Struggling to manage multiple high-interest debts? A Debt consolidation mortgage may be your solution. Groupe Amar, a leading Quebec mortgage brokerage, offers tailored refinancing plans to help homeowners consolidate debt into a single secure mortgage payment—potentially saving money and simplifying finances.

What Is a Debt Consolidation Mortgage?

A debt consolidation mortgage involves refinancing your current home loan to include additional funds that pay off various high-interest debts like credit cards, personal loans, or car loans. By rolling all debts into one, you make a single monthly mortgage-only payment. This strategy can significantly reduce interest rates compared to unsecured debts .

Why It Makes Sense

1. Lower Interest Rates

Credit cards often carry rates of 15%–25%, while mortgages tend to be around 3%–5% By consolidating, you may save thousands in interest.

2. Simplified Payments

Rather than juggling multiple monthly dues, you focus on one, reducing stress and risk of missed deadlines .

3. Cash Flow Relief

Lower monthly mortgage payments free up cash, which you can allocate elsewhere 

4. Credit Score Improvement

Consolidation often improves your credit utilization ratio and avoids missed payments—both of which boost your score .

Potential Drawbacks

1. Prolonged Loan Period

Even with lower monthly payments, stretching the amortization increases total interest paid over time .

2. Home at Risk

Defaulting on your mortgage could mean losing your home—something you wouldn’t face with unsecured debts 

3. Upfront Costs

Refinancing carries fees—appraisal, legal, and potentially penalties for early mortgage repayment .

4. Re-borrowing Risk

Having freed up credit space, some borrowers fall back into old spending habits and re-accumulate debt .

How to Decide if It’s Right for You

Groupe Amar emphasizes that a debt consolidation mortgage should support your long-term financial health—not just reduce monthly stress. Consider these factors:

Calculate Your Equity

You must have sufficient equity (typically at least 15–20%) to convert debt into mortgage without exceeding loan-to-value thresholds .

Assess Creditworthiness

A solid credit history assures lenders of your reliability; poor credit may reduce approval chances or increase rates .

Evaluate Income Stability

Steady income is crucial. Lenders compare your monthly debt obligations to gross income to determine affordability .

Understand Long-Term Costs

Running the numbers helps—short-term savings may lead to long-term costs. For instance, a $30,000 consolidation at 4.5% over 15 years could pay ~$5,600 in interest versus ~$13,900 over five years at higher rates (ig.ca).

Groupe Amar’s Approach to Debt Consolidation Mortgages

1. Personalized Consultation

Start with a free initial meeting. Elie Amar or another expert reviews your financial goals, existing debts, home equity, and income.

2. Lender Shopping

Groupe Amar partners with over 90 lenders—including banks, credit unions, and alternative financiers—seeking the most suitable terms .

3. Tailored Financing Solutions

They develop refinancing scenarios, comparing mixed mortgages, longer amortizations vs. short-term splits, and mortgages with second tranches to balance long- and short-term goals .

4. Full Application Support

The team handles paperwork, negotiations, and adheres to Quebec’s AMF regulatory requirements. They ensure lenders disburse funds efficiently to settle current debts.

5. Ongoing Monitoring

Mortgage isn’t “set and forget.” Groupe Amar offers renewal, refinancing, and equity release advice over the loan lifecycle, helping you stay financially optimized.

Real-Life Scenario: Smart vs. Costly Consolidation

Consider a homeowner with:

• $10,000 in credit card debt @ 20%

• $10,000 personal loan @ 9%

• $10,000 auto loan @ 7%

Current monthly total: ~$434
5-year interest payment: ~$13,875

Consolidated balance: $30,000 mortgage @ 4.5% for 15 years
Monthly payment: ~$229
5-year interest payment: ~$5,587

Savings: ~$8,300 over 5 years
Trade-off: Longer amortization; less principal repaid in early years.
Net benefit lies in interest savings and simplified management—but requires disciplined budgeting.

Groupe Amar’s Tips for Responsible Consolidation

1. Avoid Re-using Credit Cards
   Limit access or close them to prevent accumulating new debt .

2. Opt for a Split Mortgage Structure
   One part long-term (20–25 years) and another shorter-term (5–7 years) accelerates paydown while keeping rates low .

3. Build a Repayment Plan
   Use savings from monthly reduction to pay down principal faster, minimizing total interest.

4. Maintain Open Communication
   Be aware of fees—appraisal, legal, discharge penalties—and consult your broker on mitigation strategies .

When a Consolidation Mortgage Isn’t Best

• You lack equity or have minimal remaining term on your current mortgage.

• Your spending isn’t disciplined—risking future debt accumulation.

• You plan to sell or refinance property soon; upfront costs may outweigh benefits.

• You prefer unsecured consolidation methods (personal loan, line of credit).

Groupe Amar helps you weigh these alternatives responsibly.

Why Work With Groupe Amar?

• Deep Expertise: Licensed Quebec mortgage specialists well-versed in AMF/OACIQ rules and regional financing options.

• Extensive Lender Network: Access to specialized programs often unavailable directly.

• Personalized Support: Tailored advice on rate splits, amortization, and equity utilization.

• Long-Term Partnership: Guidance continues beyond initial closing—covering renewals, refinancing, and equity access.

Summary Table

A Debt consolidation mortgage can be a powerful financial tool when used wisely:

• It reduces interest costs, simplifies payments, and can boost your credit.

• But it also extends your repayment timeline and puts your home at stake.

• Success depends on financial discipline, lender fit, and effective planning—all areas where Groupe Amar excels.

If you're carrying multiple high-interest obligations—credit card balances, personal or auto loans—now might be the time to explore a bespoke consolidation plan with a trusted mortgage specialist. Contact Groupe Amar for a free consultation and see if a debt consolidation mortgage fits your financial goals.