Can I use my home equity to pay off high-interest debt, and what are the risks?

Jesse Lombardo-Bottema ✓ Verified
Sunlite Mortgage Corporation operating as Sunlite Mortgage · Caledonia, Ontario

Yes, there are multiple refinancing options to replace higher-interest debt with borrowing secured against your home. The important part is looking beyond the lower monthly payment. Extending debt over many years can mean paying more interest overall, and your home becomes security for that debt. I’d compare the total cost, monthly cash-flow improvement and repayment plan before deciding whether using your equity actually puts you further ahead.

Answered October 2026