Debt Consolidation Loan Brampton

For many residents of Brampton, paying off debt can seem like an insurmountable challenge. There are many strategies can help you pay off your debt but one of the best strategies is to get a debt consolidation loan.

What is a debt consolidation loan?

Simply put, a debt consolidation loan, is a loan that you get in order to pay off all your other consumer debt. This in itself doesn’t put you any further ahead debt-wise, but it does two things for you. It makes it easier to by off your debt because now you only have one payment to remember. And it lowers you interest rate which enables you to pay off your debt more quickly.

A debt consolidation loan can come in many forms. If you are a homeowner, you can borrow from your home equity through a second mortgage or through mortgage refinancing. If you are not a homeowner, you can still get a debt consolidation loan but in the form of an unsecured loan.

Why should you choose a debt consolidation loan in Brampton?

If you are living with debt and struggling to pay it off, getting a debt consolidation loan can help you in a number of ways.  Benefits to getting a debt consolidation loan include:

  • One easy payment so there is less risk of forgetting to make a payment.
  • Lower interest rates so you can reduce your monthly payments, pay off your debt more quickly, or possibly both!
  • Improve your credit rating – as you continue to make your regular payments and pay off debt, you will begin to improve your credit rating.
  • Peace of mind – rest easier knowing that you finally have a plan to get out of debt.

How to get the best rates for debt consolidation loans?

Because there are many different types of debt consolidation loans, there are also a range of rates. Generally speaking, the better your credit rating is, the better the rate you will be able to get on your debt consolidation loan. Further, secured loans such as mortgage refinances and second mortgages tend to have better rates than unsecured loans.

But to truly get the best rate for your situation, you should consult with a professional mortgage broker. If you are looking to borrow from your home equity, a mortgage broker can help you determine what type of loan makes the most sense for your situation. Furthermore, once they have determined the best type of loan they can shop through their extensive database of lenders to find the lender that is the best fit for you.

And if you don’t own a home? Don’t worry. Many mortgage brokers can also help you to obtain and unsecured loan as well.

How to get a debt consolidation loan?

Your first step if you are looking for a debt consolidation loan should be to set up an appointment with your mortgage broker. Your broker will review your personal situation and make recommendations on the most appropriate type of debt consolidation loan for you, before shopping lenders to find you the best rate.

Depending on the lender you end up working with, you will have to provide various financial information such as bank statements, pay stubs, etc. If you are borrowing from your home equity, you may also have to arrange for a home appraisal. Your mortgage broker will be able to help you with this.

Advantages of using a mortgage broker for debt consolidation loan

While it is not strictly necessary to work with a mortgage broker when you are getting a debt consolidation loan, there are many reasons why you should consider doing so. Some of the benefits of working with a broker include:

  • Get expert advice on the best type of debt consolidation loan for you (there are types when a second mortgage is best, but also times when it is better to refinance.)
  • Let your mortgage broker shop around on your behalf to find you the best possible rate for your situation.
  • Allow your mortgage broker to assist you in getting a home appraisal if one is needed.
  • Get help from your mortgage broker in knowing what financial documents to compile for the lender.
  • Get all of your questions answered so you can proceed with confidence in getting your debt consolidation loan.

Contact us today to learn more.

If you are finally ready to get out of debt, then a debt consolidation loan can help you get there. With a debt consolidation loan, you can enjoy both the convenience of having only one monthly bill, and the relief of having much lower interest rates.  Contact us today to speak with one of our mortgage brokers in Brampton. We will review your situation and help you find the debt consolidation loan that makes the most sense for you.