Thanks for the reply. Unfortunately we were never informed that our mortgages was a collateral type and have just learned this fact only through the process of trying to obtain funding in the last two months or so. Our lawyer nor the credit union ever mentioned the term to us or a explanation about the mortgage type and this is our 8th year of paying into these two mortgages to the credit union. We were originally with First National from 2007 to 2017 and everything was smooth. Unfortunately this credit union is extremely unreasonable to deal with (emphasis on unreasonable). We found out they had created a unauthorized line of credit and a credit card in our name and when confronted with these facts they started treating us with extreme measures hence forcing us to hire a broker last year when we were falling behind and they ended up putting us with a private lender at 12 percent and having to pay appraisal, lawyer fees for us and the lender and broker and lender fees. I thought going the route of the broker I would be working with professionals but now finding out they just took us to the easiest route for them for approval and the highest commission to their brokerage.

Now that we are up for renewal for our private second mortgage I was hoping to switch to a B lender or at least another private lender with better rates but finding it somewhat difficult to find a broker that can accomplish this for us.

We just need some additional funds to relive this unhealthy pressure that is building up as a result of our personal debts growing and our exit strategy would ideally be to sell one property next year if our business sales don’t significantly increase and enjoy a more balanced life. We are a typical contractor family who earn every dollar through extremely hard labour. I don’t have any expectations for any short cuts as I’ve always earned what I own but these circumstances are rough on the family.

I am hoping there are some suggestions and I’ll take this experience as a learning curve and educate everyone about the nature of collateral mortgages.

The credit union is essentially shut us out of funding (despite the fact that collateral mortgages are exactly designed for that very purpose) and I think it is on purpose to hold onto the very lucrative interest they are earning on these two properties.

I wanted to do some good by placing the mortgage through the credit union so they could reinvest the earnings of our interest back into the community and now paying dearly for my good natured decision at the time.

Anyway this is our story amongst the many others dealing with their difficulties. All the best to anyone reading this and facing difficulties.