Debt Consolidation
Debt Consolidation Mortgages in Ontario — When Credit Is the Problem
High-interest cards and loans piling up, and your bank won't help because your credit slipped? The equity in your home can roll them into one lower payment — credit score isn't the gate.
Stonefield Capital helps Ontario homeowners consolidate high-interest debt using the equity in their home, even when bad credit, missed payments, or high debt ratios have led to a bank decline. Qualification is based on property equity and a clear exit strategy rather than credit score. Borrowers are matched with a Stonefield-approved mortgage broker who structures the consolidation and plans the return to conventional financing as credit recovers.
Why Banks Decline Debt Consolidation When You Need It Most
Debt consolidation is a chicken-and-egg problem at a bank. The moment your credit slips or your debt ratios climb — exactly when consolidating would help most — the bank's rules disqualify you. They score the debt, not the equity, so a homeowner with real value in their property gets turned down and left carrying 20%-plus interest on cards and consumer loans.
A private mortgage inverts that. Stonefield qualifies on the equity in your home and a clear exit, not your credit score, so the debt that's sinking your bank application is the very thing a consolidation is meant to clear. You're matched with a Stonefield-approved broker who structures the payout and plans your return to conventional lending as your credit recovers — which it typically does once the high-interest balances are gone.
The Play: Consolidate Now, Refinance to a Bank as Credit Recovers
A consolidation mortgage is a bridge, not a destination. Use a short private mortgage to clear the high-interest cards, loans, and arrears today, then let the next 6 to 12 months do their work: with those balances gone, your credit score climbs and your debt ratios reset. Once they've recovered enough, refinance the consolidation into a lower-rate bank or B-lender mortgage. The private mortgage bought you the runway to fix the credit the debt had wrecked — a Stonefield-approved broker plans that exit with you from the start.
When Debt Consolidation Borrowers Come to Us
Most of these are homeowners with the equity to fix the problem, blocked by the problem itself.
High-Interest Cards & Loans
Multiple balances at 20%+ that never shrink. Rolling them into one equity-based payment stops the bleed.
Bank Declined on Credit
Your score or debt ratios triggered a decline — the exact situation a consolidation is designed to fix.
Missed Payments or Arrears
You've fallen behind and it's compounding. A consolidation clears the arrears before they become something worse.
CRA or Tax Debt
Tax arrears alongside consumer debt. Equity can clear both and stop collection pressure.
Rebuilding Credit
Clearing high-interest balances typically lifts your score over the following months, opening the door back to a bank.
One Lower Payment
Several payments and due dates collapsed into a single, more manageable monthly amount.
In every case Stonefield looks at your home's equity and a realistic exit — not the credit score the debt has dragged down.
What Debt Consolidation Borrowers Should Know
Equity, Not Credit Score
Qualification rests on the equity in your property and a clear exit. There's no minimum credit score; your Notice of Assessment is requested to confirm there are no large unresolved CRA arrears.
It Usually Helps Your Credit
A private mortgage isn't reported to the bureaus, but clearing high-interest debt with it typically improves your score over the next 3 to 12 months — which is what gets you back to a bank.
Matched With a Broker
You're connected with a Stonefield-approved mortgage broker who structures the payout, handles the paperwork, and plans the exit to conventional lending — usually within one business day.
Frequently Asked Questions
Can I consolidate debt with a mortgage in Ontario if I have bad credit?
Will consolidating with a private mortgage hurt my credit?
How much can I borrow, and at what rate?
Can I include CRA or tax debt in the consolidation?
How do I start?
Common Questions
A deeper answer to the question debt-consolidation borrowers ask most.
Can I Get a Debt Consolidation Mortgage in Ontario with Bad Credit?Ready to Consolidate and Stop the Bleed?
Get matched with a Stonefield-approved broker who lends on your equity, not your credit score. Free, no obligation, most borrowers hear back within one business day.