Is a second mortgage the same as having a home equity line of credit (HELOC)? HELOC gives you freedom to use the funds when you want and pay interest only on what you use. It is also a revolving form of credit. A home Equity loan does not offer these features. What is the credit limit associated with a second mortgage? It is based on LTV and the borrower’s request and what they can afford How difficult is it to obtain approval for a second mortgage? Clients need to qualify the same as a first mortgage. Lenders look at ability to service debt, Loan to value, credit history and strength of employment What is the maximum financing period for a second mortgage? Most second mortgage lenders will offer 1 or 2 year terms. It is usually wise to have the terms mature at the same time as your first mortgage so that they can be consolidated together. Can I still apply for a second mortgage if my credit score is poor? Yes. Lender maybe an alternative or Private mortgage lender
Second Mortgage Ontario
Becoming a homeowner is a proud moment in any person’s life. But owning a home also has a number of financial benefits, including increased security and room to invest in other ventures like education, tax benefits and leverage. For example, mortgages typically increase the appreciation rate by up to five times. Moreover, mortgage payments become simpler over time. Allow our team at Northwood Mortgage Ltd. to provide the tools and support to help you make smart and informed financial decisions. At Northwood Mortgage Ltd., we pride ourselves on offering services that meet the needs of every individual and to help find a loan that will work for you. Those who are concerned about being eligible for a loan should speak with one of our mortgage agents, all of whom have a proven record of providing mortgages to people from all walks of life, including those those who are self-employed, are dealing with financial instability, are facing poor credit scores, or cannot verify their income.
Mortgage Options
Not only do we provide services that accommodate every individual and each personal situation, we offer a variety of mortgage terms based on your needs. We are committed to providing you the best options possible. For example, we offer conventional mortgages and fixed-term mortgages, which will simplify your budgeting. We offer adjustable rate mortgages, which take advantage of low interest rates and provide flexibility. We also offer prime mortgages, which also capitalize on low interest rates and lead to significant savings for our clients. High-ratio mortgages save you from spending as much upfront. Open mortgages allow you to repay at any time without any penalty, and closed mortgages offer security. We provide loans that are up to 95% loan to value for purchases under $1,000,000. We also offer an additional range of services that will enable to you to make smart, financial decisions for the future, regardless of whether or not you are taking out your first or second mortgage:
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Pre-Approved Mortgage Test
This is a free service that will allow you to see how much you can borrow based on your credit score, before you start looking for a home.
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Debt Consolidation
This will allow you to pay off your debt in a shorter period of time, improve your credit score and result in significant savings on interest, as well as less stress.
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Home Equity Loans
This will provide you with an easy source of cash to finance major expenses, including home repairs, which will allow you to earn a return on your home equity through the investments made in home improvement. Use this to also finance other major expenses, including education and special events, with lower interest rates and tax benefits.
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Bridge Financing
This will allow you to upgrade your home without having to worry about selling your current home immediately.
We have excellent relationships with some of Canada’s most reputable financial companies and are able to offer some of the best rates. Our team at Northwood Mortgage is committed to helping you invest in your future. Contact Northwood Mortgage Ltd. today for more information on how we can help you finance your future.
Owning a home is an ongoing commitment; new responsibilities and issues can arise at any time. A 2nd residential mortgage can help you to fund additional expenses and other financial needs as long as you have equity on your home.
A second mortgage is a secured loan taken against a property that already has a mortgage. If your first mortgage leaves an equity gap, then you may qualify for a 2nd residential mortgage.
There are several reasons why a homeowner may consider getting a 2nd residential mortgage, such as:
- Difficulty in getting approved for a personal loan (secure or unsecured), perhaps due to self-employment
- Higher interest on the remaining balance when renewing your mortgage, perhaps due to a lower credit rating compared to when you borrowed your first mortgage, such that the extra cost is comparable to borrowing some more
- The need for a cheaper option if breaking your mortgage midterm attracts a high penalty
A second mortgage poses a lower risk to the lender because your home acts as the collateral. A second mortgage has a higher interest rate than a first mortgage.
Comprehensive Services to Suit Your Needs
Our Northwood Mortgage Agents and Brokers can help you navigate the process and settle on the right type of second mortgage for your needs. The common options for second mortgages are:
- Home equity loan – Comes in the form of a single lump sum that you’re required to repay through fixed monthly payments for a specific period of time. A home equity loan is ideal for homeowners who know the exact amount of money they need and would prefer to receive it at once.
- Home Equity Line Of Credit (HELOC) – Gives you access to funds in a similar way to credit cards, such that you can borrow any amount you need, provided it’s within the set credit limit.
At Northwood Mortgage, we take the time to listen to your needs and look at the whole picture to approve your first mortgage. This includes situations that fall outside traditional lending categories and include:
- Self-employed
- Non-income verifiers
- Credit issues
- Financial distress situations
- New immigrants
First & Second Residential Mortgage-Things to Consider
A second mortgage depends on the value of your home’s equity, determined by subtracting your mortgage balance from the current value of the home. If your home is worth $300,000 but owes $140,000 on your mortgage, you have $160,000 in home equity.
Depending on the requirements of the lender and your credit score, you may be allowed to borrow up to 85% of your current home equity.
Most lenders have the following requirements when applying for a second residential mortgage:
- A certain minimum percentage of equity in your home
Consult your local home loan expert. After finding an option that might be suitable for your needs, consider visiting Northwood Mortgage for consultation. Our experts will answer any questions you may have and ensure that you’re making the right decision.
Why Choose Northwood Mortgage?
We recognize that each one of our clients has individual needs, and our products and services reflect this. Whether you are taking on your first or second mortgage, Northwood Mortgage offers a number of services to help you:
- Consolidate your debts to improve cash flow;
- Turn your home equity into cash when you need it most (home repairs and renovations, education financing, special events like vacations and weddings);
- Earn a return on your home equity through investments.
We aim to provide you with a high level of tangible savings. We do this by developing well-established relationships with many of Canada’s most stable and respected Financial Service companies. This gives you access to an extensive and professional range of products and services that include:
- Prime mortgages well below posted rates;
- Construction and bridge financing;
- Second and third mortgages;
- Financing, up to 95% on a purchase of under $1,000,000
To learn more about how Northwood Mortgage Ltd. can help you, contact us at info@northwoodmortgage.com or at 416-969-8130.
