Debt Consolidation Calculator
Put in your home's value, your mortgage, any other mortgages and every debt. It works out the penalty, the legal, appraisal and lender fees for a bank, B or private lender, checks the new mortgage against that lender's limit, and tells you plainly whether consolidating saves more than it costs.
Your home
Your first mortgage
Estimated penalty: $7,800 (interest rate differential). The same method as our penalty calculator.
Other mortgages and home equity lines
None. Add a second mortgage or a home equity line here if you have one.
Every other debt
The new mortgage
The rate is an example to start from: enter the rate you are quoted. Private mortgages are usually interest only, on a one or two year term.
What it costs to do it
Starting fees for this lender: lender 0%, broker 0%. A broker fee, when there is one, is at least $2,500. Change anything to match your quote.
Compare over
Over the next 5 years you would pay $40,455 less interest, which is $30,155 more than the $10,300 it costs to do. Your payments drop $1,956 a month.
Consolidating turns cards, lines and loans into debt secured against your home. If the payments stop, the home is what is at risk, and the cleared cards have to stay clear.
One payment of $2,444 over 30 years.
- Penalty on your first mortgage
- $7,800
- Legal, including title insurance
- $2,500
- Appraisal
- $0
- Lender fee (0%)
- $0
- Broker fee (0%)
- $0
- Total
- $10,300
Added to the mortgage, so nothing is paid in cash at closing. The interest saved covers them after about 11 months.
- Interest saved
- $40,455
- Less the cost to do it
- −$10,300
- Net over 5 years
- $30,155
Still owed after 5 years: $400,947 now, $477,370 after.
- Prices the penalty on your first mortgage with the same method as our penalty calculator (3 months' interest, or the big-bank or monoline IRD), or takes the figure from your payout statement
- Four real lender lanes, bank, B lender, private first and private second, each with its own fees and its own limit on how much of the home's value it lends
- Judges it on interest saved against the full cost of doing it over the years you choose, not on the lower payment alone, so stretching a car loan over 30 years is not counted as a saving
- Tells you plainly when it costs more than it saves, and when the new mortgage is over the lender's limit
Want your real numbers run?
The penalty from your lender, the rate you would actually get, and the lender whose limits fit. We run it both ways, including waiting for your renewal. Free, no obligation, same-day reply.
Get my free personalized quoteNo credit pull · No spam · Reply within hours
Common questions
Does consolidating debt into my mortgage make sense?+
It makes sense when the interest you save over the next few years is more than everything it costs to do: the penalty on your mortgage, legal, an appraisal, and lender and broker fees on a B or private mortgage. A lower monthly payment on its own does not prove it. Stretching a car loan or a card over 30 years lowers the payment and can still cost more interest. The calculator compares both, over the number of years you choose.
How much of my home's value can I borrow to consolidate debt?+
A bank refinance goes up to 80% of the home's value, and B lenders typically to 80% as well. A private first mortgage usually goes to about 75%, or 65% on a condo, and a private second to about 75% combined with your first mortgage, 65% on a condo. These are typical maximums. Each lender sets its own, and the calculator warns you when the numbers go over.
What does it cost to consolidate debt into a mortgage?+
Breaking a mortgage before its term is up carries a penalty: 3 months' interest on a variable rate, and the greater of 3 months' interest or the interest rate differential on a fixed rate. At renewal there is none. Legal, including title insurance, is about $2,500, and an appraisal may be needed. A bank mortgage normally has no lender or broker fee; a B lender usually charges about 1% plus a 1% broker fee, and a private lender about 1% on a first mortgage or 2% on a second, plus a broker fee. A broker fee, when there is one, is at least $2,500. You can change every figure.
Should I break my mortgage now or wait for my renewal?+
At renewal there is no penalty, so consolidating then costs the least. Mid-term, the penalty has to be earned back by the interest you save, and sometimes it is, quickly, when the debts carry card rates. A private second mortgage can clear the debts now without breaking a low-rate first mortgage, and the two can be folded together at renewal. Tick the renewal box in the calculator to see both dates side by side.
What is the risk of consolidating debt into my mortgage?+
Cards, lines and loans that were unsecured become debt secured against your home, so if the payments stop, the home is what is at risk. Spreading short debts over a long amortization can mean paying more interest in total, even with a lower rate. And the cleared cards have to stay clear: running them up again leaves you with the bigger mortgage and the old debts back.
Case Studies — files like this
Anonymized case studies from our files. Names and identifying details removed.
- Case study · Residential / Alternative$270,000 of Corporate CRA Debt Put a Brewery's Operating Line at Risk: A Refinance of the Family Acreage Paid It and Kept the LineA refinance of the family's five-acre ALR home with an alternative lender, about $2.2 million at 75% on the company's bank statements, paid $270,000 of corporate CRA debt and $100,000 of personal debt and kept the brewery's $500,000 operating line open.Read the file →
- Case study · Residential / PrivateAbout $240,000 of Debt and Scores in the 400s After Helping Family Through COVID: A Private Mortgage With Twelve Months of Interest in ReserveRetirees with about $240,000 of cards and loans, written-off accounts, tax arrears and scores of 474 and 488: in 2023 a private first mortgage at 60%, with a twelve-month interest reserve from the loan, consolidated it all. In 2024 they moved to a major bank.Read the file →
- Case study · Commercial / Alternative-to-ABanks Declined. Private Lenders Charged 10%+. We Cut His Rate in Half.Cut the borrower's interest rate in half, moved from double-digit private mortgage costs to an alternative commercial mortgage, paid down principal, improved his credit and cash flow, and positioned him for a prime-lender refinance within two years — one broker, one custom plan, from private exit to prime placement.Read the file →
Only after the blended rate of everything you owe? The blended interest rate calculator → does exactly that. For the penalty alone, both lender methods side by side, use the penalty calculator → and to see how clearing the debts moves your qualifying ratios, the GDS / TDS calculator →
How we structure these files, bank, B and private: debt consolidation mortgages.
Every calculator here is built on published Canadian government rules and lender methodology. This one was built and checked for accuracy on October 20, 2026 — the arithmetic verified against those rules and the page re-read on screen. Rates and thresholds change — we confirm the current numbers for your file before you rely on them.