Frequently Asked Questions (FAQ)

Here is a common list of questions we have compiled to allow you to better understand some specialized terms that you may be unfamiliar with regarding mortgages. The questions include information about second mortgages, private lending, and home equity loans, among other things.

Can I Stop a Foreclosure

If you are facing a possible foreclosure in Canada, you should try to understand the legal process. You should also consult with a lawyer and a mortgage broker as soon as possible. You must act as quickly as possible to prevent and stop a foreclosure.

A foreclosure is a legal remedy used by a lender to try to recoup its financial investment in a property. A foreclosure means that the lender is taking ownership of your property. The lender will assume all debts, liabilities, and any equity in the house. If your property has a large amount of equity, you should take immediate action to try to stop the foreclosure. Learn more

How to Get a Mortgage with Bad Credit?

Applying for and qualifying for a mortgage can be a lengthy and complicated process, but if you have bad credit, you may find yourself getting turned away by banks before you have a chance to prove yourself financially.

Bad credit can be a hurdle in the process of getting a mortgage and purchasing a home, but it doesn’t have to be the end of the story. Read on to find out how to get a mortgage with bad credit in Canada. Learn how to get a mortgage with bad credit.

What is a Home Equity Loan?

The idea of a home equity loan seems fairly self-explanatory — it’s any loan that’s secured against the value of your property. At first glance, this might sound a lot like a mortgage; however, they’re not always the same thing. But what’s the difference between a home equity loan and a mortgage?

For starters, a mortgage is used to finance the purchase of a property. A home equity loan, on the other hand, can be used for just about anything, depending on the terms and the loan amount. Learn more about home equity loans. 

What is a Second Mortgage?

A second mortgage is a loan that is secured by a property that already has a first mortgage on it.

The home or property may have multiple mortgages secured against it. The mortgage lenders must be paid off in the same order in which the mortgages were placed on the property. When a property is sold, a first mortgage must be paid in full before the second-mortgage lender can receive payment. Learn more about second mortgages.

What is Private Lending?

Private borrowers are individuals or companies that make money by investing in real estate. These lenders are unregulated and do not face the same government restrictions that impact banks, credit unions, and trust companies. Private lenders in Ontario can lend money as a mortgage secured against a piece of real estate. Learn more about private lending.

What is a Reverse Mortgage?

A reverse mortgage is a special type of mortgage available only to homeowners aged 55 or older. This type of mortgage will provide the borrower with an initial lump sum, followed by additional monthly payments throughout the life of the mortgage. The only officially government-endorsed providers of this mortgage type are HomeEquity Bank and Equitable Bank.

What is Power of Sale?

A power of sale effectively allows the lender to sell the property if the borrower defaults on the mortgage. The most common reason for default is the failure to make mortgage payments, but other reasons include failure to pay property taxes and failure to insure the property.

The ability to process a power of sale is part of the Ontario Mortgages Act and is the most common solution for mortgage lenders looking to recoup their investment. Learn more