Our Muskoka mortgage brokers have a wealth of experience in this region. They are constantly reviewing properties and arranging mortgages for clients. When looking for financing, rates are not the only thing you want to look at. When you talk to a mortgage broker in Muskoka, they can give you all the information you need to make the right choice.
First mortgages – most people require a first mortgage when they purchase a home. Muskoka mortgage brokers have many different lenders who will compete for your loan business. The rate of interest that a borrower will pay is always lower when lenders compete. In most cases a borrower will only ask their local bank what the rate is and pay that interest rate. Mortgage brokers in Muskoka will get you the lowest rate possible for a first mortgage.
Second mortgage – most large Canadian banks do not deal in second mortgages due to the higher loan to value ratios(LTV). Mortgage brokers in Muskoka have access to private lenders that specifically deal in second mortgages. Private lenders usually do not exceed a loan to value ratio of 90%. The interest rate for a second mortgage will be higher than a first mortgage due to the higher level of risk. The clients credit score in combination with the LTV will determine the interest rate that you will pay for a second mortgage.
Debt consolidation loan – most people have some form of credit card debt and many people do not pay off the monthly balance. The annual rate of interest for many unpaid card balances is around 29%. If you only have a small outstanding balance the 29% interest will not add up to a significant amount of money. The problem really occurs when you owe a large amount such as $50,000.00, the annual interest alone on the balance would be$14,500.00. Muskoka mortgage brokers can arrange a debt consolidation loan that is secured as a second mortgage and would have a much lower rate of interest of around 15%; which could save you about $7,250.00 in interest charges every year.