A third mortgage is a type of mortgage that someone who has an existing primary and second mortgage can get on the same home or property.
Most people who take on a third mortgage do so when the penalty for paying off the primary and the second mortgage is not reasonable. When this is the case, it makes more sense to simply obtain another mortgage.
What is a Third Mortgage?
Just like other mortgages, a third mortgage is a loan a homeowner can borrow from a lender based on the value of the homeowner’s property. It is called as such because a homeowner who applies for a third mortgage has an existing second mortgage and a first mortgage on the same property. As the third loan in a series of mortgages, a third mortgage is subordinate to existing ones. This means that in the event of any issue with payment or defaulting on payments, the first mortgage and second mortgage gets first and second priority when it comes to getting paid. A third mortgage will also require monthly payments just like other mortgages.
What Are the Benefits of a Third Mortgage?
Mortgages are applied for by borrowers because of the pros that they offer. Funds from a mortgage can be used to buy a new property or make improvements to an existing one. In this light, a third mortgage is useful because it gives the borrower supplementary funds that can be used however which way the borrower deems fit. This means that the money from a third mortgage can be used for paying for school tuition, funding a home renovation, financing a dream vacation, helping pay for medical expenses, and more. People who have valuable property may be able to secure huge amounts from lenders, at times possibly reaching up to 85% of the home’s value if circumstances permit.
Why Get a Third Mortgage?
If you’re a homeowner who has both primary and second mortgages and need access to your home equity, getting a third mortgage might be a better option for you. Compared to applying for other types of loans that come with high-interest rates, a third mortgage is a smarter financial option for those who can qualify for it.
Applying for a Third Mortgage
Third mortgage application is quick, convenient, and easy at Homebase Mortgages. You simply fill up our online form with your application and our associates will contact you after your application has been received and reviewed. You can expect to be contacted via email or mobile for clarifications on the information you’ve provided as well as other important details needed for your application
Homebase Mortgages is one of the few Canadian firms that can arrange third mortgages for homeowners. The third mortgage can be arranged in such a way that it can mature with one or both existing mortgages to save on penalty fees.
If you’ve been turned down by a bank, faced power of sale, currently self-employed, have low income, or bad credit, contact us at Homebase Mortgages and let us help you pick a financial solution for your needs.