What homeowners should weigh before consolidating debt into a mortgage
Even so, if that balance is stretched across the remaining amortization period of a mortgage, the total interest paid over time can exceed what an accelerated repayment of the original debt would have cost.
The second is choosing the right debts. Credit card balances, which can carry rates between 10% and 21% or more, are typically the strongest candidates. Car loans or leases, especially those tied to tax-deductible business expenses, are generally not a good fit.
Lauren van den Berg, President and CEO of Mortgage Professionals Canada, says borrowers are increasingly seeking expert advice, lender access, and personalized support, with broker market share rising to 38% in 2026.https://t.co/waGqZwdnHH
— Canadian Mortgage Professional Magazine (@CMPmagazine) July 27, 2026
The third is timing and cost. Homeowners who consolidate at renewal avoid prepayment penalties; those who refinance before the term ends may face a prepayment penalty as well as legal, appraisal, and administrative fees.
Zlatkin advises calculating those costs directly against the projected savings before proceeding.
The fourth is avoiding a debt rebound. Without a plan to prevent new balances from building, consolidation simply defers the problem.
