Where the combined mortgages result in one "high ratio" Mortgage:
If neither (or none) of the mortgages you're combining was ever insured against your Default, but in combining them you'll be in a high-ratio situation, you'll be required to pay an insurance premium. You need to look closely at the total savings the combination will give you, in order to determine whether this is financially worthwhile. themortgage.com Mortgage Qualifier will detail the costs of this insurance in the "results" window. Try it now!
Where the combined mortgages result in a new "conventional" mortgage:
Default insurance is not required. Congratulations are in order. Whatever circumstances initially required the second mortgage have presumably now been overcome. As long as you qualify with your income and credit standing, any lender in Canada will approve your mortgage. However, themortgage.com will achieve this quickly and conveniently.
In both cases there is one critical consideration which causes the failure of many such refinances. The new mortgage often requires a fraction of the cash flow previously needed to service the now consolidated debt. Many who go through this process not only absorb the cash flow savings into an improved lifestyle - they either re-incur debt that they paid out, or incur debt for which they now qualify - or both. It is important to approach such a consolidation/ re-combination of obligations with the clear and focused goal of applying all savings toward paying down the mortgage. Otherwise, the new mortgage will be a burden, rather than a solution.
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