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Ontario residential property

Debt Consolidation

Consolidate High-Interest Debt with Common Sense

Use your home equity to simplify your finances and hit the reset button, no credit score minimums.

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Stonefield Capital provides equity-based debt consolidation mortgages, allowing homeowners to consolidate credit cards, CRA arrears, unsecured loans, and existing high-rate mortgages into a single private mortgage, with no credit score minimums. Typical terms are 1 to 12 months at up to 70% LTV in the GTA, with the goal of rebuilding the borrower's credit profile for a return to traditional bank financing.

How Equity-Based Debt Consolidation Works

We understand that life happens. Our debt consolidation mortgages are designed to stop the cycle of high-interest debt, giving you the breathing room to rebuild your credit and your future.

If you own a home in Ontario with equity, use it to pay off high-interest debts by consolidating them into a private mortgage. Stonefield Capital registers a mortgage against your property and provides you with the funds to stop paying the high interest debt. In exchange, you make one monthly payment with lower interest and start improving your credit score. The interest rate on a private mortgage is higher than a bank mortgage but significantly lower than credit card and unsecured loan rates, reducing your total monthly obligations immediately.

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Stonefield Insider Tip: Rebuilding Your Credit

Your credit score is heavily affected by the utilization of your credit limits. By using a private mortgage to pay your balances down to below 30% of their limit, you will see a drastic improvement in your credit score. You don't necessarily need to pay them to $0 to see the benefit, the key is getting out of the "maxed out" zone. If you can keep the balance low, the credit will improve slowly and consistently.

What You Can Consolidate

  • ✓High-interest Credit Cards (20%+ APR)
  • ✓Unsecured Personal Loans
  • ✓CRA / Tax Arrears
  • ✓Mortgage Arrears
  • ✓Property Tax Arrears
  • ✓Existing High-Rate Second Mortgages
  • ✓Existing High-Rate Business Loans

A Bridge to Bank-Eligibility

We don't want you to have a private mortgage forever. Our goal is to help you consolidate your debt today so that in 6-12 months, your credit score and debt-to-income ratios can requalify for a traditional bank mortgage.

By eliminating multiple high-interest payments and replacing them with a single, manageable mortgage payment, you immediately improve your debt service ratios. Combined with paying down credit balances, most borrowers can become bank-eligible within one year.

Who Qualifies?

Qualification is based on two things: property equity and exit strategy. We do not require a minimum credit score or employment letters. If your property has sufficient equity and there is a realistic path to repaying or refinancing the private mortgage within the term (typically up to 12 months), the deal can be funded.

We generally fund up to 70% LTV in major urban centres (Toronto and major GTA, Vaughan, Richmond Hill) and up to 65% in secondary markets. As liquidity of a property reduces, so does our maximum LTV.

Frequently Asked Questions

Will this stop my credit card interest immediately?
Yes, it can. Once the private mortgage is funded, your credit card balances can be paid in full at closing by your lawyer. This allows the 20%+ interest cycle to stop immediately. Replacing 20%+ credit card rates with a single mortgage payment typically cuts the borrower's monthly debt service by hundreds of dollars from day one.
Can I consolidate CRA or Property Tax arrears?
Yes. CRA arrears and property tax arrears are two of the most common debts we consolidate. Both are paid in full directly from closing proceeds, eliminating the risk of CRA collection action or a municipal tax lien being placed on your property.
How does this help me get back to a bank?
Two mechanisms. First, replacing multiple high-interest payments with one mortgage payment can improve your debt service ratios immediately. Second, paying credit card balances below 30% utilization typically lifts your credit score by 50–100 points over 3 to 6 months. Borrowers credit score can become bank-eligible within 3 to 12 months (assuming their credit card balances remain on the lower end).
Do I need an appraisal for debt consolidation?
We rarely require a formal appraisal on debt consolidation deals. Stonefield uses its own comparable sales analysis, saving the borrower the $500–$1000 appraisal cost and shaving 3 to 5 days off the closing timeline. On the rare file that needs a formal appraisal, we flag it in the initial response.
What happens if my credit is very poor?
Stonefield has no minimum credit score. We fund files with active consumer proposals, discharged bankruptcies, collections and late payment histories as long as the equity supports the loan and the exit plan is realistic. Most debt-consolidation borrowers use the 1-to-12-month term as the starting point for rebuilding credit.

Ready to Consolidate Your Debt?

Equity-based qualification. No income proof. No credit minimum.

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