Much like we defined a second mortgage in a previous blog post , a third mortgage is one that comes after the first and second charge on a home.
Generally, third mortgages are rare, but they are not impossible to get. Tembo Financial provides third mortgages throughout Ontario for clients that are looking for extra money, and are not able to get it with their first and second.
The difficult part of a third mortgage is obtaining insurance on it. Insurance companies have the ability to either deny or allow the third mortgage to be in place.
When should you consider a third mortgage loan?
For some clients, having a first and second mortgage is only enough to cover their costs and needs for a certain amount of time.
Tembo Financial can give you a third mortgage if your LTV (loan to value- explained in a previous blog post found here) is low enough, or if you are planning on selling your home and are in need of money for renovations before listing for sale, or a deposit on a new purchase.
Speak with us at Tembo Financial to find out if a third mortgage is right for you.