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Debt Consolidation Calculator

Compare your monthly payment and full repayment cost before using home equity to consolidate debt.

Your debts

Current repayment

New secured borrowing

Paid separately at closing, rather than added to this loan.

Compounding assumptions

Use the convention in your loan agreement. Monthly compounding may suit credit-card debt.

Estimated monthly payment reduction

$600/ month

Compare the full cost before deciding.

Current payment$1,042
New payment$443
Current total interest
$22,528
New total interest and fees
$14,112
Repayment period
5 to 10 years

Lower full-period cost

$8,416

Less interest and fees over the full repayment periods entered.

Review my debt options

Estimates only, not financial advice or approval. Assumes equal monthly payments, fixed rates and the same debt balance over each repayment period. Credit-card minimum payments and new borrowing are not modelled. Fees are paid separately. Securing debt against your home puts it at risk if you cannot repay.

See the full debt picture

A smaller payment is one part of the comparison. Look at the whole cost.

A lower rate can create monthly breathing room. Compare the new payment with what you pay now.

Illustrative $40,000 loan. Semiannual compounding, fixed rates.

A $40,000 debt at 19.99% over five years is compared with 6% over ten years. The new payment bar shrinks while the monthly reduction grows.

Read the debt consolidation guidance

Keep planning

What will refinancing change?Compare your current mortgage with a new rate and balance.What will my mortgage payment be?See how a mortgage fits your monthly budget.

Put your comparison in context.

A Mortio mortgage professional can review your equity, fees and repayment options.

Review my debt options
FAQ

Frequently Asked Questions

Understand the repayment comparison and the risks of secured borrowing.

Does a lower monthly payment mean I save money?
Not necessarily. Extending repayment can lower the monthly payment while increasing total interest. Compare the full-period interest and fees as well as the monthly difference.
What does this calculator compare?
The same debt balance repaid in equal monthly payments under two rates and repayment periods. It holds rates constant and treats fees as a separate closing cost. It does not model credit-card minimum payments, new borrowing or changing rates.
Which fees should I include?
Include estimated legal fees, setup costs, appraisal charges and any mortgage prepayment penalty that applies. Ask your lender for the actual payout and charges. This calculator assumes those fees are paid separately, rather than financed.
What is the risk of using home equity?
Secured borrowing uses your home as collateral. You could lose your home if you cannot repay. A lower interest rate does not remove this risk, so review the payment, repayment period and alternatives before proceeding.
Which compounding option should I choose?
Use the convention in your loan agreement. The default semiannual convention suits a common Canadian mortgage calculation; monthly may suit your existing debts. Your lender can confirm the right convention and payment.
Does this estimate mean I qualify?
No. A lender reviews your income, credit, debts, property and equity. The calculator compares repayment scenarios and does not determine eligibility or provide a lender quote.
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