Debt Consolidation Loan Vaughan

There are many people throughout Vaughan and the surrounding area that are feeling overwhelmed by debt. At times, it feels like they are working just to meet their debt obligations and that there is no end in sight.  The good news is, that it is possible to get out of debt. It takes dedication and a solid plan.

If you already have the dedication, we are here to introduce you to a plan that just might work for you. It is called a debt consolidation loan.

What is a debt consolidation loan?

Just like the name suggestions, a debt consolidation loan is a loan that allows you to consolidate your other loans into one loan. When you first consolidate, you will have just as much debt as you did before, but now - in one loan – it is easier to keep track of, and you will save money on interest.

One of the best ways to get a debt consolidation loan is to borrow against the equity in your home either through a second mortgage or a mortgage refinance. But even if you are not a homeowner, you can still benefit from a debt consolidation loan in the for m of an unsecured loan.

Why should you choose a debt consolidation loan in Vaughan?

If you are struggling to pay off your high interest debt, getting a debt consolidation loan is one of the best things that you can do. For starters, having just one debt to make payments on – rather than multiple debts – can be a lot less stressful. There is less chance of forgetting since you only have one to remember. By keeping up with your regular payments, you will be working to improve your credit score.

But perhaps even more importantly, with a lower interest rate – sometimes much lower – you will be paying off more of the principal with each payment. This means that you will see more progress as you pay down your debt and that you will get out of debt faster.

How to get the best rates for debt consolidation loans in Vaughan

Working with a professional mortgage broker will help to ensure that you get the best possible rates on your debt consolidation loan for your situation. Mortgage brokers work with many different lenders so they can shop around to make sure that you are getting the best rate possible.

They will also help you get the best type of debt consolidation loan for your situation. For example, if you are a homeowner, then getting a mortgage refinance or a second mortgage is usually your best bet. But the one that makes the most sense for you will depend somewhat on how close you are to your mortgage renewal date. Your mortgage broker will run the calculations to determine which option is the best choice for you.

If you are not a homeowner, your mortgage broker can still get you a great rate on an unsecured loan.

How do I get a debt consolidation loan in Vaughan?

There are a number of ways that you can get a debt consolidation loan in Vaughan however the best way is to make an appointment with your mortgage broker.

Your broker will listen to your situation and assess your needs before making a recommendation as to the type of debt consolidation loan that you should get. If you agree, they will shop their database of lenders to find the best lender for you.  For example, some lenders specialize in helping those who have bad credit or those who are self-employed.

The lender will need to get some financial information from you. And if you are borrowing from your home equity, then a home appraisal may also be necessary. Your mortgage broker will put together a list of the documents that will be required and they can also help you with the home appraisal process if you need to get one.

Once all the necessary documents are collected, your broker will help you fill out your loan application. They will make sure that it is complete and free from any errors – as if it is not, this could slow down the approval process.

After your loan approval, your other debts will be paid off and now all you have to do is enjoy the benefits of getting out of debt faster!

Advantages of using a mortgage broker for getting a debt consolidation loan

There are many advantages to working with a mortgage broker to get a debt consolidation loan including:

  • Get expert advice on the type of debt consolidation loan that is right for you.
  • Have access to a wide variety of lenders.
  • Get a lower interest rate.
  • Get all the assistance you need in knowing what documents to collect and in getting a home appraisal.
  • Have someone you can go to with all of your questions about your loan.

Contact us today!

If you live in Vaughan or the surrounding area and you think that a debt consolidation loan might be right for you, contact us today to speak with one of our brokers.