The second mortgages that we provide are loans that are made against the equity in your property. Second mortgages can be used for consolidating debt, business investments, and college/university education for your kids or other unexpected costs.
Whitby Second Mortgages
In Canada, a mortgage is a claim against a property, and that property is used as collateral for the loan. Technically speaking, a mortgage is a document that you give to your mortgage lender in order to gather funding. The traditional method of purchasing a house is to borrow money from a bank as a way to finance the home purchase. The individual borrowing the money makes a promise to pay the lender back the money in small amounts over a predetermined time period.
A property can have many mortgages, but more than three is extremely rare. The mortgages are numbered in the chronological order in which they were placed on the property. Therefore the first registered amount is the first mortgage and the second registered amount is the second mortgage. If the property owner is unable to pay the agree upon payments, then the mortgages fall into default.
If a property owner is unable to pay the mortgage fees, the lender has the ability to take ownership of the property to recoup their investment. The number of each mortgage determines the order in which the mortgages are to be paid out. This means, that a first mortgage would be paid out first, then the second mortgage would be paid out. Since each additional mortgage increases the risk, the interest rate also increase.
Second Mortgage Appraisal
Lenders require an appraisal for most second mortgages. The appraisal is done by an independent appraisal company, the mortgage is based on the appraised value of the house.
Our professionals have decades of experience with second mortgages. If you need a second or third mortgage please don’t hesitate to contact our team of professionals. We will walk you through the process and help you find the solution that is in your best interest.