15 Oct

10 Ways to Plug Money Leaks.


Posted by: Joni Ferguson

Cartoon Illustration Of A Drain Plug Stock Illustration - Download Image  Now - Sink Plug, Bathroom, Cartoon - iStock     10 Ways to Plug Money Leaks.

It can sometimes be hard to keep track of your finances. Fortunately, we have some tips to help you review your financial situation and plug unwanted money leaks!


  1. Be Wary of Impulse Spending: While it can be easy to think that picking up a few extra items here and there won’t affect your overall budget, it does. When you make a purchase of $10 here or $8 dollars there, it all starts to add up! This is why it is so important to track your spending at grocery and convenience stores or gas stations. Make a list or be aware of what you intend to purchase – and stick to it.
  2. Carry Cash: It can be way too easy to spend money unintentionally or over budget when you’re simply swiping your credit card. For some, taking spending money out as cash is a much easier way to manage your budget and know when you have used up your weekly funds!
  3. Examine Your Bills: As money leaks go, the best way to avoid spending extra funds or paying too much for a service is by examining your bills. Perhaps there are some that you can get rid of entirely or some you can reduce (by changing your phone plan, for example).
  4. Ask The Question: If you’re making a new purchase (whether a new internet bundle or car), it is a good idea to always ask “is this the best you can do”? In some cases, you may get a further discount. In addition, be sure to always do your research before any large purchases.
  5. Manage High-Interest: One of the biggest places you will find financial leaks are with high-interest rates. If debt is getting in the way of your cash flow (and you still have equity in your home), you may be able to refinance your mortgage and consolidate your debt for one easy monthly payment and a better rate.
  6. Renew With Confidence: When you receive the letter from your lender about your mortgage renewal, consider shopping the market or reaching out to me before signing the renewal. I may be able to get a lower interest rate or better mortgage terms.
  7. Renovate vs Relocate: If you’re finding yourself falling out of love with your home, consider a RENOVATION! It is much more cost-effective than moving and can be a great way to breathe new life into your spaces.  I can help you look into a HELOC (Home Equity Line of Credit)
  8. Don’t Leave Money on the Table: Be sure to take advantage of rebates and incentives at your disposal! From first-time homebuyer tax credits to energy rebates, there are plenty of opportunities.
  9. Change Your Mortgage Payments: Depending on your monthly cash flow situation, you might also want to consider switching up your mortgage payments. Moving from weekly to biweekly can help you reduce your overall monthly bills. If you have extra income, moving to a weekly or accelerated biweekly payment schedule can help you pay off your mortgage faster.
  10. Know Your Pre-Payment Penalties: Avoid spending unnecessary money on your mortgage by knowing your pre-payment terms and penalties! If you ever find yourself needing to get out of your mortgage early, you’ll want the option of pre-payment.

If you’re looking to plug money leaks in your finances,  you can reach out to me to discuss your mortgage payments, debt consolidation and more.

#DLC #brokersforlife #cochranemortgagebroker


Written by the DLC marketing team 🙂

1 Oct

Second Mortgages: What You Need to Know.

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Posted by: Joni Ferguson

Second Mortgages: What You Need to Know.

One of the biggest benefits to purchasing your own home is the ability to build equity in your property. This equity can come in handy down the line for refinancing, renovations, or taking out additional loans – such as a second mortgage.

What is a second mortgage?

First things first, a second mortgage refers to an additional or secondary loan taken out on a property for which you already have a mortgage. This is not the same as purchasing a second home or property and taking out a separate mortgage for that. A second mortgage is a very different product from a traditional mortgage as you are using your existing home equity to qualify for the loan and put up in case of default. Similar to a traditional mortgage, a second mortgage will also come with its own interest rate, monthly payments, set terms, closing costs and more.

Second mortgages versus refinancing

As both refinancing your existing mortgage and taking out a second mortgage can take advantage of existing home equity, it is a good idea to look at the differences between them. Firstly, a refinance is typically only done when you’re at the end of your current mortgage term so as to avoid any penalties with refinancing the mortgage.

The purpose of refinancing is often to take advantage of a lower interest rate, change your mortgage terms or, in some cases, borrow against your home equity.

When you get a second mortgage, you are able to borrow a lump sum against the equity in your current home and can use that money for whatever purpose you see fit. You can even choose to borrow in installments through a credit line and refinance your second mortgage in the future.

What are the advantages of a second mortgage?

There are several advantages when it comes to taking out a second mortgage, including:

  • The ability to access a large loan sum (in some cases, up to 90% of your home equity) which is more than you can typically borrow on other traditional loans.
  • Better interest rate than a credit card as they are a ‘secured’ form of debt.
  • You can use the money however you see fit without any caveats.

What are the disadvantages of a second mortgage?

As always, when it comes to taking out an additional loan, there are a few things to consider:

  • Interest rates tend to be higher on a second mortgage than refinancing your mortgage.
  • Additional financial pressure from carrying a second loan and another set of monthly bills.

Written by the DLC Marketing Team

I am available to chat any time if you have any questions,  you can call, text or email. I am more then happy to discuss any concerns you may have.