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:

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!

What’s the Difference between a Second Mortgage and a HELOC?

second mortgageIf you’ve heard of home equity lines of credit, home equity loans and second mortgage, things can get confusing. Part of our role as Canada mortgage brokers is to help you figure out which is right for you. Here we’re going to explain what each does, how they work and how to make sure which option is the best for your needs. Before we get started, you’ll need to know how much equity you have available, you’ll find this on your monthly statement; subtract how much you owe from the last appraised value of your home, and you have your equity!

What is Equity?

Every monthly payment you make to the lender, you get back a little equity. It’s important to always pay more than the minimum payment to make sure that you’re getting back as much equity as possible. Once you pay off your first mortgage (and any other mortgages you may have taken out), you’ll have 100% equity! You’ll want to save up the equity in your home for a rainy day.

What is a Second Mortgage?

A second mortgage, also known as a home equity loan, is another mortgage you take out on your home based off the equity you have. So if you have a home worth $500,000 that you’ve paid off in full, you can borrow up to 80%, or $400,000 of. With a second mortgage you’ll be able to get a big lump sum to pay off your debts or to remodel your home, but it’s important to invest your money wisely. Renovations like bathrooms and kitchens pay off, so do decks, but flooring usually doesn’t pay much (but if your home is a carpeted mess it can certainly help sell it!).

What is a Home Equity Line of Credit?

HELOCs, or home equity lines of credit, are more like a credit card based on the equity of your home. Instead of having to worry about how good or bad your personal credit is, you’ll be able to borrow against your real equity that you have in your home. This can be both good and bad, because you can take a little here, a little there, over a period of time. many people open one as a sort of rainy day fund, and you’ll want to talk to one of our Toronto mortgage brokers before you do this.

Which One is Right for You?

Figuring out which one is the right one for you is never easy, but picking up the phone and giving us a call is! We’ll help you explore all of your options, understand how equity, credit and history play a roll in getting the mortgage that’s right for you. If you want a home equity loan or a second mortgage, we can help! We’ll help you find the lender that will give you the best deal – equity is hard fought, so you’ll want to make sure whoever gets their hands on it is going to give you a great deal.

Visit our 2nd mortage page to learn more!

Take Advantage of Low Interest Rates with a Canadian Second Mortgage

second mortgageGetting a second mortgage is easier than ever, but do you need one? Here we’re going to discuss the kinds of second mortgages that are available, the benefits, how you can get one and if they’re the right choice for you. A second mortgage will give you the money you need to pay off bills or send your kids to college. Whatever you need the money for you’ll be able to get it if you play your cards right. Let’s talk Canadian second mortgages!

What Is a Second Mortgage?

A second mortgage is just like your first mortgage, but you’ll have a different kind of payment situation for these kinds of loans. You may not have to pay it back for a few years, or you could have up to 25 years to start paying it back. It all depends on how much and from whom you get your second mortgage. Before you settle on any lender, you’ll want to talk with one of our Toronto mortgage brokers (or a broker in your area) to see if this is the right financing option for you.

Is a Mortgage Broker the Right Option for You?

A Toronto mortgage broker like us can help you get a second mortgage that fits with your finances and your needs; there’s literally no situation where we couldn’t help you do that. We have the relationships with the local lenders and we can also go outside of Toronto to help you find the right financing. Instead of worrying that just one lender may or may not give you the mortgage you need to refinance your home, you’ll be able to pick from a spectrum of different lenders who are willing to give you a fair and equitable deal.

We won’t just stop at how much you’re getting either. We’ll also talk to different lenders and see who will give you the best interest rate down to the percentage point. We’ll find the one who will give you the best terms possible. When working with a Toronto mortgage broker it’s important to make sure that they’re experienced and working in your best interests. We’ll do that! We have the experience to get you the best second mortgage regardless of your credit situation.

Is a Second Mortgage Right for You?

If you want to free up some of the equity that you have in your home, a second mortgage needs to seriously be considered! They can give you the money you need to pay off big purchases, big debts and everything else that you need money for. You’ll want to be careful with it, invest your second mortgage wisely. No matter what anyone says you could be gambling with your future if you go about it the wrong way. If you want a great second mortgage, make sure you speak with one of our Toronto mortgage brokers. You can get a great loan, let us help you learn how!

you talk to a mortgage broker. When you know what your options are you’ll be able to make an informed decision.


