Are Second Mortgages Hard to Get?

While financing your home you’ll be able to find many different options and here we’re going to talk about second mortgages. You shouldn’t have to take out a home equity loan if you can take out a second mortgage, and just because your credit isn’t the best doesn’t mean you can’t get one. Here we’re going to talk about how difficult it can be to get one, how to use a mortgage broker to get the most out of your terms and what to use it for.

What Affects Your Chances to Get a Second Mortgage?

There are three things that will count against or for you when you’re trying to get a second mortgage:

FICO: Your FICO or credit score is one of the main indicators of what kind of borrower you are. This means that you’re going to need a good credit score to get a second mortgage. If you have anything below 600 you’re going to want to consider credit repair or credit building before you apply. You may be able to get your financing but it could be at terms that just don’t fit with what you need.

Income: Your income is important to making sure that you can repay your loan. If you’re self or seasonally employed you’re going to need a Toronto mortgage broker to help you get the best mortgage possible. We’ll help you get it right the first time!

Borrowing History: If you’ve borrowed against your home before (this is technically your fifth mortgage for example), recently or if you’ve had slow pays and no pays on your record you’ll definitely want to make sure that you get a mortgage broker on your side to get the right terms.

Why Are Mortgages Hard to Get in the First Place?

Mortgages, and most financing for that matter, can be hard to get. Lenders don’t want to take a risk that they won’t be able to stretch out the life of the loan and get a lot of interest back over time. They don’t like lending to people who pay off their debts quickly, and they don’t want to lend to people who pay off their debts so slowly it doesn’t make a dent. Most of us fall more towards one side or the other and it can be hard to get a second mortgage. This is when you need to think about getting to work with one of our Toronto mortgage brokers.

What Does a Mortgage Broker Do?

Mortgage brokers will not only help you get a good second mortgage, but they’ll help you look over everything that you can do to improve your credit and help you know if now is the time to borrow. Everyone has their own unique situation, and we know that there are no “one size fits all” solutions with financing. Why work with one lender when you can work with several different ones that will compete to give you the best deal? 

Let us help you find the right loan, at the right rate and help you save money!

Can You Get Private Second Mortgages?

private mortgage lenderIf you want to be able to get a private mortgage as part of a Canadian home refinance, you can. A private mortgage isn’t limited to buying a home out the gate, but you should talk to one of our Toronto mortgage brokers before you get started. You’re going to need the help to make sure you find a good private lender; there are many lenders that make these kind of loans and sadly a good deal of them are terrible to work with. You’ll also need some equity in your home to take out this kind of loan, so let’s get started.

What is Equity?

Equity is how much you actually own in your home when everything is said and done. So whatever debts you hold subtracted from the appraised value of your home will let you know how much equity you have. Here’s a good example:

The house you own is worth $500,000 (one can dream right?), but you still haven’t paid off your mortgage. You owe $100,000 still on your first mortgage, and that means that you have $400,000 in equity. This is great! Only 20% of your equity is tied up with debt, meaning 80% of your home is straight up cash. You will need to know that you can only borrow 80% of what you own; this means that you’re going to be able to borrow up to about $300,000 out of your whole home.

How do Private Lenders Work?

Private lenders will loan money to virtually anybody, which is awesome! Even if you have abd credit you’re still going to be able to get a second mortgage from them. They work just like any other kind of mortgage lender, but where they get their money is a little different. Banks and private lenders both have investors, but private lenders have individuals backing them. Their lending criteria isn’t as strict but you’ll still have to fill out some forms and pledge some of your equity as collateral.

Isn’t This Just a Home Equity Loan?

One of our Toronto mortgage brokers will be able to better explain all of this to you in person, but basically yes. This is a home equity loan. Second mortgages work off how much equity you have in your home and they’ll help you get all the money you need to get things done. You shouldn’t be trapped in a bad situation just because you may have poor credit or no credit. With the right private mortgage lender you’re going to be able to get the money you need.

Working with a Broker Saves You Money

When you work with one of our Toronto mortgage brokers you’re going to save money. We know where to look to get the best mortgages and we’ll help you save. From getting the lowest interest rates to getting the highest loan to value ratio for your next mortgage, we’ll work hard to help you. Contact us today and see what we can do for you.

Is it Time to Refinance with a Second Mortgage?

