A second mortgage (2nd mortgage sometimes called “Home Equity Loan”) is simply additional mortgage charge registered in a second position (behind your first mortgage) against the title of your home in the land registry office. You maintain your present payments on your existing first mortgage and have a new second payment for the second mortgage.
Currently there are over 30 institutional mortgage lenders in Canada, but most of which do not offer second mortgages. Your CityCan Financial Toronto mortgage broker can find the second mortgage product that best suits your needs at the lowest second mortgage rates you qualify for, saving you all the legwork.
We provide second mortgages to Ontario homeowners up to 90% of your homes market value. Some of the most common uses for second mortgages are as follows:
Car, boat or motorcycle purchase
Finance a special event, such as a wedding
Money for investments
Fund a new business
Why a Second Mortgage?
The main reason you would apply for a second mortgage instead of refinancing your existing mortgage is to avoid paying the penalty to discharge your existing first mortgage, or if you are paying a low interest rate on your first mortgage that you would like to keep.
Second mortgages have closing costs, but these are not up front costs and are usually added on top of your requested loan amount and then deducted from the mortgage proceeds on closing. Second mortgages also require an appraisal of your property (cost is usually around $300).
Private second mortgage interest rates have an average range of 10% to 15%. Every situation is different. Maybe you are self-employed and don’t declare much income, or have had some past credit problems. Whatever your situation, your CityCan Financial mortgage Toronto mortgage broker is well positioned to find a second mortgage solution for you. Apply Online Now for a second mortgage, or contact your CityCan Financial Toronto mortgage broker today!