Consolidating debt with mortgage canada
If she doesn’t consolidate, she will owe only 6,774.These numbers and the others cited below are drawn from the calculator Debt Consolidation in a Purchase Mortgage.
The 0,000 and the 5,000 first mortgages are both no-cost at 6% for 30 years -- they differ only in the mortgage insurance premium.
The consolidation increases the loan from ,000 to ,000, and the ratio of loan to value from 90% to 95%.
If a 95% loan-to-value ratio remains within the lenders underwriting requirements, the consolidation will work, but if 90% is the maximum allowable ratio, it won't.
The ,000 second mortgage is also no-cost at 10% for 15 years.
She is in the 25% tax bracket and wants interest loss to be calculated at 2%.