2nd mortgageIf you’re thinking about refinancing with a second mortgage, now’s the time to talk to one of our Canada mortgage brokers. Trying to refinance on your own you’re going to come up against different lenders with different things to offer, but we’ll help you find the deal that’s right for you. With interest rates at the lowest they’ve been for almost a hundred years, we’ll help you understand which lender is offering the best deal and to know if now is the right time for you to refinance.

What is Refinancing, Anyway?

Refinancing is where you change the way your loan works or you get a second mortgage on your home to pay off your bills. Some people are able to refinance their first mortgages to a lower rate or with a lower monthly payment – others need to take the equity in their home and exchange it for cash.

If you’re trying to pay off a bulk of credit cards for example, a large lump sum payment for less than you owe might be accepted to clear the debt. You’ll pay 75% of the bills all up front, then all you have to worry about is paying back your mortgage at a 4% interest rate. This can save you big over the long term, but only if you do it right.

Why Are Lower Interest Rates Important?

Every point in interest that you have to pay is another thousand dollars that your lender earns as a profit. There’s nothing wrong with making a little profit off loaning money, but you’re always going to want to make sure that you’re getting the best rate. When you work with one of our Toronto mortgage brokers we’ll help you understand how much you can save with different lenders, we’ll help you understand all of your options.

Can You Afford to Refinance?

You need to have a certain level of equity in your home before you think about getting a second mortgage or a home equity loan. If you don’t know how much equity you hold, call your lender and have a chat. You can also find out by looking at your latest monthly statement. The more equity you have free in your home the better off you’re going to be.

Is it Right for You?

If you’re being swallowed up by your bills and you want a way to get on the road to being debt free, refinancing with a second mortgage could be the right choice for you.

It’s important to note that people who get consumer credit counseling while in the process of refinancing and consolidating their debts are much more successful with the process. If you’re looking for help to get your mortgage under control and move on with your life, give us a call. We’re Toronto mortgage brokers and we understand what you need to do to get the best rate on your next mortgage. Contact us today and see what we can do for you.

How to Save Money On Your Second Mortgage

Saving money on your second mortgage means finding a good Toronto mortgage broker; you’ll need a skilled negotiator on your side to make sure you’re making the most of your second mortgage. If you want to save money, you need to know how mortgages work. Here we’re going to talk about why you need to find a good deal, how to find a good deal and how to make sure that it’s also the right deal. This means understanding how they work and why one is right for you. Let’s get started and peek behind the curtain!

Why are Second Mortgages More Expensive?

Second mortgages on average cost more than a comparable first mortgage. This is because the mortgager, or the lender, is taking a big risk hoping that they will be able to recover the money down the line. You could end up defaulting on your first mortgage and then they may never be able to get their money back. You’ll want to talk to your Toronto mortgage broker before you borrow any money from a lender. They’ll be able to help you figure out if a lender is giving you the best deal or not.

What Can You Use a Second Mortgage For?

Second mortgages can be used for all kinds of things, but you’ll want to make sure that you’re using it for the right reason. Debt consolidation can go a long way towards making sure you can save money over the long run. You’ll want to save as much in interest as you can before you sign on for a loan. You can also put the money towards any credit cards or even your first mortgage if you want to save on interest.

Another common thing people use these for is reinvesting in their home’s equity. You’ll be able to upgrade your home and then get more money out of it when you sell it. You can use it for whatever you like, but make sure it’s a real investment like education or upgrading your home. If you put it towards your debt, make sure that your existing debt’s interest rate is higher than the new one you would take on. There’s no sense in getting a loan at 20% to pay off a 10% debt.

How to Get the Right Second Mortgage

You’ll want to first talk with a Toronto mortgage broker. They’ll be able to help you find the right mortgage for you; from private lenders to conventional ones you’ll need to know which one is the right one for you. They’ll talk to many different lenders on your behalf, finding out which one is the one that will work best with your goals. You’ll have to think about who is going to give you the best interest rate, the best mortgage terms and the best deal overall. Without a Toronto mortgage broker you can have your work cut out for you, so make sure you consult a professional first before you get started! To learn more about our great rates on second mortgages, click here!

Should You Refinance With a Second Mortgage?

