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The Covid-19 pandemic has left many homeowners with questions regarding their mortgage arrangements. Homeowners may have concerns resulting from increased difficulty making monthly mortgage payments while trying to also pay all associated housing costs and any other ongoing monthly debt payments.
Another option open to homeowners with significant equity built in their homes is a Home Equity Line of Credit (HELOC). This second mortgage option acts like a revolving line of credit enabling funds to be available as the balance is paid off, a homeowner only needs to pay the monthly interest on the line of credit.
Regardless of the type of mortgage financing that works best for your immediate financial needs, you can properly prepare for your meeting with a mortgage broker by being aware of what your broker should be addressing.
Throughout Ontario, private lenders are well-established and experienced in negotiating private secured second (and sometimes third) mortgage options for existing homeowners with poor credit or high household debt ratios.
Just as in all second mortgage loan options, all lenders will be assessing the degree of equity in a homeowner's property. To calculate home renovation loans a lender will also ask to see a current appraisal to determine the current value of the property.
Of all the criteria that Ontario lenders assess, credit remains top of the list when it comes to approving refinancing options utilizing your home equity.
It can not be stressed enough that you need to bring a recent appraisal of your property to any meeting with a lender. All Ontario-based lenders including the big banks, trust companies/credit unions, and any private lending option will be assessing this appraisal very carefully.
When contemplating a second mortgage on your property there is reason to be optimistic. There are many advantages to exploring the option of accessing existing equity in your home for various short-term financial goals.
What exactly is a bridge loan? Simply put, bridge loans represent short-term loans (usually 3 to 12 month terms) in which a homeowner borrows against the existing equity in their home or property.
What if your credit is damaged? Owning a home does allow those who may have poor credit or reduced income to take out second mortgages for a number of financial objectives. Reasons to take a second mortgage can include the need to pay off existing debts, pay for any much-needed renovations, pay off legal fees or arrears if in mortgage default, and other pressing financial reasons.
