Mortgage · Refinance
Refinance to consolidate debt calculator.
Rolling credit cards and loans into a new mortgage usually lowers what you pay each month. Whether it lowers what you pay in total depends on the penalty, the fees, the new rate on the whole mortgage and how long the debt would have taken to clear. This shows both, at several time horizons.
Compare what you would pay out over a time horizon, plus what you still owe at the end, with and without consolidating. Example: $30,000 of card debt at 21% (paid at $700 a month) rolled into a $300,000 mortgage at 5% with $1,000 of fees saves about $15,427 at 5 years, but only about $1,847 at 25 years, because the debt now sits on a 25-year loan. A lower payment is not the same as a lower cost.
Inputs
Payment relief and total cost
Fill the form and press Calculate.
What “total cost” means here
For each time horizon the tool adds up what you would pay out over those months plus what you would still owe at the end. Staying put means the old mortgage payment and each debt on its current payment (a debt’s payments stop once it clears). Consolidating means one new mortgage that includes the debts, the prepayment penalty and the fees, on the payment its rate and amortization give. The lower total wins, and the gap is the saving. Debts are assumed to compound monthly on the annual rate you enter, and the mortgage compounds half-yearly, the usual fixed-rate convention under Interest Act s. 6.
Worked example. $30,000 at 21% paid at $700 a month clears in 80 months. Mortgage $300,000 at 5% with 25 years left, refinanced at 5% over 25 years with $1,000 of fees: the new mortgage is $331,000 and the payment falls from $2,444.81 ($1,744.81 + $700) to $1,925.11, a $519.70 monthly relief. Against staying put, consolidating comes out ahead by $3,566 after 1 year, $15,427 after 5, $11,424 after 10 and $1,847 after 25. The saving peaks and then shrinks, because from about year 7 on you are still paying interest on money that would have been repaid by month 80.
This page’s starting values show the other side. With the mortgage rate rising from 4.00% to 5.00% on $400,000, the payment still drops by $471.19 a month, yet staying put is cheaper at every horizon from 1 to 25 years, because the higher rate applies to the whole mortgage and not just the debt.
Things the tool does not decide for you
FCAC lists consolidating other debts that have higher interest rates into your mortgage as one thing to consider when you renew, and says you may usually borrow up to 80% of your home’s value, with fees that can include appraisal, title search, title insurance and legal fees and possibly a new mortgage loan insurance premium. Rolling debts into a mortgage also secures them against your home. Where the penalty is large, FCAC suggests waiting for the end of your term; where your term is ending, enter 0.
Sources, read 15 October 2026: FCAC — Borrowing against your home equity (15 October 2025); FCAC — Renewing your mortgage (15 October 2025); FCAC — Mortgage fees: Prepayment penalties; Interest Act s. 6 (compounding).
Frequently asked questions
Is it a good idea to refinance my mortgage to pay off debt?
It lowers your monthly payments if the debt rates are higher than your mortgage rate, but it can raise your total cost because the debt is spread over the mortgage amortization and the whole mortgage may re-price. The table shows the total cost at 1, 3, 5, 10 and 25 years.
Why does the saving shrink over longer horizons?
Because the debt would have been cleared in a few years on its own, but on the mortgage you keep paying interest on it for the whole amortization. Paying the old combined payment on the new mortgage avoids that; the page shows how fast it would clear.
What if I only roll in the credit card and keep my mortgage rate?
Enter your current rate as the new rate and the penalty as 0 if your term is ending. That isolates the effect of moving the card balance onto the mortgage.
Do I pay a penalty to refinance for debt consolidation?
If you break a closed mortgage early, FCAC says the penalty will usually be the higher of 3 months’ interest and the IRD. Doing it at renewal avoids it.
How much can I borrow against my home?
FCAC says you may usually borrow up to 80% of your home’s value. Enter your home value to see the new mortgage as a share of it.
Does this account for the interest on my cards compounding daily?
No. It treats the rate you enter as an annual rate compounding monthly with a fixed payment. Real cards can differ slightly; use your statement for the exact payoff.
Estimate only — confirm with your lender
This tool illustrates the arithmetic with rates, payments and costs you type. It does not know your credit, your lender’s approval, appraisal, insurance requirements or fees, and rolling unsecured debt into a mortgage secures it against your home. This is not financial advice; confirm every figure with your lender.