How We Helped a Calgary Homeowner Avoid a Consumer Proposal by Using Their Home Equity

Jul 22

When we first spoke with our client—let’s call her Sarah—she was on the edge. Like many Calgary homeowners, she had been riding the wave of low interest rates for years, but now her mortgage was coming up for renewal. She was carrying over $50,000 in unsecured debt, making a $800/month car payment, and about to see her mortgage rate jump from 2.19% to 4.29%.

She was seriously considering a consumer proposal. But when she reached out to us, she still had one major thing going for her: about $150,000 in home equity.

Renee Huse, founder of Spire Mortgage Team in Alberta, met with her to review her options. Instead of locking into a higher mortgage rate and leaving her other debts untouched, we showed Sarah how refinancing could turn her entire financial picture around.

Sarah’s Debt Load Before Refinancing

At the time, Sarah’s situation looked like this:

Credit cards: $20,000
Line of credit: $15,000
Student loans: $15,000
Car loan: $800/month (approx. $30,000 balance)
Mortgage: $450,000, up for renewal at 4.29%

She wasn’t missing payments yet—but it was close. She told us she was juggling minimums, and it felt like she was working just to stay broke. Like many Calgarians, she thought her only way out was a consumer proposal.

But those debts were costing her more than she realized.

Interest Breakdown (Per Year)

Credit cards at 19.99%: $3,998
Line of credit at 7.5%: $1,125
Student loan at 5%: $750
Car loan at 6%: $1,800
Mortgage at 4.29%: $19,305

Total interest every year: over $26,900
And that’s just interest—not including principal or the emotional cost of being financially maxed out.

What Spire Did Instead

Sarah was about to renew her mortgage at 4.29%, and none of her other debt would’ve been touched. That would’ve meant:

Higher mortgage payments
All the unsecured debt still intact
No real breathing room

We stepped in and helped her refinance instead. By tapping into her $150,000 in equity, we structured a new mortgage at $520,000, with a 5-year fixed rate of 4.34%—a realistic conventional mortgage rate in Alberta right now.

That $70,000 in extra funds was used to completely eliminate:

All credit cards
Line of credit
Student loan
Car loan

The New Numbers

Her new mortgage payment came in at $2,786/month.

Compare that to her previous monthly obligations:

Mortgage: $2,170
Other debt payments: approx. $1,850
Total before refinance: $4,020/month

By consolidating everything into one structured mortgage payment, Sarah now saves:

$1,234/month
That’s over $14,800 every year in cash flow
Plus, her total annual interest cost dropped by about $4,400

The Bigger Picture: Confidence and Control

Sarah wasn’t just saving money—she was regaining control. Before we met, she felt trapped. She was afraid her only option was to walk into a trustee’s office and sign away her credit for the next five years. But that wasn’t the case.

By working with our team and acting before her renewal date, Sarah:

Avoided filing a consumer proposal
Reduced her monthly payments by over $1,200
Consolidated five debts into one
Held onto her credit
Started building a plan instead of just surviving

Now, instead of scrambling, she’s saving. Instead of stress, she has structure. And it all came down to choosing the right strategy—not just signing the renewal offer her bank sent her in the mail.

Give us a call or fill out an application at this link: https://spiremortgage.ca/apply-now and our team will get in touch with you to start building a plan that suits you.

Written by the Spire Mortgage Team, Alberta’s strategic mortgage planning experts.
Learn more: https://spiremortgage.ca