Our lenders will simply confirm that you have enough equity in your home and will forgive you even if you don’t have income or good credit. Most of our second mortgages are approved on an equity basis only.
In most major cities in ON, the maximum Loan-to-Value for ON Second Mortgage financing in today’s market is 75% to 80% of the appraised property value. For example, if the home is worth $100,000 and the existing first mortgage balance is at 60% of the value ($60,000), then the maximum equity that we would be able to access would be $15,000 to $20,000 (75% to 80% of $100,000 – 60% existing mortgage balance = 15% or 20% equity or $15,000 or $20,000).
Private or Second Mortgages make sense when clients do not want to lose their preferred rates on their existing mortgages or if the prepayment penalties for the existing mortgages are too high or if the funds are only needed for a short period or to consolidate bills etc.
Is a Second Mortgage right for you? If you are thinking about getting a Second Mortgage, you will need to have the following information ready:
Once we have the above information, we can quickly determine how much equity you have in your home and how much equity you will be able to access with a Second Mortgage.
A SIDE (Based on qualifying terms)
5 Year -
Variable Rate Prime - .10% = 1.75%
Fixed High Ratio - 1.89%
Fixed Conventional - 2.09%
B SIDE (Bad credit/Low income)
1 Year or 2 Year Fixed - 2.99%
First Mortgage - 5.49%
Second Mortgage - 6.99%
Third Mortgage - 10.99%
All rates are subject to change without notice. Rates and Terms must meet qualifications for each program.