Debt consolidation
Roll your debts into your mortgage and see what it costs
Moving credit cards and loans into your mortgage can cut what you pay each month by $1,000 or more. It can also raise the total interest you pay, and it turns unsecured debt into debt secured by your home. We'll show you the monthly payment and the total interest before you decide.
No credit check, and no commitment.
A worked consolidation
Updated earlier$55,000 of consumer debt, rolled into a $300,000 mortgage on a $500,000 home.
- Monthly payments today
- $3,307/mo
- Mortgage $1,827 plus $1,480 of debt payments.
- Monthly payment after
- $2,180/mo
- One payment, at mortgage rates, over the remaining amortization.
- Freed every month
- $1,127/mo
- What you do with this money decides whether consolidating saves you money overall.Use my numbers
- Change in total interest
- +$8,148
- Over the full 20 years amortization, at one unchanged rate on both sides.
Rates as of September 21, 2026 at 9:00 a.m. MT, subject to change without notice. O.A.C. Not an offer of credit, a rate hold or a pre-approval. Daniel De Sousa, Mortgage Associate, Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a RECA-licensed mortgage brokerage.
- Up to 80% of your home's valueThe federal limit on a conventional refinance.
- Monthly and total costWe show the monthly saving and the change in total interest every time.
- We'll tell you if it doesn't make senseSometimes paying the debt down as it is costs less.
Is debt consolidation right for you?
Tick anything that fits. With 2 or more, it's worth running the numbers.
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How debt consolidation works
A consolidation is a refinance with a specific purpose. Your new mortgage is large enough to pay off your consumer debts at closing, so several payments at 8% to 22% become one payment at a mortgage rate. The limit is the same as any refinance, 80% of appraised value, and the whole balance has to fit under it.
The monthly saving is usually large. $55,000 of debt costing $1,480 a month becomes $353 a month when it’s part of your mortgage, because the debt is spread over a 20-year amortization at a lower rate.
The longer timeline has a cost. A short, high-rate debt spread over a long, low-rate amortization can cost more in total, and the debt is now secured by your home. So we show you both figures. After you consolidate, the most important step is to keep paying the money you’ve freed up against the mortgage.
When consolidating works best
Consolidating works best when your home has enough equity and you’re ready to close the cards and lines you pay off, so the balances don’t build up again.
We’ll show you the monthly saving and the total cost side by side before you decide.
The rules
Rules for consolidating debt into your mortgage
The first 3 are lender rules. The last 2 are our advice.
Loan-to-value ceiling
Run your numbers80% of appraised value, across the new mortgage and everything you’re rolling in. On the worked example, that leaves $97,000 of consolidation room.
Default insurance isn't available on a refinance, so you can't go above 80%.
Stress test
Run the stress testApplies in full. A consolidation is a refinance, and a refinance is a new mortgage.
Paying off consumer debts usually improves your ratios.
Prepayment penalty
Estimate your penaltyYes, if you break mid-term: 3 months’ interest on a variable, or the greater of that and the interest rate differential on a fixed.
None at maturity, so consolidating at renewal is much cheaper.
Debts cheaper than the mortgage
Leave them out. Keep a 0% dealer loan or a low-rate student line where it is. Rolling it in costs you money.
Our calculator flags these automatically so they're not rolled in by mistake.
What you do afterwards
What prepaying is worthKeep paying the freed amount against the mortgage. On the worked example that clears the consolidated portion in 3 years, 7 months instead of 20 years.
Without this step, you get a lower payment but pay more interest over time.
How we calculate your qualifying rate. Under OSFI Guideline B-20, lenders qualify you at the higher of your contract rate plus 2 percentage points, or 5.25% (the minimum qualifying rate). Since November 21, 2024, OSFI no longer prescribes this test for eligible uninsured straight switches at renewal between federally regulated lenders, with no increase in the loan amount or remaining amortization. Lenders still assess creditworthiness. New purchases and refinances generally require qualification. Provincially regulated credit unions (including Alberta credit unions) aren’t bound by Guideline B-20 and set their own qualifying policies, which is one reason a broker can sometimes place a file a bank cannot. Rules current as of September 21, 2026. Source: OSFI Guideline B-20.
