a consolidation loan, you can source up to 80 percent of the appraised value of your home, minus any amount on your outstanding mortgage.
Will debt consolidation lower my overall monthly payments?

Usually, yes. Mortgages are typically the cheapest type of borrowing. If you consolidate your debt with a home equity loan, you use your home equity as security for the lender, which results in an advantageous interest rate for you.
What are the advantages of a consolidation loan?

Having a single payment each month is usually easier for people to manage than many payments with different rates. You have fewer debts to manage, and clear repayment plan. A consolidation loan will often result in a lower interest rate, making it a smart solution when you have high-interest debt, from multiple credit cards, for example. You’ll have a structured payment schedule, like a typical mortgage, that involves paying down your principal in addition to your interest. You may even increase your monthly cash flow.
How do I pay off my debt sooner?

To pay down your debt sooner than your schedule, pay more than the minimum payment amount. Most mortgages and loans have options that enable you to pay lump sums, and increase the frequency or amount of each payment. We’ll go over all these options with you when we connect.
Does debt consolidation affect my credit score?

Yes, it should help it over time. Because you only have a single payment to make, which involves paying down your principal and interest, you’ll be lowering your debt burden. That has a positive impact on your credit score over the long term.

Don’t believe us? Check this out

Joe Harb

A pleasure to work with. They pre-approved my mortgage and checked in periodically to see how my house hunting was going. When I found the right place, Hub Mortgage Co. were quick with responses and provided information and advice wherever possible. They still continue to check in and see how things are going. Experts in the industry, you can rest easy using their services.

Sarah Richards

As a first time home buyer in the intimidating Vancouver market, I had a lot of questions and fears about the process. Hub Mortgage Co. were with me all the way, helping guide me through everything I was unsure about. They treated me like I was their #1 customer, and not just in the care and attention the paid. They also got me an amazing rate on my mortgage.

Gabby Still

Referred to us by a friend, Hub Mortgage Co. were able to help us out with our mortgage renewal. It being our first time renewing, we had some issues and also a ton of questions that Ray and Merissa took care of without hesitation. We would recommend Ray and his team to anyone who’s looking for a mortgage broker.

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