Mortgage brokers in Sudbury can help you choose the right mortgage for your needs. They can explain the difference between a first and second mortgage or fixed and variable interest rates.
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 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. By using a mortgage broker in Sudbury 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%, but some private lenders do go up to 90%.
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 Sudbury 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. Most renovations add more value to the property than the cost of the mortgage. Mortgage brokers Sudbury have many private lenders who provide loans for this situation.
Bad Credit – for clients that have a bad credit rating we can suggest methods to improve your credit rating. When you improve your bad credit score refinancing your present mortgage becomes much easier. You will also save money since most lender will now offer lower interest rates.
Sudbury 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. Talk to a broker so they can help you decide which lender is best for you and your home loan.
Call mortgage brokers in Sudbury today to find out if you qualify for a first or second mortgage. You will know within a matter of minutes when you can get the money you need.
Follow this link for the City of Sudbury.