Debt consolidation refinance calculator
Rolling $54,000 of card, line-of-credit and car debt into a 4.58% mortgage over 22 years cuts $1,400 of monthly payments to $336, freeing $1,064. Spread over the amortization it costs about $32,618 in interest; keep paying the old $1,400 into the mortgage and it's gone in 44 months for about $4,832.
Debt consolidation refinance calculator
Roll high-interest debt into your mortgage: the cash flow you free and the interest it really costs.
Total interest three ways
| Measure | Keep paying the debts | Roll in, pay over 22 years | Roll in, keep paying the old amount |
|---|---|---|---|
| Interest | $14,906 | $32,618 | $4,832 |
Estimate, not advice. Educational estimate only, not financial, mortgage, tax or legal advice. Lenders, insurers and governments set their own rules and can change them; confirm with a licensed professional before you decide.
Frees $1,064 a month. Interest: $14,906 keeping the debts, $32,618 rolled into 22 years, $4,832 if you keep paying the old amount.
Show the numbers
| Monthly payments | Monthly |
|---|---|
| Now | $1K |
| After refinancing | $336 |
Assumptions & sources
Assumptions
- Debts are paid at the monthly payment you enter until cleared (cards at a fixed payment; real minimums fall as the balance does).
- Rolled-in debt is a separate slice of the mortgage at the refinance rate, semi-annual compounding.
- Default debt rates are Bank of Canada averages with their own dates; use your statements.
Sources
- Financial Consumer Agency of Canada — Borrowing money using home equity (80% / 65% limits, fees, risk to your home) (effective October 15, 2025). Checked .
- Justice Laws — Bank Act, s. 418: 80% limit on uninsured residential loans (including refinances) (effective September 1, 2026). Checked .
- Justice Laws — Interest Act, s. 6 (mortgage rates stated yearly or half-yearly, not in advance). Checked .
- Bank of Canada — Effective rate on outstanding credit card balances (series V122667812) (effective August 1, 2026). Checked .
- Bank of Canada — Effective rate on new unsecured personal lines of credit (series V122667807) (effective August 1, 2026). Checked .
- Bank of Canada — Effective rate on new personal loan plans (series V122667804) (effective August 1, 2026). Checked .
- Bank of Canada — Effective rate on new auto loans (personal loan plans) (series V122667805) (effective August 1, 2026). Checked .
How this tool works
Each debt is paid at the payment you enter until it's gone; the rolled-in amount (plus penalty and fees) is a separate slice of the mortgage at the refinance rate. Default debt rates are Bank of Canada averages (card balances 21.35%). If you're breaking mid-term, estimate the penalty and add it, or compare a refinance with a HELOC on the home page.
Frequently asked questions
Is it smart to refinance to consolidate debt?
It can be when it replaces high-rate debt and you keep paying close to what you paid before. Stretching card debt over 20+ years can cost more interest than it saves, and your home becomes the security.
How much can I borrow to consolidate debt?
A refinance can go up to 80% of your home's appraised value, all mortgages combined (Bank Act), and you must qualify at the stress-test rate.
Primary sources
- Financial Consumer Agency of Canada — Borrowing money using home equity (80% / 65% limits, fees, risk to your home) (effective October 15, 2025). Checked .
- Justice Laws — Bank Act, s. 418: 80% limit on uninsured residential loans (including refinances) (effective September 1, 2026). Checked .
- OSFI — Minimum qualifying rate for uninsured mortgages (contract + 2 points or 5.25%) (effective January 29, 2026). Checked .