Using a Home Equity Loan for Debt Consolidation

Have you considered this popular option?

The largest debt you will face as a homeowner is your mortgage.  With the right approvals, you can borrow against the equity of your home with a home equity loan.

What is a Home Equity Loan?

This type of loan is slightly different to a home equity line of credit (HELOC), which is a line of revolving credit with an adjustable interest rate. A home equity loan is a one-time lump-sum loan.  Lenders are generally comfortable adding to your current low mortgage rate because they are safeguarded by the fact that your loan is secured against your home.

A Tool for Debt Consolidation

The primary bonus of a home equity loan is in its debt consolidation capabilities.

How do I get a Home Equity Loan?

The best way of going about getting a home equity loan is through a Canadian mortgage rate professional.

Advantages of a Home Equity Loan

  • Cash in your hands to pay off outstanding high interest debts. 
  • By paying off outstanding debts you will improve your credit score. 
  • The home equity loan can be spread over the lifespan of your best mortgage rate, often up to 25 years. 
    • Tax deductions are available.

Disadvantages of Home Equity Loans

  • You risk your home if you can’t pay the loan back. 
  • When you borrow against your home you lose equity or ownership in the home.

Talk to a mortgage broker today to learn if this financial product is right for you. is near you. is expanding in order to serve you better! At, we are committed to providing you with the knowledge and understanding of financial products that are right for your particular situation. Click on the map markers to learn more about the mortgage brokerage office in your community. has access to best rate mortgages from coast to coast. Why pay more when you can have the lowest mortgage rate out there? So what are you waiting for - how can help you?