Current debt profile
Balances, annual rates, and monthly payments are aggregated to calculate total debt, weighted rate, current cash outflow, and approximate annual interest.
Mortgage debt strategy
Debt Consolidation Calculator Canada
Add multiple debts and compare current payments, weighted rates, estimated payoff interest, home-equity room, proposed mortgage LTV, transaction costs, and long-run interest.
Dynamic debt listWeighted debt rateMortgage LTV testCash-flow comparison
Calculation inputs
Compare cash flow with total debt cost
Add each debt, test the available equity, and compare current payments with a proposed mortgage consolidation.
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Debts to consolidate
Enter the actual balance, rate, and current payment for each debt.
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New mortgage and transaction assumptions
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How the calculation works
Understand the formula before relying on the result
Equity capacity
Property value is multiplied by the entered maximum LTV and reduced by the existing mortgage to estimate available mortgage room.
New mortgage
The proposed mortgage combines the existing balance, debts, and financed transaction costs before calculating a Canadian monthly mortgage payment.
Interest comparison
Each current debt is modeled with a constant payment. The consolidated balance is modeled over the full new amortization to reveal the cost of extending debt.
Interpret the result
Cash-flow improvement is not debt forgiveness
The balance still exists and may be repaid over a longer period, producing a lower payment but more years of interest.
LTV is a structural limit
A consolidation that exceeds the entered maximum LTV needs lower debt, more value, cash-paid fees, or another product.
Break-even addresses fees only
The simple break-even divides transaction costs by monthly cash-flow improvement and does not prove the consolidation is cheaper overall.
Behaviour determines success
If paid-off credit lines are reused, the borrower can end up with both a larger mortgage and new unsecured debt.
Common mistakes
- Focusing only on monthly payment reduction.
- Using minimum payments that do not reduce revolving balances.
- Financing short-term debt over 25 or 30 years without a prepayment plan.
- Leaving paid credit limits fully available without controls.
- Ignoring mortgage penalty and transaction costs.
What lenders review
- Property value and refinance LTV.
- Income, credit, debt-service ratios, and payment history.
- Mortgage penalty, collateral charge, and payout statements.
- Purpose of debts and risk of recurrence.
- Whether accounts must be paid and closed by the lawyer.
Planning tips
- Create an accelerated repayment amount after consolidation.
- Direct the monthly savings to mortgage prepayments or emergency reserves.
- Reduce or close unnecessary revolving limits where appropriate.
- Address the cause of debt before using home equity.
- Compare refinance, HELOC, second mortgage, consumer proposal, and non-mortgage options.
Connected HopeWell knowledge
Connect the debt consolidation calculator to the mortgage decision
Use the result alongside HopeWell's guide chapters, glossary definitions, real underwriting case studies, service pages, and related calculators.
Calculation pathway
Related mortgage calculators
Continue into qualification, purchase costs, equity, refinancing, HELOC planning, and mortgage comparison using the connected calculators below.
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Mortgage Refinancing Calculator Canada
Compare current and proposed mortgage payments, cash out, closing costs, LTV, interest, and break-even.
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Home Equity Calculator Canada
Estimate gross equity, accessible equity, sale equity, and secured borrowing room under multiple LTV assumptions.
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HELOC Calculator Canada
Estimate HELOC room, combined LTV, interest-only or amortizing payments, and rate sensitivity.
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Extra Mortgage Payment Calculator
Measure how recurring extra payments change interest, payoff time, annual cash commitment, and renewal balance.
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Mortgage Lump Sum Calculator
Compare keeping the payment or recasting after a lump sum, with interest savings and amortization reduction.
Frequently asked questions
Questions about this calculation
Does mortgage debt consolidation lower interest?
It can lower the rate on consolidated balances, but a longer amortization may still increase total interest unless the borrower prepays aggressively.
Why does the calculator show the whole mortgage payment?
The refinance replaces or restructures the existing mortgage, so the full payment matters even though cash-flow improvement isolates the incremental consolidated portion.
What if a debt payment does not cover interest?
The calculator cannot estimate a normal payoff because the balance may not decline under the entered payment.
Can consolidation improve credit?
Paying accounts can reduce utilization and missed-payment risk, but new inquiries, closed accounts, mortgage size, and future behaviour also affect credit.
Does fitting 80% LTV guarantee approval?
No. Lenders still assess income, credit, property, debts, documentation, and product rules.