2nd mortgageHaving a second mortgage or home equity loan can be a real pain, but trying to refinance your mortgage can be even worse. If you’re not sure if you should refinance with your home equity loan, you’re not alone; over half of all Canadians will try to refinance 2 mortgages at the same time within the first 15 years of owning a home. It can happen to just about anybody, and here we’re going to talk about how we can help you as Toronto mortgage brokers to get the best rate. Let’s get started and see if it’s right for you.

Is it Time to Refinance?

You’ll want to first start with the question of whether or not it’s time for you to refinance. If you already have a first and a second mortgage, you may have to deal with sublimation (which is never fun). When you work with one of our Canada mortgage brokers you’ll have someone to help you talk with your lender, someone that can help you find out if your lender will be open to a refinance. Refinancing with a second mortgage is a lot different than refinancing with a first mortgage, so you’ll be in for a wild ride. You’ll want expert help to tackle the unique challenges a refi with a second mortgage can present.

Can You Afford to Refinance?

You need to know if mortgage refinancing is really a feasible option – after all, it’s not for everybody. You’re going to have to hop through some serious hoops to find out if this is really the right way for you to go. Everyone is different, so what’s right for someone else may not be right for you. Talk with us and find out more.

How Much Will it Cost?

Refinancing with a second mortgage will generally cost you closing and origination costs, plus administrative fees. So whatever you paid to close your last mortgage, plus an extension on your mortgage. You may even refinance it so you have less time to pay off your mortgage – which sounds like a bad idea but for some it can work really well.

Expect to pay $5k (this can vary) to refinance, plus whatever changes in monthly payments and interest that are part of the refinance. You’ll want to be very picky about when you choose to refinance your mortgage – after all, you don’t want to leave a long and perilous trail behind you of closing costs, always trying to chase that lowest percentage point.

Let Us Help

When you need to save big on your mortgage, let us help. We’re here every day and we can show you what a Toronto mortgage broker can do for your second mortgage refinance. You may not even have to refinance at all – it just depends on your circumstances. We can’t help you though if we can’t talk to you, so call us today and see the difference that we can make for your second mortgage!

Do You Need a Canada Mortgage Broker for Second Mortgages?

2nd mortgageWhen most of us think of working with the Canada mortgage broker, we think about getting our first mortgage or buying a house for the first time. But did you know that a mortgage broker can help you renew your mortgage, renegotiate, or help you find the best rate for your second mortgage or home equity loan? It’s true! It’s important to make sure that you are always getting the best deal; after all, a percentage point of interest can rack up to tens of thousands of dollars over the life of your mortgage.

Have Someone in Your Corner

Having a friend in the mortgage business is invaluable. Even people who’ve been in the industry for years still don’t know everything there is to know about mortgages – much less stay up on all the latest trends. Having that support network there for you, that safety net, is going to help save you time, money and sanity. We’ll help you compare different mortgage lenders make sure that you save the most possible. Always work with a Canada mortgage broker like us to make sure you’re getting the most from your mortgage.

You Don’t Pay Us!

With the most important things you should know about Toronto mortgage brokers is that you don’t pay us. We’re paid out of the closing costs of the mortgage, a finder’s fee if you will. This means that no matter what, as long as we do our job and find the best rate, we get paid. We don’t take kickbacks from the lenders to choose them, we work for you – we’re not loan officers, and we’re not here to judge. If you need help, that’s what we’re here for.

Compare and Save

When you compare different lenders, you save. Lenders always give their newest customers the best deals, so if you’ve been doing business with the same lender for a while, they have zero incentive to give you the best deal. If you want to be able to save big bucks it’s time to start looking at other lenders is an option. Customer loyalty is important of course! But why stay true to a lender that’s not giving you the best deal? We can negotiate with your current lender, a new lender, or anything in between to make sure you’re getting the best rate possible. Just because it’s a second mortgage doesn’t mean you have to get some return business.

We’ll Help You Understand Everything You Need to Know

Like mentioned earlier, second mortgages, first mortgages, any kind of mortgage can be difficult to understand. You need that extra help to make sure that you’re making the most of your next loan. Don’t get stuck with a bad second mortgage just because you didn’t know any better! Matter what kind of mortgage or trying to get, will be there through every step of the process. We’ll help you understand introductory rates, balloon payments, and everything else that can make your life miserable when trying to find the right mortgage. Don’t get stuck in a rut, let us help.

