Debt consolidation mortgage calculator
Moving credit cards, a line of credit or a car loan into your mortgage almost always lowers what goes out each month. It can also mean paying for a four-year car loan over twenty-five years. This shows both, and the version that keeps the saving without the cost. Nothing you enter leaves your browser.
Your home and mortgage
What else you owe
The new mortgage
Estimate · your monthly payments
$3,957 a month becomes $2,690
That is $1,267 a month less going out. Your $65,000 of other debt costs an average of 11.79% today; inside the mortgage it would cost the mortgage rate. The catch is time: debts you would have cleared in a few years get spread over the whole amortization, and the table below shows what that does.
| Side by side | Everything as it is | Consolidated, lower payment | Consolidated, paying what you pay now |
|---|---|---|---|
| Going out each month | $3,957 | $2,690 | $3,957 |
| Interest over the next five years | $107,568 | $101,955 | $93,012 |
| Still owing after five years | $365,872 | $427,059 | $342,084 |
| Interest until everything is repaid | $260,898 | $320,483 | $164,105 |
| Debt-free, mortgage included, in | 22.0 years | 25.0 years | 13.8 years |
How to read this
- The lower payment has a price. Taking the lower payment and nothing else means about $59,585 more interest by the time everything is repaid, because short debts become long ones.
- Keeping today’s total changes the picture. Send the same $3,957 a month to the one new mortgage and everything is repaid in 13.8 years.
- The fair comparison for that. Without consolidating, paying the same total and rolling each cleared payment onto the most expensive debt left, then the mortgage, takes 14.2 years and $184,467 of interest. Consolidating and keeping the payment comes out about $20,361 ahead of that.
Your debts as they stand
| Credit cards | $18,000 at 20.99% | clear in 4.3 years · $9,243 interest |
| Line of credit | $25,000 at 8.95% | clear in 7.1 years · $8,786 interest |
| Car loan | $22,000 at 7.49% | clear in 4.2 years · $3,625 interest |
New mortgage $486,500, which is 62.4% of the home’s value. Blended rate across everything today: 5.47%.
Estimates based on the information entered. Mortgage interest compounds semi-annually, other debts monthly. Lifetime figures assume rates never change, which they will, so use them to compare options rather than as a forecast. Qualifying for a refinance depends on income, credit and an appraisal, none of which this tool can see.
For informational purposes only — consult a licensed mortgage professional before deciding.
How the estimate works
Three paths, not two
Most consolidation calculators compare today’s payments with one new, lower payment and stop. We add a third column: the new mortgage, with the same money still going out each month. That column is usually the one that matters, because it keeps the lower rate and removes the cost of stretching the debt out.
A fair yardstick
To judge that third column honestly, it is compared with not consolidating at all but paying the same total: each debt at its own payment, and as one clears, its payment rolled onto the most expensive debt left, then the mortgage. Both send out identical money each month, so the difference is the rate alone, less the penalty and costs.
The 80% limit
A refinance in Canada cannot exceed 80% of the home’s appraised value. The calculator adds your mortgage, the debts, any penalty and the closing costs, and tells you if the total goes past that line and how much room there actually is.
What it cannot see
Whether you would qualify. A refinance is a new application, assessed on income, credit and an appraisal, and tested at a higher rate than the one you would pay. It also cannot see a penalty: if you are mid-term, the break penalty calculator will estimate one to enter here. At renewal there is none.
Common questions
- What does it mean to consolidate debt into a mortgage?
- It means refinancing your mortgage for a larger amount and using the extra to pay off other debts, such as credit cards, lines of credit and car loans. You are left with one payment at the mortgage rate instead of several payments at higher rates. The debt does not disappear; it moves, and it is then repaid over the life of the mortgage unless you choose to pay it faster.
- How much can I borrow against my home to consolidate debt in Canada?
- A refinance in Canada is capped at 80% of the home's appraised value, including the existing mortgage. On a home worth $780,000 the ceiling is $624,000, so with a $420,000 mortgage there is room for up to about $204,000 more, less any penalty and costs rolled in. You also have to qualify for the new mortgage on income and credit, including the stress test.
- Does consolidating debt into a mortgage save money?
- It lowers the monthly total almost every time, and it lowers the interest rate on the consolidated debt. Whether it saves money overall depends on how long the debt then takes to repay. A car loan that would have been gone in four years, spread over twenty-five, can cost more interest in total even at a much lower rate. If the money freed each month keeps going to the mortgage, consolidating usually comes out ahead. The calculator shows both versions so you can see the difference for your own numbers.
- What does it cost to refinance for debt consolidation?
- If you refinance in the middle of a term there is a prepayment penalty, which for a fixed-rate mortgage is the greater of three months' interest and the interest rate differential. At renewal there is no penalty. Either way there are usually legal, appraisal and discharge costs, often between $1,000 and $2,500, which some lenders cover. The calculator adds the penalty and costs to the new mortgage so they are counted.
- Is a home equity line of credit a better way to consolidate?
- A HELOC avoids breaking the mortgage, so there is no penalty, and you pay interest only on what you use. The rate is usually higher than a mortgage rate and it floats with prime, and because only interest is required each month the balance can sit unpaid for years. It can suit smaller amounts or a mortgage that would be expensive to break. A broker can price both for your situation.
- What are the risks of rolling unsecured debt into my mortgage?
- Credit card and loan debt is unsecured; mortgage debt is secured against your home. Consolidating converts one into the other, which is part of why the rate is lower. It also uses up equity, and if the spending that created the debt continues, the cards can fill up again with the old balances still inside the mortgage. None of that makes it a bad choice, but they are the things worth weighing beyond the monthly payment.
Last reviewed 20 September 2026. General information, not advice about your situation. The mortgage is one of several ways to consolidate; the others, from balance transfers to a HELOC, are compared here.