Consolidation Mortgages — Refinancing to Consolidate (Thrive Mortgage)

Reduce financial stress by consolidating your debts.
If your credit cards and loan payments feel overwhelming, refinancing your mortgage to consolidate them might give you breathing room and improve control of your finances.

What Is a Consolidation Mortgage?

A consolidation mortgage takes your existing debts (like credit cards and loans) and rolls them into your mortgage. Instead of making multiple payments, you make one single monthly mortgage payment at a typically lower interest rate, which can improve your cash flow and overall financial situation.

Benefits of Consolidating Your Debt

1. Simplified Payments

You combine all your debts into one payment — easier to manage and less stressful than handling many bills.

2. Lower Interest Costs

Mortgage interest rates are usually much lower than unsecured debt (credit cards, personal loans), so consolidation can save you money in interest over time.

3. Better Cash Flow

Lower monthly payments free up money for savings, emergency funds, or other goals.

4. Potential Credit Improvement

If your credit card balances drop (and you use cards responsibly), your credit score can improve because your credit utilization ratio lowers.

FAQ: Common Questions Answered

Do I need to consider an unsecured mortgage instead?

Unsecured consolidation loans (from banks) typically have higher interest rates and shorter amortization than a mortgage. This often results in little to no relief on monthly cash flow. Refinancing into a mortgage usually offers better terms.

After consolidating, should I cancel my credit cards?

No. You should keep your credit cards open and use them responsibly — keeping them active helps your credit score.

Will consolidating debts improve my credit rating?

Yes. When you reduce the balances on your credit facilities and pay them down consistently, your credit rating can improve significantly within a few months.

Should I consolidate all my debts?

Not always. If you have 0% financing deals or student loans with tax-deductible interest, you might want to keep those separate.

Can I borrow extra money above what I’m consolidating?

Yes! You can include extra funds for things like a vacation, a new car, home repairs, or even investing in your TFSA/RRSP while refinancing. Planning for the future now can be better than taking out new credit later.

Additional Costs to Consider

The main potential cost is an appraisal fee (usually $300–$500). Thrive Mortgage may first try an online valuation for a lower fee (~$99) that many lenders accept.

If a full appraisal is needed, legal fees or any lender breakage fees can be rolled into your refinance so you’re not out of pocket.

Next Steps

If you’re interested in refinancing to consolidate your debts, I’m here to take you through the process from start to finish.