What is a 2nd mortgage?
A second mortgage in Toronto, or any other city for that matter, is a way to borrow money by using the equity in your home as collateral that doesn’t require making changes to your primary mortgage. They are an entirely separate type of loan that is secured by your home equity. If you are not familiar with the term 2nd mortgage, it’s likely because they are often referred to as a home equity loan
. Generally, the big banks do not offer secondary financing. However, when they do, they are done in the form of a low interest rate home equity line of credit
. New government regulations for lines of credit make them very difficult to get and in turn, HELOCs get approved sparingly. In comparison, qualifying for second mortgages is easy. They are different than that of a first mortgage or home equity lines because they are approved almost exclusively on equity. Although they have moderately higher interest rates, the approval process is so much simpler. Generally, the more equity you have, the easier it is to get approved. It should be noted that they also come with moderately higher mortgage interest rates. In addition to high-interest debt consolidation, secondary financing can be used for a variety of things including:
- home improvements
- repairing bad credit & improving credit score
- paying property tax arrears
- discharging consumer proposals and bankruptcies early
- preventing power of sale & foreclosure
In other words, because lenders place few restrictions on equity based financing, there are almost no restrictions on what you can use your loan for.
Can I Get a Second Mortgage in Canada with Bad Credit?
Getting a 2nd mortgage with bad credit is not impossible, if you work with a mortgage broker who specializes in bad credit, the process can be surprisingly uncomplicated. Bad credit second mortgage lenders work exclusively with select mortgage brokers who cater to these types of mortgages. Turnedaway.ca, as the name implies, specializes in equity-based second mortgage lending. This means that homeowners with equity can get the best deals and the best second mortgage rates.
Can I get a 2nd mortgage in Canada if I’m not working?
Ordinarily, taking another mortgage when you’re not working may seem impractical but the truth is, this is when they are most handy. If you have been laid off, injured or lost your job a 2nd mortgage may be just the solutions you need. Second mortgage lenders put equity at the top of the list for approvals, which means you can get a second mortgage while not working. With enough equity, the right mortgage broker can even arrange an interest only loan or help you prepay your second mortgage for up to a year. In this case, you end up having very low monthly payments or none at all for up to a year. The best part is you can receive your money in a lump sum and use it at your leisure, without restrictions. By adding your payments on to the amount you borrow, you can effectively get up to one year without having to make payments. Subsequently giving you time to repair your credit, get back to work or sell your home if the situation necessitates.
Why Choose Turnedaway.ca for a 2nd Mortgage?
We help homeowners who have equity, arrange their second mortgage in Canada with the best rates and terms. The respect we have garnered allows us to get even the most complicated deal approved, giving you the flexibility you need with a low monthly payment. We have access to an endless cash flow of private lenders, Mortgage Investment Corporations to complement the banks we deal with. Our private lenders are vetted and experienced so you won’t get stuck with lenders who are not flexible. If you want the best second mortgage rates and terms, call today for a free consultation 1-855-668-3074
or apply online
and get approved today!