Posted: 22 Jun '17

Can I Consolidate Debt Using Alberta Home Equity Loans

Debt can be stressful. If you have a lot of debt, it may be adding additional stress to your life. With that being said, did you know that your home has the potential to get you out of debt? Well, if you have owned your home for a while and have a considerable amount of equity in it, a home equity loan may be just what you need to consolidate your debt and finally bring some order into your life.

What Are Alberta Home Equity Loans?

In essence, equity is the difference between the current value of your home and the remaining balance on your mortgage. By continually paying off your mortgage every month, you are effectively increasing the equity of your home. As an Alberta resident, your home’s equity may be your biggest financial investment. By tapping into this equity (taking a home equity loan with your home as the collateral), you increasing mortgage debt at a low rate to pay off high interest unsecured debt. This is often a wise financial choice.

How Can You Consolidate Your Debt Using Alberta Home Equity Loans?

Consolidating your debt offers you an exciting end point to get out of debt. Debt consolidation means that you are re-organizing your high-interest debts into a single, low-interest balance that is manageable. In other words, a Home Equity Loan will pay your balances on other loans leaving you with only one monthly payment that is on the corresponding home equity loan.

What Are the Benefits Of Consolidating Debts Using Alberta Home Equity Loans?

If you are currently paying off multiple high-interest loans, then you can attest that it is very strenuous and expensive. Consolidating your debt using a home equity loan summarizes your debt into a single loan at a lower interest rate, effectively lowering monthly payments and culminating into huge savings on your interest charges. Additionally consolidating your debt using a home equity loan, offers you a chance to negotiate better terms if you have collections or written off debt that you need to settle.

Taking out a loan on your home’s value shouldn’t be taken lightly. Although it has its perks, you should only resort to this option if it makes financial sense. If you are having financial problems because of poor spending habits, a home equity loan will only solve the symptom which is a lot of debt, and not offer you a lasting solution unless you change your spending habits. Therefore, before taking Alberta Home Equity Loans, consider talking to a debt specialist, such as your mortgage broker.

Call Dominion Mortgage Team to find out if Alberta Home Equity Loans are a viable option to consolidate your debt.

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