Key takeaways
- Usually done as a refinance, HELOC or second mortgage.
- Refinancing is capped at 80% of your home's value.
- Close or lower the limits on paid-off cards so the debt doesn't return.
How much can I save?
| Before | After | |
|---|---|---|
| Credit cards at 21% (3% min payment) | $1,350/mo | $0 |
| Added to mortgage at 4.19% over 25 years | — | $241/mo |
| Monthly difference | $1,109 less |
Illustration only. Paying debt over 25 years can cost more in total interest than paying it faster.
Refinance vs second mortgage for debt
If your mortgage is near renewal, refinance. If breaking it costs too much, a HELOC or second mortgage can be cheaper overall.
Frequently asked questions
Does debt consolidation hurt my credit?
Paying off cards usually helps your utilization; the new mortgage is a credit check.
MBWritten by the MortgageBids.ca editorial team. Last updated October 7, 2026. General information only; your lender confirms terms for your file.
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