10 TIPS for Second Mortgage Borrowers

Are you an Ontario resident, between 25-75, regularly employed or self-employed, owning a property or two, and perhaps carrying a bit more debt than you’d like? Is your credit score less than perfect due to collections, late payments, or have you even faced bankruptcy or a consumer proposal?

Are you standing at a significant crossroad in your life, like a marriage, divorce, or separation, requiring some extra financial assistance?

If you nodded affirmatively to any of these, this blog post is written expressly for you.

We understand how the weight of financial burdens can make life seem daunting. The mounting debts, high-interest loans, the need for cash injections for personal emergencies or business expansion – we empathize with these struggles. Life can be unpredictable, and sometimes all we need is a fresh start, a second chance.

Your existing assets, especially your home, are more valuable than you think. You don’t have to feel trapped in financial stress. We provide you with empowering mortgage solutions to transform your financial challenges into opportunities.

Introducing our Second Mortgage service.

This financial tool is a potent way of leveraging the equity in your property to free up cash for various purposes.

 Here are our top 10 tips for second mortgage borrowers, which can help you navigate this process confidently and strategically. 

1. Get a Professional Appraisal: It’s essential to know your property’s current market value before applying for a second mortgage. We have lenders who cover the cost of appraisal and legal fees, making this process effortless for you. Do not use guess-work. Every lender has their own approved appraisers they work with.
2. Understand Your Equity: Equity is the value of your home minus what you still owe on your first mortgage. The more equity you have, the more you can borrow.
3. Assess Your Credit Score: Believe it or not your credit score affects the terms and interest rates on your second mortgage. However, our lenders work with people who have bankruptcy or consumer proposal in their credit history, so don’t let your credit score discourage you.
4. Know Your Debt-to-Income Ratio: Generally speaking lenders use this ratio to assess your ability to make monthly payments. But don’t worry, we also offer solutions with or without regular monthly payments to suit your unique needs
5. Research Rates and Fees: Not all second mortgages come with the same rates and fees. Our extensive network of lenders, including MIC, REIT, and private lenders, offers a diverse range of competitive rates and solutions. It all get down to the perceived risk of losing money by the lender. That’s why we have a holistic approach to second mortgages where you and the lender both are at ease and work out a solution that works for both.
6. Budget for Additional Costs: While some of our lenders can cover appraisal and legal fees, always budget for potential additional costs like closing costs and any additional lender fees.
7. Be Clear About the Purpose: Be transparent and specific about why you need a second mortgage. Whether it’s for debt consolidation, home improvement, or investment in a new property, being clear about your goal will help us tailor the perfect solution.
8. Diversify Your Lending Sources: Our lenders think outside the box and are willing to work with unique situations like yours. We extend our expertise to ancillary strategies like rent-to-own, joint ventures, and even lending on present value for pre-construction properties.
9. Don’t Rush: We ensure a swift processing time of just 48-72 hours. But remember, never rush your decision. We are here to help you explore all your options patiently. Plan ahead and do not wait till the last minute.
10. Seek Expert Guidance: Our diverse, multi-lingual team of mortgage brokers and agents is always ready to assist you. Leverage our years of experience and comprehensive knowledge to make informed, strategic decisions.