Short answer
Sometimes. A MIC or private lender may offer a term that brings the second mortgage close to the first mortgage’s maturity date. Coordinating the dates can allow both mortgages to be reviewed together without breaking the first mortgage early. The lender must agree to the requested term, and the borrower still needs a realistic refinance or repayment plan. Matching maturity dates improves timing; it does not guarantee that an A or B lender will consolidate both mortgages later.
Why matching dates can help
A homeowner needs a second mortgage today, but the first mortgage does not mature for 18 months. Taking a standard twelve-month second creates a renewal decision six months before the first can be reconsidered without an early payout.
If a lender offers an 18-month second, both debts can reach the same review window. The broker can then assess one refinance based on the current income, credit, property value and lender policies.
What must be confirmed
- The exact first-mortgage maturity and payout terms.
- The second lender’s available term.
- Whether the second is open, partially open or closed.
- The projected balances at the common date.
- The income, credit and property milestones required for the intended lender.
Some MICs publicly offer terms extending beyond twelve months. Liahona MIC, for example, describes open or closed terms from six to twenty-four months, subject to its current guidelines. Liahona MIC broker guidelines.
The risk of treating the date as the plan
The date is only useful if the client’s file should improve before then. If no income document, credit milestone, debt reduction or sale is expected, synchronized maturity may only synchronize two payout problems.
Request a mortgage second opinion through SimplifyMortgage.ca to test the projected combined balance and the future lender requirements before selecting the term.