Second Mortgages: What You Need to Know

2nd mortgagesBefore you start looking at home equity loans, or Canadian second mortgages, there are some things you need to know. When you choose us as your Toronto mortgage broker we’ll be able to help you understand everything you need to know – but until then, we’re going to go over some super important points here. From understanding the differences between a home equity line of credit and a second mortgage, to what you can expect from your terms when you shop on your own, we’ll cover it all here. Let’s get started!

What is a Second Mortgage?

A second mortgage and allows you to turn the equity in your home into cash you can use – remodel your home, buy a car, pay for your kids Uni courses, just make sure that whatever you’re using it on will give you some sort of return. A second mortgage is not free money and you’ll want to be very careful about how you spend it. Working with one of our Canada mortgage brokers, you’ll be able to figure out what’s right for you. You may not even need a second mortgage – you might just need to refinance your first one.

What is a Home Equity Line of Credit?

A home equity line of credit is different from a second mortgage, instead of getting one big lump sum payment like you would with a second mortgage you’ll get a line of credit instead. You’ll have a special checkbook or credit card to draw on your home’s equity. You’ll still want to keep careful track of everything, just like you did with your checking account or credit cards. It can be easy to lose track so make sure you make the effort!

How Much Equity do You Have?

But before you choose between these two forms of equity loans, you’re going to need to figure out how much equity you have in your home. Start by looking at the latest appraised value of your home. From here, you’ll need to subtract any liens or mortgages you have against the property – after that you’ll know how much equity you have. But the fun doesn’t stop here!

You can only borrow up to 80% of your available equity, but no one ever wants to borrow this much of their equity! You’ll need to be very careful of borrowing against your home – you never know when you’re getting the wrong end of the stick.

So, Which One is Right for You?

Figuring out which one is the right one for you can be difficult – and that’s why you should work with us! When you work with us, you’ll work with some of the best Toronto mortgage brokers around. We’ll help you figure out how much equity you have, how much you can borrow, and if now is the right time to borrow. After all, it takes years to get as much equity as you have, you need all the facts to make the best decision for you.

Visit our second mortgage page today, to learn more about how we can help you: http://www.homebasemortgages.ca/second-mortgage/

How to Choose the Right Mortgage for You

2nd mortgageNo one wants to pick the worst mortgage, but what do you need to consider when you’re looking at second mortgages, and mortgages in general? As Toronto mortgage brokers we know that there are many traps that people can fall into when they’re trying to find the mortgage that’s right – and when you don’t know what they are you can easily end up paying a lot more than you should have to. Here we’re going to go over what you need to know, so let’s get started.

What Term is Right for You?

Mortgage terms aren’t exactly what you might think, it’s not what you’re paying each month, but actually the length of time you have to repay the loan. Think of it like the ticking time bomb; can you disarm it quickly or do you need a lot of time to pay it off? Things like that can put a serious crimp in how long and how much you’re going to have to put into your second mortgage or your first one, so be careful!

Thinking Ahead Saves You Time and Money

Thinking ahead will help you figure out if this is the right mortgage for you. If you’re just getting a second mortgage to fix up your home so you can sell it in a year, you’re not going to want a 5 year mortgage term – but if you’re not sure if your home is going to sell you may want to. One of our Toronto mortgage brokers will be able to help you anticipate problems down the road.

Fixed or Variable Rate Mortgage?

A fixed rate mortgage is going to be great for people that need to take their time repaying, it’s one of those in for the long haul sort of things – but if you don’t see yourself staying in place or you’re going to repay quickly you may want to look at a variable rate mortgage. You’re not going to want to pay this off slowly either, because once the term comes due you may have a balloon payment to contend with. Again, one of our Canada mortgage brokers will be able to help you figure out which one is right for you.

We’ll Help You Shop Around

Everyone can use a little help shopping around, and we’ll help you understand what your options are. We’ll go to different lenders to make sure you’re getting a great price on a mortgage that fits your current and future financial needs; why deal with a surprise if you don’t have to?

Call Today

From figuring out how much you can spend to how much you’ll spend if you select a specific type of mortgage, we’ll be there through every step of the process to make sure your next mortgage is successful and benefits you first and foremost. Why spend more than you have to when you can get a 2nd mortgage that’s tailored to your needs? Let us help you today!

