Debt Consolidation Loan Mississauga

Many people in Mississauga are struggling with debt. They may have high amounts of student loans to payoff; they may have gotten themselves into trouble with consumer debt: or they may have debt as the result of some emergency that left them with large bills to pay off and not enough income to do it with. Whatever the reason, once you have debt it can feel like a real pain to pay it off. Fortunately, there are steps you can take to overcome debt. One of the best strategies to help you get out of debt quickly is to get a debt consolidation loan.

What is a debt consolidation loan?

This is a type of loan that you borrow for the amount of your present debt so that you can use the funds to pay off your current creditors. It doesn’t leave you with any less debt initially, but it gives you a way to pay off what you already owe more quickly.

It does this in two main ways:

  • It gives you a lower interest rate – so if you keep your payments at the same rate you are paying on your other high-interest debt, you will be paying down more of the principal with each payment. This means you will get out of debt faster.
  • Instead of paying multiple creditors, you will now only have one debt payment to make each month. This is not only more convenient, but there is less chance of missing a payment – which can hurt your credit score.

A debt consolidation loan can come in a number of forms. If you own your own home, it can be in the form of a second mortgage or a mortgage refinance.

If you do not own your home, then you can still get a debt consolidation loan, but in the form of an unsecured loan.  An unsecured loan will typically have a higher interest rate than mortgage solutions, however your rate is still likely to be much lower than what you are already paying on other forms of debt.

Why should you choose a debt consolidation loan in Mississauga?

If you have been struggling with debt for some time, then choosing a debt consolidation loan can benefit you in many ways including:

  • Lower your interest rate so you can reduce your payments or pay off your debt faster.
  • Consolidate your debt into one easy and convenient payment.
  • Help you improve your credit score as you make your regular payments.

How to get the best rates for debt consolidation loans 

When getting a debt consolidation loan, it is important to get as low an interest rate as possible as this will be the best way for you to pay off your debt quickly. To get the best rate in Mississauga, you should consult with a professional mortgage broker.

Whether you are getting a mortgage solution such as a second mortgage or a mortgage refinance, or whether you are getting an unsecured loan, a mortgage broker can help you.

They can analyse your situation in order to recommend the best type of debt consolidation loan for you, and then they can review their extensive database of lenders to find not only a lender that can meet your needs, but also one that is able to offer you a great rate.

How to get debt consolidation loan

The first step in getting your debt consolidation loan should be to contact a professional mortgage broker in Mississauga. They will arrange a time to sit down with you and review your situation.  This is necessary in order to ensure you not only get the right type of debt consolidation loan, but also to ensure that you are getting the best possible rate.

Once this is determined, your broker will help you apply for the loan with the lender.  Your broker will give you a checklist of any financial documents that the lender will need to see before they can approve your loan.  If you are getting a second mortgage or a mortgage refinance, you may also need to get a home appraisal. Your mortgage broker can help arrange for this as well.

Advantages of Using a Mortgage Broker for debt consolidation loan 

While there are other ways to get debt consolidation loans, it is best to work with a mortgage broker. Working with a mortgage broker offers the following advantages.

  • They can help you determine the best type of debt consolidation loan for you.
  • They can shop around on your behalf in order to help you get the best rate.
  • They can help you with the application process and give you a list of documents you will need to provide for the lender.
  • They can help you obtain a home appraisal if needed.
  • They can answer all of your questions so that you can feel confident with your decision.

Contact us today!

If you are looking for a debt consolidation loan in Mississauga, we can help! Contact us today to speak with a broker!