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Debt Consolidation in 2026 — How Ontario Homeowners Are Cutting Payments by 40–60%

If you’re like many Ontario homeowners in 2026, you’re probably feeling it:
January 9, 2026 by
Debt Consolidation in 2026 — How Ontario Homeowners Are Cutting Payments by 40–60%
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✔ higher mortgage payments

✔ higher credit card balances

✔ higher cost of living

✔ no breathing room

Debt doesn’t just affect your money. It affects your sleep, your stress, your family, and your future.

The truth is… you may be paying thousands in interest you don’t need to — and your home equity could be the solution.

Many Ontario homeowners are using home equity & private mortgages to consolidate debt, lower monthly payments, and finally breathe again.

Lendworth helps homeowners do exactly that.

Why Debt Has Exploded for So Many Canadians

Over the last few years, life got more expensive fast:

  • Interest rates jumped

  • Credit card rates hit 20%+

  • Lines of credit tightened

  • Banks tightened approvals

So balances grow… and payments feel never-ending.

But if you own a home, you may already be sitting on the solution: equity.

How Debt Consolidation Using Home Equity Works

If your home has equity, you can:

1️⃣ Roll high-interest debts into your mortgage or a second mortgage

2️⃣ Replace 20%+ interest debt with lower-rate financing

3️⃣ Reduce monthly payments by 40–60% or more

4️⃣ Get one simpler payment instead of many

Even if:

❌ your credit isn’t great

❌ the bank already said “no”

❌ you’re self-employed

❌ you’re behind on payments

We focus on property value + available equity, not just your credit score.

📉 Real Example — See How Much Homeowners Are Saving

BEFORE Debt Consolidation

  • Credit Cards: $35,000 @ ~19.99% → ~$1,050/month

  • Line of Credit: $25,000 @ ~11% → ~$550/month

  • Car Loan: $22,000 @ ~9% → ~$500/month

  • Personal Loan: $18,000 → ~$450/month

Total Monthly Payments: $2,550/month

High interest. No relief. Constant stress.

AFTER Debt Consolidation (Using Home Equity)

All debt rolled into a mortgage/second mortgage.

Approx. Payment: $950–$1,300/month

🟢 Monthly savings: $1,200–$1,600+

🟢 One simple payment

🟢 Lower interest

🟢 Credit stops bleeding

That’s 40%–60% LESS every single month.

And for many clients?

It’s the difference between drowning and finally breathing again.

Why Banks Say “No” (But We Don’t)

Traditional banks decline consolidation requests if you:

  • Have bruised credit

  • Have high utilization

  • Recently fell behind

  • Are self-employed

  • Don’t fit their strict criteria

But tough times shouldn’t permanently punish you.

Private mortgage solutions are designed to help you stabilize, reset, and rebuild.

Who This Helps Most

We help Ontario homeowners dealing with:

✔ credit card debt

✔ payday loans

✔ high-interest personal loans

✔ car payments

✔ CRA tax debt

✔ mortgage arrears

If there is equity, there is almost always a solution.

How Fast Can This Happen?

Many approvals happen within 24–48 hours, with fast funding that helps you:

  • stop late payments

  • reduce stress

  • get financial stability back

Confidential. Compassionate. No judgment.

FAQ — Debt Consolidation Mortgage Ontario

Will this hurt my credit?

Most clients see improvement once debt balances drop and payments become manageable.

Can I qualify with bad credit?

Yes — we focus on equity, not just credit score.

Is this long-term?

Many use it short-term to stabilize, then refinance later when life improves.

Is this confidential?

Absolutely.

See How Much You Can Save — Get a Free Assessment

If your debt feels overwhelming, you’re not alone — and you DO have options.

Let’s look at your numbers and see how much you could save.

📞 Call: 905-597-1225

📩 Email: info@lendworth.ca

🌐 Apply online: lendworth.ca

See how much you can save — get a free assessment with Lendworth.