Mortgage brokers in Stratford can help you choose to right mortgage for your needs. They will explain the difference between first and second mortgages along with the various terms that are contained in each mortgage.
Common types of mortgages:
First Mortgage – first mortgages are the most common financial requirement for most clients. A first mortgage usually has a loan to value ratio below 80%. To get the lowest interest rate on a first mortgage you will need a good credit score, a stable income with a Notice of Assessment from Revenue Canada and a loan to value ratio below 80%. Most first mortgages come with no fees or additional costs to our clients. As a person needing a mortgage you have nothing to lose by using mortgage brokers in Stratford, but you could save a great deal of money and time.
Second mortgages – there are many good reasons for getting a second mortgage including home renovations and debt consolidation. A second mortgage is usually based on the loan to equity value on your property, most second mortgages do not exceed 85%.
Debt consolidation – this can be one of the best uses of a second mortgage. Many credit card companies charge an annual interest rate of 29% on any unpaid balances. This means that many people can not afford to pay the interest let alone the principal. A second mortgage will have a lower rate of interest because a second mortgage is less risky than unsecured personal credit debt. In most cases the minimum amount for this type of loan is $20,000.00. Amounts less than this are not justified due to fees associated with processing the loan, ask mortgage brokers Stratford to see if you qualify
Renovation loans – many people want to renovate their property and increase the value of their property. A renovation loan can be based on the estimated value of your property once the renovation is completed and most renovations add more value to the property than the cost of the mortgage. Mortgage brokers Stratford have many private lenders who provide loans for this situation.
Stratford mortgage brokers can give you professional advice and help you avoid any problems regarding your mortgage. Some lenders have penalties when paying off your home loan faster or charge you fees if you want to switch to another lender. It’s good to talk to a broker, they can help you decide which lender is best for you and your home loan.
Call mortgage brokers Stratford, Ontario today to find out if you qualify for a mortgage. You will know within a matter of minutes when you can get the money you need.