Do You Need A Second Mortgage?

When people think of second mortgages, it can typically mean one of two things. Primarily and often the case, it is an additional loan on an existing property with a mortgage. The rest of the time it may be applying for another mortgage on an additional property. Both situations come with nuances and we can explain.

A Second Mortgage Could Be Just What You Need

Contact us today to discuss your second mortgage
  • This field is for validation purposes and should be left unchanged.

Using a Second Mortgage to Extract Equity

You become eligible for a second mortgage on an existing property when you have built greater than 20% equity in the property. Basically this means that 1/5th of the value of the house can be considered paid off. Second mortgages in this scenario are a new and subordinate mortgage loan applied to the principal loan. The second mortgage lets you essentially cash out the equity in the home and use that cash for other purposes. You may be familiar with HELOCs (Home Equity Lines of Credit); HELOCs are a form of second mortgage.

We have built a specialization in second mortgages given the demographic in the Oakville region. Many members of our community are close to retirement with high value homes that are almost paid off with high current market valuations. This has given many residents the opportunity to take out highly affordable second mortgages to deal with life events such as children’s weddings, education, vacation home purchase, travel and much more. Speak with us today about getting a second mortgage on your Oakville home. Contact Us.

Second mortgages on the same property also let you consolidate debt. The unlocked equity can be used to pay down “high interest debt” and you can transfer that debt into a much lower interest, higher amortization second mortgage thus reducing the cost of that borrowed money.

Additional Property Purchase

Have your eye on a cottage or an investment property? We have made these desires a reality for clients across Ontario. Getting an additional mortgage when you already have financing outstanding on a property can be tricky sometimes. If you have the income and low debt, it is not as much of an issue. If for any reason you are facing challenges obtaining financing related to self-employment or a minor hiccup in credit rating or other circumstances – it can make getting financing complicated.

To deal with something like this you do not want to deal with an average bank employee or rookie mortgage adviser. You need someone that understands the ins and outs of mortgage regulation, nuances with insurers if you’re paying less than 20% down, as well as criteria used by underwriters to assess mortgage viability. Speak with us today and we will work on getting you into that additional property.

Key Requirements for a Second Mortgage

We advise our Oakville clients to who are looking for a second mortgage to pay attention to:

Credit Score

This is key to the equation the lender will apply to your ability to borrow.

Demonstrable Income

Whether salaried, retired or self employed – we need to be able to show income that will pay down the second mortgage.

Real Estate

Understand the value of the property – this will be a key criterion a lender will look at when considering the risk of lending additional funds to you. Understanding real estate valuation will also help you realize how much equity is available for the second mortgage.

Let’s Get Started With Your Second Mortgage Today

Contact us for more information about a second mortgage on your home
  • This field is for validation purposes and should be left unchanged.