A second mortgage is just like a regular first mortgage on your property, however it is in second position. That means, that after you pay out your first mortgage, the second mortgage gets paid out afterwards.
This makes second mortgages a higher risk for lenders. That is because if you were to default on your mortgage, the loan in first position would be paid off first, leaving the remainder for the second. The second mortgage takes a chance at not being paid in full if anything goes wrong with the mortgage.
Second mortgages can be done through a private lender, that will go to a high loan to value ratio. This gives you the opportunity to take out more equity from your home.
Second mortgages are fairly easy to get on your home, and insurance companies are able to provide you with what you need to secure a second mortgage loan.
When should you consider a second mortgage loan?
If you are finding your self needing more from your mortgage, consider applying for a second mortgage. The second mortgage with a private lender is able to be more flexible, and free up some of the equity in your home.
If you are anywhere in Ontario, including: North York, Vaughn, Barrie, Mississauga, Brampton, Cambridge and more, give us a call today to see how you could be approved for a second mortgage in Ontario!