A second mortgage is a loan against a property that already has a mortgage on it. Just like a mortgage or loan, you are expected to repay the second mortgage with interest. If you do not make the required payments, the lender can sell your home to get their money back.
With COVID-19 causing a second lockdown across Ontario, borrowers are wondering how they can stop power of sale on their home if they cannot to keep up with the required payments. While this is a challenging predicament to be in, there are ways to stop a power of sale.
A second mortgage is an additional mortgage you get on a property that already has a mortgage. A second mortgage can look like a regular mortgage where you borrow all the funds at once. It can also come in the form of a home equity line of credit (HELOC) where you borrow funds as you need each month up to an amount approved by your lender.
In 2020 alone, The Canadian Bankers Association reported 0.25 percent of mortgages were in arrears across Canada. The financial crisis of 2008 led to a decrease in interest rates, causing a surge in home purchases. Now, just 12 years later, homeowners are suffering yet another economic crisis, paired with a pandemic that has forced many Canadians into financial flux.
A reverse mortgage is a loan based on the value of your home. With a reverse mortgage, you are not selling your home to the lender. You still hold the deed to your house and you get to live in your home.
Debt consolidation is a great way to pay your various debts through one payment plan with one lender. The total amount you owe has not changed, but most debt consolidation loans have lower interest rates than many other types of loans. The savings from paying a lower interest rate could be significant.
In March of this year, many Canadians took advantage of an option called mortgage deferral. When your mortgage is deferred, your principal payments are postponed thus lowering your monthly expenses to cover interest charges only.
Refinancing a mortgage is a good alternative to other borrowing options such as lines of credit and other loans. You can refinance your mortgage as many times as you need. With that said, the lender you want to use may only allow a certain number of refinances or a specific credit score minimum to proceed. Talk to different lenders and see what their requirements are to get mortgage refinancing.
One thing that we pride ourselves on at Mortgage Broker Store is our ability to deal with difficult power of sale and foreclosure situations. Since we are generally well known for this expertise, we get a lot of calls related to legal issues with mortgages. This specialization gives us a general idea into the state of mortgages in Ontario. We’ve looked through our website statistics and the number of inquiries we’ve gotten and have come to some general conclusions.
Mortgage Broker Store Inc has been a “private mortgage first” lender for over 13 years, and we’ve learned many lessons along the way. When we started, the website was built on the now-defunct “RV Site Builder,” and now we run on the world-class WordPress platform with help from industry professionals to enhance the look and feel for the website.