In the past you may have taken out a second mortgage to pay off your debt or make a large purchase, in doing so it’s likely your monthly payments have doubled, or you are paying interest only on that second mortgage. Now you want to decrease the amount you pay each month or you could just be looking for better terms, and to accomplish that you need to consolidate your mortgages.
You bought your dream home a few years back now, but circumstances have changed and you are considering selling your home in the middle of your mortgage term, but you’re concerned you are going to have to break your mortgage and pay a hefty penalty. Don’t fret, you may be able to port or transfer your mortgage. (more…)
In Ontario, a second mortgage on a property title will appear as a separate charge on that property but does not change the first mortgage. Since there is higher risk to the lender, taking a second mortgage typically has a higher rate of interest.
A second mortgage can allow homeowners to use the equity that they have in their home. If your first mortgage has high pre-payment charges, or a low rate, a second mortgage can be a better option than a refinance. This option may also be best for those who are self-employed, have bad credit, or for those in need of fast cash.
What are the Benefits of a 2nd Mortgage?
We used to have two primary mortgage categories, “High Ratio” or “Conventional” mortgages, but now we have insured, insurable and un-insurable. What do these terms mean?
Insured; a mortgage transaction in which the insurance premium is/has been paid by the client. (Generally, 19.99% equity or less to apply towards a mortgage, amortization of 25yrs or less, mortgage under $1Million, qualify at Bank of Canada(BoC) benchmark rate). (more…)
The following is a list of items you want to avoid doing when you are starting the process of applying for a mortgage.
1. Don’t apply for any new credit; Applying for credit will lower your credit score. You will lose a few points off of your rate and will also potentially change your borrowing ratios.
Being self-employed or a business owner means that you have a different set of guidelines for obtaining mortgage funds. Due to write-offs a lot of us show less income on our final government documents then we actually made; this can make your mortgage application and approval more complicated. (more…)