The Smart Way to Hack Your Mortgage — Pay Less Interest on All Your Debt

Learn how to use low-cost mortgage money to eliminate high-interest debt like credit cards or car loans — and pay less interest across everything you owe.

The Concept

If you have credit cards, car loans, or lines of credit at 10%–25% interest, you’re paying a premium for borrowed money.Your mortgage, on the other hand, likely has an interest rate around 5%–6%.

Mortgage Hack #1: Use lower-cost mortgage money to pay off higher-interest debt.When you refinance, you can roll all your debts into one low-rate mortgage and save thousands in interest — while simplifying your finances.

Why It Works

Let’s compare:

• $25,000 on a credit card at 19% = $4,750 in annual interest.

• $25,000 refinanced into your mortgage at 5.5% = $1,375 in annual interest.

That’s $3,375/year in interest savings — just by shifting where your debt sits.

This strategy doesn’t erase debt; it repositions it into the lowest-cost vehicle possible. You then redirect the savings toward paying it down faster.

Example in Action

You owe:

• $400,000 mortgage @ 5.5%

• $15,000 credit card @ 19%

• $10,000 car loan @ 8%

By refinancing to a $425,000 mortgage at 5.5%, your monthly payments drop and you pay a fraction of the total interest. The trick is to keep your spending in check and use the monthly savings to accelerate mortgage payoff.

Pro Tip

When you “hack” your mortgage this way, set up automatic extra payments equal to what you were paying on your old debts. That keeps your payoff timeline short — and ensures the debt doesn’t creep back.

Call to Action

Want to see if this strategy works for your situation? Book a free “Mortgage Hack Review” at LaframboiseMortgage.ca and we’ll run the numbers to show your exact savings.