Oshawa mortgage brokers can help you get a first, second or third mortgage for your property. Our goal is to provide you with a low interest rate mortgage. You can choose between fixed or variable rates of interest. We can also provide mortgages for people with bad credit, cottage property and commercial loans. We have specially trained brokers who handle home equity refinance, debt consolidation loans and self employed loans.
First mortgages – most people need a first mortgage when they purchase a home or property. Mortgage brokers Oshawa have access to many different lenders across the country who will compete for your loan business. The rate of interest that a borrower will pay is always lower when lenders compete. In most cases a borrower will only ask their local bank what the rate is and pay that interest rate.
Second mortgages (2nd mortgages) – most large Canadian banks do not deal in second mortgages due to the higher loan to value ratios(LTV). We have access to private lenders that specifically deal in second mortgages. Private lenders usually do not exceed a loan to value ratio of 90%. The interest rate for a second mortgage will be higher than a first mortgage due to the higher level of risk. The clients credit score in combination with the LTV will determine the interest rate that you will pay for a second mortgage.
Second mortgage interest rates are primarily based on how much equity is in your home. A low level of mortgage debt means that that you have a low loan to value ratio and can qualify for a lower interest rate second mortgage. Factors such as enough income to service the debt and a high credit score will also help to reduce the interest rate.
Debt consolidation loan – most people have some form of credit card debt and many people do not pay off the monthly balance. The annual rate of interest for most unpaid card balances is around 29% and if you only have a small outstanding balance the 29% interest will not add up to a significant amount of money. The problem really occurs when you owe a large amount such as $50,000.00, the annual interest alone on the balance would be$14,500.00. We can arrange a debt consolidation loan that is secured as a second mortgage and would have a much lower rate of interest of around 15%; which could save you about $7,250.00 in interest charges every year.
In most cases an appraisal is required for a second mortgage. The appraisal will give the present market value of the property and the second mortgage will be based on the appraisal. Homeowners can increase the appraised value of the house by cleaning, making minor repair and painting.
Many of our clients have bad credit or poor credit scores. Our private lenders do look at your credit reports to see if the clients credit score can be improved. Second mortgages are usually based on the equity in your home, not your income or credit rating.
Oshawa has a very diverse mix of housing ranging from small older homes to brand new estate style homes.Highway 401 divides the upper and low half of Oshawa. The lower half which ends at Lake Ontario has a combination of detached, semi-detached and townhouses. Park Road gives the residents direct access to Lake Ontario with beautiful views from the hill over looking the lake. Many people that work at the GM plant on Stevenson Road live in this quite area. Stevenson Road, Simcoe Street, Ritson Road and Harmony Road all connect to the 401 and provides access to all parts of the city.
In the north end between Rossland Road and Taunton Road there are mostly new homes built within the last 25 years. Oshawa also has Five Points Mall and the University of Ontario Institute of Technology. The Oshawa Airport provides easy access for people with small aircraft.
Please call if you have any further questions regarding a second mortgage.