Are You Ready for a Second Mortgage?

Before you even start planning what you’re going to do with a second mortgage, you need to make sure that you’re ready for one. How much equity do you have in your home? What does your credit look like? Do you have the income to support another lien against your home? These are the kinds of questions lenders will be asking, and so should you! As Canada mortgage brokers we’ve seen it all, and we’ll be able to help make sure that this is the right choice for you. After all, that’s what we’re here for!

What Is a Second Mortgage?

A second mortgage, also known as a home equity loan, allows you to tap into the equity you are you having your home – think of it like raiding the piggy bank without having to break it open. You want to have plenty of equity on hand before you take out a second mortgage; after all, if you’re swimming in debt, the last thing you’re going to want is more debt. If you’re looking for financing solutions but you’re not sure this is right for you give us a call. We’re Toronto mortgage brokers that know how to get you the best deal.

Isn’t a Second Mortgage Risky?

You know what they say, “With great risk comes great reward”; but who wants to risk their home? When it comes down to it you need to know that you’re safe. When you work with us, we’ll make sure that you know that this is the right option for you.

But don’t get us wrong, sometimes the risk is well worth it. If you’re in a good place financially, or have plenty of equity to spare, home equity loans can help you get what you need.

Who is Eligible for a Second Mortgage?

The more equity you have in your home the better. If you’re still paying off your first mortgage, that’s okay; you will need to make sure that you pay off as much of your first mortgage is possible before you consider getting a second mortgage. You don’t look too desperate to lenders – because if you do they’re going to hike your interest rates, give you unfair terms, and make the process very unpleasant in general.

If you’re not sure about your eligibility, call us! We’re here to help you through every step of the mortgage process, if you can’t find the right loan you don’t pay.

Get a Lower Interest Rate

Getting the lowest interest rate possible on your second mortgage is important – the lower your interest rates are the less you’re going to have to pay in the long run. As Canada mortgage brokers, will be able to help you understand if this is a good deal in the long run or the short run. It never hurts to have a little help does it? Visit our 2nd mortgage page today and see how you can save, let us handle the heavy lifting for you.

Is the Paperwork for a Second Mortgage Hard?

2nd mortgage lenderIf you’ve been thinking about getting a second mortgage but you’re not sure how hard it’s going to be, you’ve come to the right place! Here we’re going to go over everything you need to know about the process and what you can do to maximise your mortgage application. You’ve worked for years to save up all that worth in your home, you don’t want to blow it overnight do you? Of course you don’t, and when you work with us we’ll make sure you’re getting the best mortgage for you. Let’s look over how the process works and how you can make it work to your advantage.

What is a Second Mortgage?

A second mortgage, or home equity loan, is just like the mortgage you took out the first time to buy your house. You’re going to need the following paperwork:

ID – Having a driver’s licence or ID card is the first step to getting a second mortgage. Your lender should do due diligence to make sure that you’re you before you take out another mortgage on your property. Be very weary of anyone that doesn’t before they start looking at your mortgage application.

Proof of Assets – If you have stocks, bonds, property, an annuity, bank accounts or anything else you want considered as part of your income, you’ll need to bring it with you. This is separate from what you’ll need to do to prove your employment. If you’re receiving child support or alimony make sure you bring your divorce decree with you to prove that this is something that should be considered an asset.

Proof of Income – You’ll need a letter from your employer and/or check stubs. You’ll also need to bring 2-3 years of tax returns with you to show that you’ve been making X amount.

What Paperwork do I need for a Home Equity Loan?

You’re going to have to fill out just about the same amount of paperwork for a second mortgage as you did for your first one. This means you’re going to need some help, and when you work with us as your Toronto mortgage broker we’ll help you through the process.

How Much Will it Cost?

There is an application fee, but you’ll also have to show that you’re liquid enough for a down payment. The more money you have in a savings or checking account right now the more likely the mortgage company will approve your home equity loan.

Is the Application Refundable?

If you apply and get turned down, you usually won’t be able to get your fee refunded. This isn’t very good news to hear, but they do have to pay someone to look at your file and go over your credit report, process your paperwork, etc. You’ll want to work with one of our Canada mortgage brokers to make sure that you’re applying to a lender that’s interested in working with you, not just gobbling up application fees.

Visit our 2nd mortgage page today to learn more!