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Refinance or consolidate?

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  • Refinance or consolidate?


    I was on a plan to refinance my mortgages. One is a home mortgage which is a 15 year fixed rate mortgage, taken in 2010. The second is taken for renovating the home. To lower the interest rate, I thought, refinancing would be a better option. But, my friend told me that, debt consolidation would also help us in lowering the interest rate. So, I am now confused whether to refinance or consolidate the debts.

    In my search, I came to read that debt consolidation is taking out a new loan to pay off a number of liabilities and consumer debts and refinancing is combining different mortgages into a fist mortgage. Can anyone help me know the difference between the two?

    Which is more beneficial: consolidation or refinancing? And what about the interest rates and payment amounts? I searched a lot to find the best mortgage brokers in Canada, for a better advice. But, before consulting them, I want to hear the experience of people here. So, please share your experience and suggestions as soon as possible. Thank you.