Why This Matters Now
Alberta homeowners carry the highest non-mortgage debt in Canada – averaging $24,500 per person (Equifax Q2
2024). Meanwhile, Calgary home values have increased 7–11% over the past year (CREB 2024 mid-year data). This
creates an unusual situation: homeowners with substantial equity are struggling with high-interest payments.
We believe your home equity shouldn’t sit idle while credit card interest compounds at 20%. It should work as a
financial tool to reduce your monthly obligations and simplify your finances.
The Calgary Context
Here’s the math most Calgary homeowners face: $40,000 in mixed consumer debt costs approximately $1,200–1,500
monthly across multiple payments. Interest rates on credit cards approach 20%, while lines of credit hover around
8–9%.
That same $40,000 consolidated into a home equity loan at 9–10% becomes a single $600–700 monthly payment.
The savings are immediate and substantial – often $500–800 per month returned to household budgets.
The challenge? Banks have tightened lending criteria. With federal stress tests and strict debt-ratio requirements,
many homeowners who need consolidation most can’t access traditional refinancing. This particularly affects
Albertans who’ve weathered employment changes in our cyclical economy.
How Equity-Based Lending Works Differently
Traditional lenders focus on credit scores and income verification. Calgary Equity Loans evaluates primarily based on
home equity – a fundamental shift that opens doors banks close.
If you own a Calgary home worth $600,000 with a $350,000 mortgage, you have $250,000 in equity. That equity
position matters more than a credit score affected by high utilization or past challenges. Decisions happen in days,
not weeks. No income verification requirements that exclude self-employed Albertans or those between jobs.
This approach recognizes a simple truth: your home’s value is real, tangible security. It’s particularly relevant in
Alberta, where economic cycles mean good people sometimes face temporary financial challenges.
Your Next Steps
Calculate your position: Total your monthly debt payments and interest rates. If you’re paying more than 12% on
multiple debts and have home equity, consolidation likely makes sense.
Understand your equity: Most Calgary homeowners who purchased before 2020 have significant equity given
recent appreciation. Even with an existing mortgage, there’s often room to consolidate debt while maintaining a
healthy equity cushion.
Consider timing: With approximately 60% of Calgary mortgages facing renewal in 2025–2026 (CMHC data),
addressing high-interest debt now prevents larger problems when renewal arrives.
The Bottom Line
Debt consolidation through home equity isn’t complex. It’s about using an asset you already own to dramatically
reduce what you pay in interest. For many Calgary homeowners, it means cutting monthly payments in half while
simplifying finances to one manageable payment.
The financial relief is measurable – typically $500–1,000 monthly returned to household budgets. But the
psychological relief of managing one payment instead of five is equally valuable.
Debt consolidation isn’t right for every situation. If you’re unsure how it fits your overall financial picture, speak with a
trusted mortgage professional or financial advisor.
If you’d like a confidential review of your equity position, Calgary Equity Loans offers no-obligation consultations
that won’t affect your credit score. We’ll help you explore whether this strategy could reduce your monthly payments
and simplify your financial life.
Visit calgaryequityloans.ca or call 587-839-4876 to learn more.
Calgary Equity Loans specializes in equity-based lending solutions for Alberta homeowners.
