When to Take Out a Second or Third Mortgage
There are many reasons to take out a 2nd or 3rd mortgage on an existing home. And when it comes to the low mortgage rates your InTrend Mortgage agent can negotiate on your behalf, in many cases it just makes sense.
Ask us about refinancing for:
- Consolidating debts
- Renovations and home improvements
- Starting a business
- Buying investment properties
- Freeing up cash for your business
- Children’s education
- Post-divorce equity payouts
- Paying overdue taxes
- Paying off bad debt or mortgage arrears
- Bringing mortgage arrears up to date
- Halting a power of sale
Canada’s best mortgage prepayment options
Even though rates for 2nd and 3rd mortgages are generally higher than standard mortgage rates, InTrend Mortgage can help you refinance with Canada’s best prepayment options.
Understanding 2nd and 3rd mortgages
Private 2nd and 3rd mortgages are one of Canada’s most common forms of private mortgage financing. This is because they offer a low interest way to consolidate debt, borrow money, or pay off loans – while leaving a long term first mortgage in place. This is beneficial, because first mortgages usually have a lower interest rate, making a 2nd or 3rd mortgage a good source of cash flow.
Another great benefit to 2nd and 3rd mortgages is how fast they can be put in place. Often these can be approved and begin generating cash within 2 to 5 business days.
Improving cash flow
2nd and 3rd mortgages can also help homeowners free up monthly cash flow. Even if the rates are higher than posted bank rates, refinancing allows for debt consolidation with far less interest than credit cards. What’s more, interest only debt servicing may also be available, freeing up usable cash for monthly expenses.
2nd and 3rd mortgage cost
As mentioned above, interest rates for 2nd and 3rd mortgages are typically higher than those for first mortgages. This can range from 2 points above posted bank rates, to 15% and up, depending on terms. Lenders base approval on LTV (loan-to-value), your property’s location and the risk level of the loan.
Once approved, most lenders may charge anywhere from 10-15% on an 80-90% LTV 2nd mortgage.
Keep in mind too, that with a 2nd or 3rd mortgage, you may also need to pay lender fees, broker fees, legal fees and for a property appraisal.
Call us today at 905-780-8988 if you’re considering applying for a second or third mortgage.
An InTrend Mortgage
agent can help.
GET PRE-APPROVED TODAY
You deserve the lowest
possible mortgage rate.
We’re here to help with
all your mortgage needs.
Qualify For Low Mortgage Interest Rates
InTrend Mortgage agents will help you qualify for the lowest possible rate on your next mortgage.
|Mortgage Term||Mortgage Type||Interest Rate*|
Last Updated: 22-03-2023
*Rates are subject to change without notice.
Low Interest Rates are Just the Beginning
InTrend Mortgage agents understand that finding the right mortgage plan starts with finding the best mortgage loan rates possible. Your agent will creates the perfect mortgage plan by carefully considering your needs.
- Do you save more and get a lower interest rate with a fixed mortgage?
- Are you better served with a variable rate?
- How long of a term should your mortgage be, based on how long you plan to keep the home, business or investment property?
- Is your mortgage plan flexible enough to allow for lump sum payments or increases to yori monthly payment?
Your InTrend Mortgage agent could save you thousands of dollars on your next mortgage
That’s because every InTrend Mortgage agent negotiates on your behalf with multiple lenders to find you the absolute lowest mortgage loan rates possible. Free from the limitations of dealing with individual banks or lenders, your agent works tirelessly to deliver a mortgage plan that will beat all other mortgage rates, with the terms that match your needs.
Call us today at 905-415-8488 – and let an InTrend Mortgage agent show you how much money they can save you on your next mortgage.