Can I consolidate credit card debt into my mortgage?
Updated: February 28, 2026CanadaFAQPrivate lending
Quick Summary
Yes, if you have enough equity you can use a refinance, home equity loan, or second mortgage to pay off high-interest unsecured debt.
Debt consolidation replaces unsecured debt (credit cards, lines of credit) with secured debt against your home.
Why people do it
- Credit card interest is often very high, so consolidation can reduce monthly payments and simplify cash flow.
Important trade-offs
- You are turning unsecured debt into debt secured by your home.
- Fees, penalties, and term length can change the true cost.
- If spending habits do not change, balances can rebuild.
How to evaluate the deal
Ask for a full comparison: current payments vs new payments, total cost over your expected payoff timeline, and net proceeds after fees. If you plan to refinance again soon, pay close attention to minimum-interest and prepayment terms.