Why are 2nd mortgages becoming the norm?
So many different reasons why an individual is looking for a 2nd mortgage: job loss, debt, in arrears on accounts, property tax, challenged credit, bank refusal, or a need to renovate. Try to avoid loans with default penalties applied when you miss a payment or are late. We all think it won’t happen to us, but a clerical error can become very expensive. The interest rate on your second mortgage could increase drastically!
If your situation has changed, you wouldn’t want to pay a hefty penalty. Before you apply for a second mortgage, make sure it fits into your budget (build your budget as if you’re making the payment now). In addition to committing to a monthly payment, you may incur up-front costs to get your loan processed.
Fees involved when obtaining a second mortgage:
- Appraisal
- Lender
- Lawyer
- Broker
- Disbursements, eg. closing costs. Solicitor may do a title search for your second mortgage. Ask for a printed list of these miscellaneous fees.
We offer 2 types of private second mortgages. The loan to value and location makes a difference. In some cases, we will waive the appraisal request. We can close within 48 hours.
