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SECOND MORTGAGE

WHAT IS A SECOND MORTGAGE?
A second mortgage (2nd mortgage sometimes called "Home Equity Loan") is simply additional mortgage charge registered in a second position (behind your first mortgage) against the title of your home in the land registry office. You maintain your present payments on your existing first mortgage and have a new second payment for the second mortgage.

Currently there are over 40 institutional mortgage lenders in Canada, but most of which do not offer second mortgages. Your Noble Choice Mortgages broker can find the second mortgage product that best suits your needs at the lowest second mortgage rate you qualify for, saving you all the legwork.

We provide second mortgages to Ontario homeowners up to 95% of your homes market value. Some of the most common uses for second mortgages are as follows:

  • Debt consolidation
  • Car, boat or motorcycle purchase
  • College tuition
  • Home renovations
  • Finance a special event, such as a wedding
  • Money for investments
  • Fund a new business

  • WHY A SECOND MORTGAGE?
    The main reason you would apply for a second mortgage instead of refinancing your existing mortgage is to avoid paying the penalty to discharge your existing first mortgage, or if you are paying a low interest rate on your first mortgage that you would like to keep.

    Second mortgages have closing costs, but these are not up front costs and are usually added on top of your requested loan amount and then deducted from the mortgage proceeds on closing. Second mortgages also require an appraisal of your property (cost is usually around $250), but if you can qualify for CMHC Insurance - YOU GET A FREE APPRAISAL!

    The second mortgage interest typically starts at bank posted rate +1% if you can qualify for CMHC (Canada Mortgage and Housing Corporation) second mortgage insurance. If you don't qualify under CMHC guidelines, then private mortgage funds will be required. Private second mortgage interest rates have an average range of 10% to 15%. Every situation is different. Maybe you are self-employed and don't declare much income, or have had some past credit problems. Whatever your situation, Noble Choice Mortgages broker is well positioned to find a second mortgage solution for you. Apply Online or contact our Noble Choice Mortgages broker today at 416 261 4736.

    WHAT IS CMHC MORTGAGE INSURANCE?
    CMHC insurance, (Canadian Mortgage and Housing Corporation)is required by most institutional lenders in Canada for home purchases with a down payment of less than 20% . In the case of second mortgages, it allows the homeowner to obtain a second mortgage up to 95% of the homes value. This is referred to as 'mortgage default insurance' and it virtually eliminates the risk the lender would take on by funding mortgages so close to the homes property value. CMHC mortgage default insurance is what makes home ownership a reality for most Canadians as it eliminates the need for the traditional 20% down payment and allows them to purchase with as little as 5% down.

    Apply Online or contact our Noble Choice Mortgages broker today at 416 261 4736.


      

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