If 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!