What Makes a Home Equity Loan Different from a Second Mortgage?

While the idea behind the two is the same, there are some differences between the two that you need to understand. First a second mortgage is generally based on your credit score, while a home equity loan is based on the equity of your home. If you fail to pay back a second mortgage you will suffer damage to your credit, but you may be able to avoid foreclosure. Depending on how a home equity loan is structured you may lose your house if you fail to repay. While a home equity loan sounds severe with the right lender you’ll be able to get the money you need and repayment terms you can live with.

How does a Home Equity Loan Work?

Home equity loans use the equity in your home as collateral for the loan. Your credit can be less than perfect and you can still get a decent interest rate, unlike a conventional second mortgage. Equity is the true value of your home. If you have a home worth $500,000, you have a mortgage that is $100,000 your equity would be $400,000. You can borrow up to 70% of your equity (so you can maintain a controlling interest in your home) for a variety of purposes.

What Can Home Equity Loans be Used For?

You can use them for virtually anything you like, but spending the money wisely is the most important part of getting a loan. Many people will reinvest the money right back into their home so they can bring up the value (and the equity!) of the house. Others will spend it on retirement and enjoy their golden years, while others will send their children or themselves to university to get a better job. The good thing about a home equity loan is you only have to pay interest on the money you borrow; you don’t have to borrow the entire available amount and you can even use it to repair your credit.

Be Careful About Home Equity Loans

When getting a home equity loan you need to be careful. You’ll want to go to a mortgage broker to find a good rate and see different competing offers from various lenders. When you choose us as your mortgage broker we’ll be able to find you an exact match for your needs for your home equity loan; walking you through the paperwork and the terms of the loan you’ll go into things eyes wide open and will be able to avoid sticker shock before you get to the negotiating table.

Home equity loans aren’t right for everyone. If you’re not sure what option is right for you, we can help you evaluate your finances; you may qualify for a second mortgage or private loan (bad credit isn’t always bad credit!). Many factors like credit, how much equity you have available and if you’ve borrowed against your home in the recent past will affect how much you can get for your home equity loan.

Contact us today and see what we can do for you.

Is a Second Mortgage Right for You?

Sometimes you need to refinance your first loan, sometimes you need to get a second mortgage. It can be hard to tell when which is right for you, and that’s when you need a Toronto mortgage broker to help you out. You can find mortgage brokers all across Canada who can help you with your options. Here we’re going to talk about the benefits of a second mortgage and how you can get the one that’s right for you. A second mortgage is just like your first mortgage, and the process is very similar!

What is a Second Mortgage?

Second mortgages are just like your first mortgage; you’ll be taking out another mortgage on top of your existing one and you’ll have it deferred usually for a set amount of time. You’ll wind up paying a little more in interest on your second mortgage, no matter how good or bad your credit is.

What Are the Benefits of a Second Mortgage?

Understanding the benefits of a second mortgage is all about understanding what you need before you start shopping for one. Do you just need a short term loan that you can pay off quickly? You may want to sign up for an adjustable rate mortgage so you don’t end up stuck in a long contract with the lender. Do you want to repair your home and pay off bills? You may want a fixed rate mortgage. Fixed rate mortgages allow people to borrow and pay back over a longer period of time, instead of trying to pay it all off in a two year period.

How do You Get a Second Mortgage?

Getting a second mortgage can be as easy as going into a bank. But if you want to get the best mortgage you’re going to want to consider getting a mortgage broker. Just like an insurance broker, a Toronto mortgage broker will help you compare rates from different lenders and see which one is the best match for you. Not all lenders are created equal, and depending on your own unique situation you may get better results doing things differently. Some people with poor credit get mortgages with private mortgage lenders while people with good credit may want to go the bank route. Either way, you want to make sure you’re getting the best rate on your next mortgage.

Interest Counts

When you sign on for a second mortgage you could be stuck with that interest rate for 30 years. While interest rates now are fantastic (5%), depending on how your mortgage application is filled out you may have to pay much more. With a mortgage broker you’ll be able to get the financing you need without having to haggle with the banks. Instead of dreading one lender rejecting you and dashing all your hopes and dreams, you’ll be able to work with a myriad of lenders who want your business. When lenders compete you come out on top!

Visit our second mortgage page today, to learn more about how we can help you: