A second mortgage is an additional mortgage that is placed on a property with an existing first mortgage. Second mortgages, also called 2nd mortgages, are considered riskier than first mortgages since if the property goes into default, the first mortgage holder must be paid first. Due to the increased risk, interest rates for second mortgages are typically more than those for first mortgages.
If you own at least 20% of the equity in your home, you will be approved for a second mortgage in Ontario. A second mortgage can provide money to renovate your home or even make capital available for your business. With a second mortgage, you can make your dreams come true by using an asset you already own.
We have many private mortgage lenders across Canada who have helped our clients receive second mortgages regardless of income or credit, on the basis of equity in their property. Call us to get the lowest second mortgage interest rate.
Ontario Second Mortgage Interest Rates
Second mortgage interest rates are higher than bank interest rates. To get the lowest interest rate on a second mortgage you will need a loan to value ratio below 65% and have enough income to cover the monthly interest payments. Second mortgage rates are also influenced by the location and the type of property. Most lender prefer locations in towns and cities, rural areas and farms require a loan to value ratio below 50.0% to get a low interest second mortgage.
Ontario, located in east-central Canada is a province that borders the US and the Great lakes. Ottawa, Canada’s capital is located in Ontario and is known for the Parliament Hill’s Victorian architecture and the National gallery. Ontario is Canada’s leading manufacturing province and its largest trading partner is the American state of Michigan. Ontario is conceptually divided into two regions, Northern Ontario and Southern Ontario. The majority of the province’s population is located in the south.
Ontario Real Estate Market
Ontario has always been a hot market for real estate. According to CREA, Average Prices and sales activity reached new heights in the first half of 2016 in Ontario, mainly in the GTA. Ottawa the nation’s capital seemed to have a modest growth. It is also forecasted by CREA that sales activity should ease over the second half of the year in Ontario on a national basis.
Ontario Mortgage Brokers
A Mortgage broker in Ontario acts as a link between a second mortgage lender and a borrower. It is the job of a Mortgage broker to assess the borrower’s details to match the best mortgage product and rates associated with it. Mortgage Broker Store has the expertise and skills to grant you the best mortgage rates in the province. Call us today so we can match the best second mortgage rates for you.
Ontario Private Lenders
When banks won’t finance your second mortgage loan, a private lender may approve you even if you have a low income or bad credit. Private lenders will finance your second mortgage on the basis of the equity in your home. Our Teams are connected with private second mortgage lenders in every city in Ontario who have approved second mortgages to many of our clients within just a few weeks.
Ontario Home Appraisers
While Mortgage brokers will help you in finding the best second mortgage rates, Home appraisal professionals will help you understand the value of your property. They will give you information on the recent selling prices of other homes in your area and how you home compares with them. Most lenders will require that a licensed home appraiser look at a property before approving a mortgage.
Ontario Mortgage Refinancing
Mortgage refinancing lets you pay off your current loan by taking out a new one.
Refinancing helps you to consolidate debts into a single debt which in turn helps improve your credit rating. Refinancing also gets you a lower interest rate on your mortgage. A lower rate means lower payments. Thus you will end up paying less for your home overall.
Call our team of mortgage brokers today to find out the best options for a Second mortgage loan or if you’re looking to Refinance.