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Getting a 2nd Mortgage in Ontario

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?

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Insured vs. Insurable vs. Un-Insurable.. What does it all Mean?

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…)

Mortgage Renewal

Renewing your mortgage should be easy, right? Absolutely, but there are factors to consider before signing on the dotted line.

Most people tend to just sign back the mortgage offer given to them by their existing mortgage lender, however, that may not be the best offer available to you.  In fact, a study done by the Bank of Canada indicates that those borrowers who switched lenders at renewal, typically saved more money than those who remained loyal to their existing lender. (more…)