This is the action of refinancing your debts by taking a single big loan in order to pay off smaller debts. If you have too many small loans, it is likely that you are paying extremely high monthly fees. People find debt consolidation to be the cheapest, most convenient method of handling debts. You should note that the type of loan taken determines how much a client will pay as interest. The most expensive rates are for unsecured loans at 19%-29% while mortgages have some of the lowest interest rates on loans. Mortgages have low fees because they are secured by the property, which a creditor can sell to get their money back. We are a company of experienced loan professionals who have been arranging debt consolidation loans in Oakville for many years and there is always a professional waiting to discuss your situation.
Advantages of Debt Consolidation Loans in Oakville
People find debt consolidation loans to be a reliable option especially because it is extremely hard to keep up with expensive monthly payments for different loans. A registered mortgage allows people to borrow from institutional lenders as well as private creditors. These are the least risky kinds of loans, hence the reason for high loan amounts as opposed to credit cards that limit credit to a few thousand.
Common Reasons for Consolidating Debts
People have different objectives for seeking debt consolidation loans. The most popular are:
- Lower Monthly Fees: You can choose to pay a debt consolidation loan over a long time to reduce the amount you need to pay each month. This makes thing more convenient especially for customers who do not earn much money.
- Lower Interest Rates: Mortgages are some of the cheapest loans available. Taking a debt consolidation loan translates into lower interest paid overall.
- Better a Credit Score: If you fail to repay loans on time, it will hurt your credit score. This is bad because with a poor rating you cannot get low interest bank loans. Using a debt consolidation loan is one way to protect your poor score.
Various Debt Consolidation Methods
We offer some options like mortgage refinancing, first and second mortgages.
This is the way to go if you feel that ditching a current loan for a new one will lead to savings over time. Ending a mortgage early attracts a penalty of three months interest fees but if you factor this in with interests and find a chance to save, mortgage refinancing is certainly the best option.
If you already had a loan on the property, you can approach private lenders for a loan. The interest charged is higher than for the original loan because it is likely that you will default and the second mortgage lender might not be compensated after the first creditor has taken their money.
This loan has the lowest rates among all other loans on a property. Equity is untouched and that for private lenders is a guarantee that they will recoup after a power of sale
Private Lenders of Debt Consolidation Loans in Oakville
The best loans come from banks who charge some of the lowest interest rates. However, not everyone can get a bank mortgage because you must portray positive credit habits. To assess this, institutional lenders must see that your score is at 550 points or more in Canada. Otherwise, you only have private lenders who can provide debt consolidation loans but with a slight difference.
Private lender debt consolidation loans in Oakville are offered at high interest rates as lenders try to mitigate risk. They don’t care much for credit score but private lenders are sensitive to risk. This is why they reject loans for a property with too little equity. The value of a property minus its debts is important because it shows a private mortgage lender that they can recoup from the sale of a property whose owner was unable to repay.
Our team has a wide network of private lenders and we can help our customers get multiple loan offers. Our experts will discuss the quotes to help you understand the fees associated with each and further advice on which they feel will eventually save you the most money.