In this blog post, we’re going to go over some of the recurring questions we get from folks who are interested in looking at the benefits and opportunities of a Tembo private second mortgage.
1. What do I need to be approved?
The approval process is extremely quick! Often providing commitment documents within 48 hours of application. Every second mortgage request is different and therefore the documents we require depend on each situation. Usually, we’re looking for the details of your house title, any liabilities you currently have (what’s your outstanding mortgage balance) and ID verification. In some cases we don’t even require a credit check or income verification*. There’s no “pre-approval” process at Tembo. The time you take to finish a pre-approval form for a major bank online is the time we can get you fully approved through an appointment with us.
2. How long until the cash is in my account?
We can get your funds to you in as little as 48 hours from application to funding*. We’ve had clients apply early in the day, their documents were approved that same morning, they provided signed documents early in the afternoon, and we deposit money into their accounts by lunchtime the following day. Speed and a simple approvals process are two great assets to a private second mortgage with Tembo.
3. Is a private second mortgage flexible?
We’ve had clients who needed funds quickly to secure a deposit for a condo. They didn’t want to draw on their savings and using their lines of credit wasn’t an option so they needed some added flexibility – they called Tembo. We’ve had clients who were moving to cottage country and wanted a new pickup truck or a boat and didn’t want to draw on their TFSAs to do so. We’ve had successful realtors who wanted to facilitate the purchase of several properties to flip over a longer period of months. The list of unique cases and needs goes on and on, but through them all, clients have appreciated the flexibility of our services and support. We are very solution oriented and creative in our process.
4. Can I use a private second mortgage to renovate my property?
Yes. Many clients will access a second mortgage to redo a kitchen, finish up a basement, or complete some landscaping. Anyone who has participated in the property market or bought a home knows that every house has some reno needs. With many property valuations declining due to higher interest rates, a renovation can help bridge the gap between where you want to sell and where the market has taken your home value. This is also a great tool to use just before listing your property. A reno loan can transform a home into a rental property, which could make it very valuable to an investor. Renovation options are endless, and a creative, well-planned reno can massively increase home value.
5. How can a private second mortgage benefit me financially?
If you have 1 or 2 credit cards, a line of credit, student loans, car loans, and some other debt products (like the vast majority of Canadians), you know that these tools can make life comfortable but come with interest costs. Those costs are climbing due to higher rates (and will continue to do so). Projections show that the Bank of Canada could raise rates to 4.25% by April of 2023. Using a private second mortgage with Tembo can help shave off hundreds if not thousands of dollars in interest payments by giving you the option of paying off all your debt products. Instead of making 4 or 5 payments, you’d make one. This could be a big boost to your credit score also. Giving you lower long term debt costs and more debt options over time.
*Subject to qualification