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Monthly Newsletter April 2020

CoryVance • April 10, 2020

As I write this month’s newsletter I hope you and your families are healthy and making the best of the current environment. No blog or announcement would be complete without a sincere THANK YOU and appreciation for all health professionals and first responders who are tasked with one of the most important jobs in keeping those around us healthy. I also wanted to thank those who are now considered Essential Service providers for everything they are doing each day to support us. As we have learned things can change quickly and what we once thought was important may have changed as we all focus on our health and families during this time.

I think we can all try to play a part in some small way as we help each other to make it through. Whether it is helping someone that may find it difficult to get out or even making that call to check-in. Small deeds pay massive dividends. On that note I wanted to let you know, as past clients, that if you have any questions on anything finance or mortgage-related to please reach out. I am always happy to provide any education, advice or insight on financial matters.

For the past two weeks, the top question I am getting is Mortgage Payment Deferrals. Judging by the mass outcry of payment deferral requests, approaching 500,000, I will try to cover here in a few key points:

A payment deferral is NOT a waiving of payment or a free gift from your lender.
Payments deferrals should only be requested if you have been impacted or will be impacted by COVID-19.
There will be additional interest costs in deferring your payments (interest on interest). Your mortgage payment WILL increase at some point to pay back these deferred payments. This payment increase will occur at one of three times: 1) The end of the payment deferral period 2) The end of the mortgage maturity or 3) The end of your mortgage amortization. The longer you wait the bigger the increase in your payment and the more the interest this will cost you. However, NONE of this matters if you do not have the income or funds to make your payment so please take advantage of this option before your payment goes past due.
This WILL NOT impact your credit score as long as you contact your lender and have received the approval to defer your payments. DO NOT just stop making payments for 6 months.
Requests to defer payments will vary from lender to lender but remember they may want to know if you have been impacted by COVID-19.
Some lenders have set up online forms to get further info or make the request to defer payments. This will be better than calling your lender directly. Contact me if you want your specific lender’s info.

Once again, every one situation is different so I would encourage you to reach out to discuss your situation and develop a strategy to get through this period and understand the impact of the deferrals on your mortgage payment.

The next top question is to review the Government of Canada announcements and significant resources to help Canadians which now total more than $100 billion dollars.

Click here for the link with further details:
https://www.canada.ca/en/department-finance/economic-response-plan.html
Within this page, you will find details on the Canada Emergency Response Benefit (CERB). This one will be the one that most should focus on especially Self Employed. The start date to apply for this benefit is currently set on April 6 and will be phased. You should apply to access it through your online CRA account. If you do not have this set up please start NOW because it may take 5-10 business to get a code to get access to the online account.

As always if you have any questions Mortgage Payment Deferrals, Mortgage Rates or anything mortgage please reach out.

Stay Well,
Cory

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Everything You Need to Know About Second Mortgages

By Cory Vance • October 21, 2025
What Is a Second Mortgage, Really? (It’s Not What Most People Think) If you’ve heard the term “second mortgage” and assumed it refers to the next mortgage you take out after your first one ends, you’re not alone. It’s a common misconception—but the reality is a bit different. A second mortgage isn’t about the order of mortgages over time. It’s actually about the number of loans secured against a single property —at the same time. So, What Exactly Is a Second Mortgage? When you first buy a home, your mortgage is registered on the property in first position . This simply means your lender has the primary legal claim to your property if you ever sell it or default. A second mortgage is another loan that’s added on top of your existing mortgage. It’s registered in second position , meaning the lender only gets paid out after the first mortgage is settled. If you sell your home, any proceeds go toward paying off the first mortgage first, then the second one, and any remaining equity is yours. It’s important to note: You still keep your original mortgage and keep making payments on it —the second mortgage is an entirely separate agreement layered on top. Why Would Anyone Take Out a Second Mortgage? There are a few good reasons homeowners choose this route: You want to tap into your home equity without refinancing your existing mortgage. Your current mortgage has great terms (like a low interest rate), and breaking it would trigger hefty penalties. You need access to funds quickly , and a second mortgage is faster and more flexible than refinancing. One common use? Debt consolidation . If you’re juggling high-interest credit card or personal loan debt, a second mortgage can help reduce your overall interest costs and improve monthly cash flow. Is a Second Mortgage Right for You? A second mortgage can be a smart solution in the right situation—but it’s not always the best move. It depends on your current mortgage terms, your equity, and your financial goals. If you’re curious about how a second mortgage could work for your situation—or if you’re considering your options to improve cash flow or access equity—let’s talk. I’d be happy to walk you through it and help you explore the right path forward. Reach out anytime—we’ll figure it out together.

Reposition Your Debts Through Mortgage Financing

By Cory Vance • October 7, 2025
If you’re a homeowner looking to optimize your finances, consider taking advantage of your home’s equity to reposition any existing debts you may have. If you’ve accumulated consumer debt, the payments required to service these debts can make it difficult to manage your daily finances. A consolidation mortgage might be a great option for you! Simply put, debt repositioning or debt consolidation is when you combine your consumer debt with a mortgage secured to your home. To make this happen, you’ll borrow against your home’s equity. This can mean refinancing an existing mortgage, securing a home equity line of credit, or taking out a second mortgage. Each mortgage option has its advantages which are best outlined in discussion with an independent mortgage professional. Some of the types of debts that you can consolidate are: Credit Card Unsecured Line of Credit Car Loan Student Loans Personal or Payday Loans Most unsecured debt carries a high interest rate because the lender doesn't have any collateral to fall back on should you default on the loan. However, as a mortgage is secured to your home, the lender has collateral and can provide you with lower rates and more favourable terms. Debt consolidation makes sense because it allows you to take high-interest unsecured debts and reposition them into a single low payment. So, when considering the best mortgage for you, getting a low rate is important, but it’s not everything. Your goal should be to lower your overall cost of borrowing. A mortgage that allows for flexibility in prepayments helps with this. It’s not uncommon to find a mortgage at a great rate that allows you to increase your payments by 15% per payment, double your payments, or make a lump sum payment of up to 15% annually. As additional payments go directly to the principal repayment of the loan, once you’ve consolidated all your debts into a single payment, it’s smart to take advantage of your prepayment privileges by paying more than just your minimum required mortgage payment, as this will help you become debt-free sooner. While there is a lot to unpack here, if you’d like to discuss what using a mortgage to reposition your debts could look like for you, here’s a simple plan we can follow: First, we’ll assess your existing debt to income ratio. We’ll establish your home’s equity. We’ll consider all your mortgage options. Lastly, we’ll reposition your debts to help optimize your finances. If this sounds like the plan for you, the best place to start is to connect directly. It would be a pleasure to work with you.

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