Toronto Debt Consolidation Loan
“Toronto Debt Consolidation Loans Are Typically Institutional or Private Residential Mortgages”
A Toronto Debt consolidation loan will most likely come from refinancing an existing mortgage, securing an additional mortgage, or placing a first mortgage on a piece of unencumbered residential real estate.
Most consumer debt consolidation is done through mortgages due to the fact that consolidation speaks to new higher loan value and in many cases is accompanied by strained credit or repayment.
With higher loan amounts comes a greater demand for security which is where mortgage financing comes in. And with solid repayment and credit, bank or institutional refinancing can be secured for up to 80% of the appraised value of the property through an insured mortgage.
For more challenging credit, lower financing amounts can be secured by what we would call B institutional lenders and if credit or repayment is further limiting, private mortgage financing can be obtained.
Most Toronto debt consolidation loans involving mortgage financing will require a new mortgage to replace the existing mortgage plus other debts you would like to consolidate into the new mortgage. One of the keys to this process is to make sure that you determine, if possible, the best point in time to perform the consolidation in order to minimize any prepayment penalties you may incur to payout the first mortgage.
Its also going to be important to weigh the net cost benefit between redoing a first mortgage or getting a second mortgage and if the second charge position should be a term loan or line of credit.
The best way to make sure you’re taking a debt consolidation approach that is going to benefit you going forward and can be put into place for the least amount of cost is to work with an experienced Toronto mortgage broker or mortgage specialist.
For most bank and institutional mortgage deals, the cost of the broker is paid by the lender, so you get all the value of their service for no cost. If you credit is constrained, you may need to acquire a private mortgage which will likely require the assistance of a mortgage broker to gain access to a relevant private mortgage lender.
If you need a Toronto debt consolidation loan or are looking into different debt consolidation strategies, I suggest you give me a call so I can quickly assess your situation and provide you with relevant Toronto debt consolidation loan options to consider.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel