Where Can I Find the Best Debt Consolidation Loan in Canada

Nobody likes being in debt, but for many households, debt is a part of life. There are bills to pay, cars to fix, medical emergencies, and children to take care of. You name it, and there’s a bill for it. Even if you’re committed to saving your money or typically have a healthy budget, unexpected circumstances are often a root cause of accumulated debts.

The unfortunate reality is that if you don’t add another cent to the debt, it will keep growing because of the interest rate on each bill’s monthly payment. But don’t let visions of high-interest credit cards and out-of-control debt scare you – there is a solution.

When high-interest debts are trying to get the better of your household, a mortgage debt consolidation could be the answer. With the right mortgage debt consolidation loan in Canada, you can lower your monthly payment on your credit card and secure a reduced interest rate.

Access capital quickly by using the home equity you’ve earned with the help of a mortgage brokerage like Burke Financial. Our financial experts use our network of private lenders and investors to help homeowners make the most of their home equity by connecting them with a mortgage product.

What is Debt Consolidation in Canada?

If you’re looking for immediate financial relief, you likely have multiple debts owing to several parties, each with different interest rates. It’s doubtful that you will be able to pay them all back in a reasonable amount of time, or even at all. Debt consolidation can help you, and it can help your creditors.

Debt consolidation in Canada is when you consolidate all of your debts to separate creditors so that you can make one consistent monthly payment to pay down your debts.

A lending company – sometimes a bank, a friend, or an alternative lender – will lend you money to pay off all of your debts in one shot. The new lender will package everything you owe into one single debt and then offer you lower interest rates than previously paid. In this case, everybody wins. Homeowners across Canada have often found it beneficial to work closely with a mortgage brokerage to ensure they’re getting the best debt consolidation loans.

Debt Consolidation Mortgages

Homeowners in Canada look to debt consolidation mortgages as their leading option to streamline their finances and tackle household debt. A debt consolidation mortgage is a long-term loan given to homeowners balancing multiple creditors.

This type of loan benefits borrowers who are paying off high-interest debts and cannot make a significant dent in their payments. A debt consolidation mortgage offers homeowners a straight-forward payment plan and potentially lower interest rates than their current mortgage. If you choose to refinance into a debt consolidation loan, you could access up to 85 percent of your home’s current value.

There are several factors to consider when deciding on taking out a mortgage for debt consolidation or any home equity loan type. Working with a mortgage brokerage like Burke Financial puts you in a partnership position with an experienced financial team. Their award-winning brokers negotiate interest rates and contracts with private lenders on your behalf. They have the resources and know-how to ensure even the most challenging applications are improved.

Canadians’ Financial Struggles

It may feel like debt relief is impossible, or your credit score will never improve. If you’re struggling with multiple credit card payments, you may be worried you’ll never catch up. If these feelings sound familiar, you’re not alone.

Statistics Canada recently showed that household debt has been growing faster than income, with Canadians owing roughly $1.79 for every dollar of household disposable income in the fourth quarter of this year. Rising interest rates or falling asset prices are significant contributors to the average Canadian’s financial struggles. 

Households across the country are trying to balance their finances and their families simultaneously. Even when the best preventative measures are taken, unexpected medical expenses or major home repairs can lead homeowners down a slippery slope of debt. In particular, Canadians living in metropolitan cities experience a higher cost of living, which can drastically impact their borrowing needs. Some borrowers look to a credit line or second mortgage loans for relief, but debt consolidation remains a priority.

No matter where you live in Canada, there are resources at your disposal to help you find your financial footing. It’s essential to know your debt-relief options so that you can take the necessary steps toward a healthier future. If you’re struggling to pay any number of bills, from credit card debt to student loans, debt consolidation can be a lifeline.

The Benefits of Debt Consolidation Loans

Finding the best debt consolidation loans in Canada is no small task, but the benefits are undeniable. Not only do you get to refinance your debts so they can be paid down over time, but the creditors you’re facing can stop chasing you to pay them back since they will be paid off in full.

Once your broker matches you with the appropriate lender, you’ll now be paying your new lender a new monthly payment on your newly consolidated debt. This is what they get out of the deal. The best consolidation loans are the ones that help the borrower strengthen their finances while offering fair benefits to the lender.

By taking out a debt consolidation loan, you can embrace the benefits:

  • Combine all your debts into one low payment
  • Improve your credit score by paying off high-interest trade lines
  • Pay a lower interest rate on your monthly payments

Debt consolidation can improve your financial situation quickly and efficiently. After all, who needs out-of-control credit card balances? Who wants to barely get by paying the minimum balance on credit card debt? Canadians deserve to have the strongest financial footing, whether they are looking to build credit or utilize equity loans in Ontario for relief.

Working with a mortgage brokerage like Burke Financial is the first towards finding the best debt consolidation loans available. Once we help you find the right lender, one that structures your debt consolidation loan in a way that makes sense for you, you’re on your way!

Get Your Finances Back on Track Without Banks

A debt consolidation loan can open several doors for homeowners across the country. In Canada and worldwide, the lowest interest rates you can pay on debt consolidation loans usually come from banks. However, not all banks will give you a debt consolidation loan if they feel you are too risky of an investment. This puts many Canadians in an unnecessary and problematic position and increases the likelihood they’ll only accumulate more debt.

If you’ve been rejected for a traditional lender loan, this can occur due to several circumstances. This rejection often stems from a low credit score, an uncertain employment outlook, the amount of collateral you can offer, the sheer size of your unpaid debt, or other factors. Homeowners throughout Canada are struggling to find their financial footing. If your credit score is below 650, it may feel like your options are limited.

If your bank rejects your request for a debt consolidation loan, you can reach out to an alternative lender!

The Advantages of Debt Consolidation with Alternative Lenders

The most significant advantage of using an alternative lender is that they are not like the banks. They offer convenient resources to homeowners struggling to access the capital they need to eliminate their debts.

Alternative lenders may charge higher interest rates for their services because of the increased risk of lending to someone in debt. Still, if you are committed to paying off the debt in a responsible way, they have the experience to tackle your financial issues successfully. Alternative lenders can offer homeowners undiscovered hope, even if your credit score falls below the 650 average.

Burke Financial will take your call, consider all the factors in play, and then work with you to structure a realistic plan designed to succeed. Our brokers specialize in finding the best consolidation loans in Ontario for our clients. Our expansive network of private lenders, MICs, investors, and banks is a valuable resource for homeowners. We’ll help you find a lender that can meet your financial goals and create a plan to consolidate your debts efficiently. Your particular situation will determine the length of your new monthly payments.

The best debt consolidation resources are ones that can get you the debt relief you’ve been looking for and help you avoid those aggravating collection calls. Through these loans, you’re taking steps to simplify your life by creating one easy monthly payment.

If you live in Canada and need help to consolidate your debts, we will put together a plan for a debt consolidation loan tailored specifically to you.

Partner with an award-winning mortgage brokerage like Burke Financial, and you’ll have access to the professional advice you need. We will help you find the best debt consolidation loans in Canada and even help you build a monthly budget to get you there!

Contact Burke Financial Today

Partner with our experienced brokerage to ensure you’re making the safest choice and choose the right lender. We have helpful strategies and a network of lenders at our fingertips.

Contact Burke Financial today for debt consolidation loans and expertise that works. We will match you with one of our expert brokers, one that cares about your financial future and has the best debt consolidation resources on the market. If you’ve been turned away from banks in the past, allow Burke Financial to open new doors.

Debt can feel overwhelming, but it doesn’t have to be. Simply fill out a simple form or give us a call and get approved today. Burke Financial is here to help.