Before and after
Monthly payments before and after consolidating
Our calculator uses the same rate on both sides, so the comparison shows only the effect of consolidating. A rate change isn't mixed in.
| Debt | Balance | Rate | Payment now | Clears in |
|---|---|---|---|---|
| Mortgage | $300,000 | 4.09% | $1,827 | 20 years |
| Credit cards | $22,000 | 19.99% | $660 | 4 years, 2 months |
| Car loan | $18,000 | 8.50% | $520 | 3 years, 4 months |
| Line of credit | $15,000 | 11.50% | $300 | 5 years, 9 months |
| Total today | $355,000 | — | $3,307 | — |
| After consolidating | $358,000 | 4.09% | $2,180 | 20 years |
Freed every month
$1,127/mo
$3,307 of outflow becomes $2,180.
Total interest, if you change nothing else
$8,148increase
$157,030 becomes $165,178 over the full amortization.
If you keep paying the freed money
3 years, 7 months
The consolidated portion clears in that time instead of 20 years, costing $4,323 instead of $26,761.
- Home value
- $500,000
- Existing mortgage
- $300,000
- Rate, both sides
- 4.09%
- Amortization
- 20 years
- Refinance costs
- $3,000
- New loan-to-value
- 71.6%
- Compounding
- Semi-annual (fixed)
This is an illustration, not an offer. It uses one published rate on both sides so the comparison is fair. Your own balance, rate, remaining amortization and debts will differ. Run it on your numbers.
Your options
Debt consolidation vs HELOC vs paying it down
The right one depends on how much you owe and how fast you can pay it off.
Consolidate into the mortgage
Roll the debts in and make one amortizing payment.
Best for a large, known balance you want gone on a schedule
Run the break-evenIt has a lower rate than the other two, and the payment is fixed and amortizes, so the debt gets paid off on schedule. It breaks your existing mortgage, so a penalty applies mid-term.
HELOC
Revolving line to 65% standalone, 80% combined, drawn as needed.
Best for a balance you expect to clear quickly
Cheaper than cards, more expensive than a mortgage, and variable. The risk is that interest-only payments on a revolving line never reduce the balance, so the debt can stay with you for good. HELOC rules and limits.
Pay it down as it stands
Pay off the highest rate first and leave the mortgage alone.
Best for a balance you can clear in 2 or 3 years
On the worked example the debts cost $18,613 in interest if you keep making today’s payments. That’s less than the same balance costs on a 20-year mortgage. If cash flow isn’t the problem, this is often cheaper, and we’ll tell you.
Today's rates
Today's debt consolidation refinance rates
A refinance is always uninsured, so these are uninsured rates, the same ones any refinance is priced against.
Effective September 21, 2026 at 9:00 a.m. MT
| Term | Rate | APR | Payment per $100,000 | Who it’s for | Get this rate |
|---|---|---|---|---|---|
| 5-year fixed | 4.09% | 4.14% | $531/mo | Uninsured | Hold this rate |
| 3-year fixed | 4.04% | 4.09% | $528/mo | Uninsured | Hold this rate |
| 5-year variablePrime − 0.25% | 4.20% | 4.25% | $537/mo | Uninsured | Hold this rate |
| HELOCPrime + 1.50% | 5.95% | 5.95% | — | Uninsured | Hold this rate |
Payment per $100,000 assumes a 25-year amortization, monthly payments and semi-annual compounding. We calculate it from the rate in the same row. Run it on your own number.
Rates shown are current as of September 21, 2026 at 9:00 a.m. MT and are subject to change without notice. Rates are available on approved credit (O.A.C.) only, are subject to the terms and conditions of the applicable lender, and may vary based on your credit history, income, down payment or equity, loan-to-value, property type and location, occupancy, amortization, and whether the mortgage is insured, insurable or uninsured.
Annual percentage rates (APR) shown assume a mortgage amount of $500,000, an amortization of 25 years with monthly payments, and include no lender or brokerage fees. Fixed rates are compounded semi-annually, not in advance, as required under section 6 of the federal Interest Act; variable rates are compounded monthly. Payment figures exclude property taxes, heating, condominium fees and default insurance premiums unless stated. Insured rates require mortgage default insurance and are available only on qualifying transactions.
Rates may contain errors or omissions and do not constitute an offer of credit, a rate hold or a pre-approval. Not all applicants will qualify. Contact Daniel De Sousa, Mortgage Associate, to confirm the rate available to you. Daniel De Sousa is licensed by the Real Estate Council of Alberta (RECA) and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage.
The HELOC row is here for comparison only. It’s variable, it moves with prime, and it doesn’t amortize unless you set up payments that do. It costs much less than a card at 19%. Compared with an amortizing mortgage, it costs more and doesn’t force the balance down.
Calculators
Run your own numbers
Free, with no email required. They use Canadian rules: semi-annual compounding, the down payment ladder and the stress test.
Debt consolidation
Before and after payment, the total-interest figure both ways, and which debts to leave out.
Refinance break-even
The break-even: interest saved against the penalty plus the closing costs.
Mortgage penalty (IRD)
What breaking mid-term costs, by IRD and by 3 months' interest.
HELOC
The revolving option, with the room you have.
Prepayment
What paying the freed cash flow against the mortgage is worth, in years and dollars.
Payment shock
If a renewal is also coming, what the payment becomes before you plan around it.
Daniel De Sousa, Mortgage Associate with Indi Mortgage
Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage · RECA licensed · 4990 92 Ave NW #105, Edmonton. Verify our licence on RECA ProCheck(opens in a new tab)
Client reviews posted here are unedited, and each one names who handled the file. We don’t pay for reviews or filter them.
Daniel De Sousa
Mortgage Associate, Indi Mortgage
Handles consolidation refinances to 80% of value, files with a CRA balance or a discharged consumer proposal, debt brought in from a higher-cost province. Licensed by the Real Estate Council of Alberta and registered with Indi Mortgage, working out of the Edmonton office at 4990 92 Ave NW #105. Verify our licence on RECA ProCheck(opens in a new tab)
Daniel De Sousa, Mortgage Associate, is licensed by the Real Estate Council of Alberta (RECA) and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a mortgage brokerage licensed by RECA. Verify our licence on RECA ProCheck(opens in a new tab)
Monday–Friday, 9:00 a.m.–5:00 p.m. Mountain Time. Closed Saturday and Sunday. Book 15 minutes if that’s easier.
Debt consolidation questions
Will consolidating hurt my credit score?
It can move your score either way for a few months. There’s one credit check, and the accounts you pay off are closed. After that, clearing card balances usually helps a lot. Credit utilization is one of the largest parts of your score, and maxed-out cards hurt it most.
Does my total interest go up when I consolidate?
On the worked example above, yes, by $8,148 over the full amortization, because a short, high-rate debt is spread over 20 low-rate years. That changes if you keep paying the freed-up money against the mortgage. Doing that clears the consolidated portion in 3 years, 7 months and costs $4,323 instead of $26,761.
Can I consolidate if I've missed payments?
Often, yes. A missed payment doesn’t rule you out, and it’s a good reason to look at consolidating. It may mean a lender that charges a higher rate. If so, we’ll show you the extra cost in dollars and a plan to get back to an A-lender.
What about a CRA balance?
Income tax owing can usually be consolidated, and often should be, because CRA can register a lien that ranks ahead of your mortgage. Tell us about it on day one. It isn’t a reason to decline the file, but finding it at the lawyer’s office can make the deal fall apart.
Is it better to wait for my renewal?
Usually, if your maturity date is close. Consolidating at maturity means no prepayment penalty, and the penalty can be the largest single cost. If you’re more than a year out and your cash flow is tight, the penalty is often worth paying. Our break-even calculator shows you which way it goes. See the renewal page.
Which debts should I leave out?
Anything already cheaper than your mortgage, like a 0% dealer loan, a low-rate student line or an employer loan. Rolling those in costs you money. Our calculator flags them automatically so you can leave them out.
Related mortgages
See your payment and total interest
Fill in 3 fields. Daniel, a licensed mortgage associate, will get back to you with the new payment, the change in total interest, and whether consolidating is cheaper for you.
- We flag the debts that are already cheaper than your mortgage and leave them out.
- You'll see the total interest both ways, as well as the lower payment.
- If waiting for your renewal saves you the penalty, we'll tell you to wait.
Prefer to talk? (825) 797-5417 · Mon–Fri 9–5 MT
How we get paid. Daniel De Sousa arranges mortgages through Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a licensed mortgage brokerage, not a lender. The brokerage and Daniel are compensated by the lender you choose when your mortgage funds (paid by the lender, not by you). Compensation varies by lender and product and doesn’t change the rate you’re quoted. A lender fee or brokerage fee is uncommon and happens mainly on alternative or private lending. If one applies to your file, we’ll disclose the exact amount in writing before you sign anything. We’ll tell you if any product we recommend pays us more than an alternative we considered. Before we start work on your file, you’ll receive a written service agreement setting out our services, our compensation and any fee that applies to you.
Find out what one payment would cost you
It takes about two minutes and there's no credit check. You'll see the monthly payment and the total interest. Mon–Fri 9–5 MT, from the Edmonton office.
No credit check, and no commitment.