Debt Consolidation in Toronto
Roll credit cards, lines of credit and loans into one mortgage payment at a mortgage rate.
Get my quote →How does debt consolidation work in Toronto?
A debt consolidation mortgage in Toronto rolls high-interest balances such as credit cards, lines of credit and car loans into your mortgage, so one payment at a mortgage rate replaces several at 19% to 30%. Canadian lenders refinance up to 80% of a home's value. On a typical Toronto home worth about $1,050,000, that ceiling is roughly $840,000, and the equity you can actually use is that figure minus whatever you still owe.
On $60,000 of card debt costing about $1,800 a month in minimum payments, carrying that balance on a mortgage at 3.65% over 25 years costs around $304 a month, an estimated $1,496 a month of cash flow back. 8Twelve places the application across 65+ lenders, including lenders that consider bruised credit or self-employed income. Approval is always subject to qualification and lender approval.
Rates as of September 16, 2026. Figures are estimates and change with the market.
- Typical Toronto home value: about $1,050,000 (estimate).
- Refinance ceiling at 80% of value: about $840,000, less what you still owe.
- Estimated cost of $60,000 at 3.65% over 25 years: about $304 a month.
- Estimated monthly cash-flow improvement: about $1,496.
- One application placed across 65+ lenders, including alternative lenders for bruised credit.
A Toronto consolidation, line by line
- Estimated home value
- $1,050,000
- Maximum mortgage at 80% loan-to-value
- $840,000
- Usable equity
- 80% ceiling less your current balance
- Example only, assumes a 50% balance
- $315,000 available
- High-interest debt consolidated (example)
- $60,000
- Estimated mortgage cost of that balance at 3.65%
- $304 / month
- Minimum payments replaced (estimate)
- $1,800 / month
All figures are estimates based on a rounded Toronto market value and today's rate, not an offer of credit. Run your own numbers in the payment calculator, read more about debt consolidation mortgages, or see today's Ontario rates.
Best available rates shown are from 8Twelve's lender panel and are subject to your qualification, lender approval, and change without notice. On approved credit (OAC).
What 8Twelve does for Toronto homeowners
- Credit cards, store cards and lines of credit paid out at closing through your Ontario lawyer.
- One payment at a mortgage rate instead of several at card rates.
- Alternative and private lenders available when credit has taken a hit.
- Self-employed and commission income documented in ways a single bank often will not accept.
- No cost to apply, and no obligation to proceed.
More Toronto mortgage information: mortgage broker in Toronto · Ontario mortgage brokers · Debt consolidation mortgages.
Free Toronto quote
See what you qualify for in Toronto
No obligation · Takes about 3 minutes
Debt Consolidation in Toronto: common questions
How much debt can I consolidate into my mortgage in Toronto?
Most lenders refinance up to 80% of your home's value. On a typical Toronto home worth about $1,050,000, that is a maximum mortgage of $840,000. What you can consolidate is that ceiling minus your current mortgage balance, subject to qualification and lender approval.
Will consolidating debt lower my monthly payment in Toronto?
Usually, yes. Carrying $60,000 on a mortgage at 3.65% over 25 years costs roughly $304 a month, while the same balance on credit cards at about 19.99% typically demands around $1,800 in minimum payments. These are estimates based on today's rate and a typical Toronto home value, not a quote.
Do I need good credit to consolidate debt in Toronto?
Not necessarily. Bank programmes want a stronger credit profile, but 8Twelve's panel includes alternative and private lenders that weigh the equity in your Toronto home rather than the score alone. The trade-off is a higher rate and a shorter term, often used to repair credit before moving back to prime. All lending is subject to qualification and lender approval.
What does it cost to break my mortgage to consolidate in Toronto?
Breaking a fixed mortgage early triggers a prepayment penalty: three months' interest, or the interest rate differential, whichever is greater. Legal and appraisal costs are typically $1,000 to $2,000 in Ontario. We compare the penalty against the interest saved before recommending anything, and sometimes a second mortgage is cheaper than breaking.
Is a debt consolidation mortgage better than a consolidation loan in Toronto?
A mortgage is secured by your Toronto home, so the rate is a fraction of an unsecured consolidation loan's. The trade-off is that the debt is now tied to the property and amortized over a longer period, so paying it down faster keeps total interest low. We model both before you sign.
You might also be interested in
Mortgage broker in Toronto
Rates, down payment and closing costs for Toronto.
Learn moreDebt consolidation mortgages
How debt consolidation mortgages work across Canada.
Learn moreOntario Mortgage Rates
Today's best fixed and variable rates.
Learn moreBest available rate from 8Twelve's lender panel, subject to qualification and lender approval. OAC.