Second Mortgage Toronto

Taking up a second mortgage has become a popular option in Toronto in the past few years.

Why?

Families often run into large, unexpected expenses that they are not prepared to pay for. Or they need a new loan for debt consolidation. Home renovation is also on the list.

For example, did you know that a second mortgage can allow you to access up to 85% of your home equity?

On this page, we’ll help you learn everything you need to know about obtaining a second mortgage in Toronto.

During our 17 years of providing mortgage solutions, we have become one of the leaders in the private lending market. At all times, we strive to give you all the knowledge you need to make the best decision about your finances.

What is a second mortgage?

Second mortgage is a loan taken out against the equity in your home. It does not replace your first mortgage – it is an additional loan which you will have to pay simultaneously.

How do second mortgages work? How much can you get?

The amount you can borrow depends on the equity you have in the home. You also don’t have to borrow the full amount available to you – you can obtain as little as a few thousand dollars or as much as hundreds of thousands.

For example:

Your home is valued at $500,000. The owing on your first mortgage is $250,000. Let’s say you can access up to 85% of your home equity. This means that you could cash out as much as $175,000 for a second mortgage.

Why would you need a second mortgage?

There are many reasons why one would need to apply for a second mortgage. It could be any one of the following scenarios:

• An unexpected expense arose, and you immediately need to access a large sum of cash.
• You have debts that you have accumulated through credit cards, credit lines, or other bills. A second mortgage can help pay for them in one go and therefore lower the monthly interest costs (as now you’re only paying one loan instead of many).
• You want to renovate your home. A second mortgage can be a great option, especially if you’re planning to sell the house soon.
• There is a business opportunity, or you want to purchase an investment property. In this scenario, be sure to check if the expected return on investment will be higher than your second mortgage’s rate – otherwise, you will suffer financial losses.

Benefits of a second mortgage

Some of the key benefits of availing a second mortgage in Toronto:

• Debt consolidation: repair, rebuild, and restore your credit. It also helps lower your monthly payment.
• Ability to secure a large amount of loan against your property
• Favourable interest rates
• Home improvement possibilities
• Meeting various financial obligations

Benefits of a second mortgage from a private lender

Unlike traditional lenders, we don’t give much focus to the credit history of our borrowers in Toronto. With a core network of our trusted mortgage lenders, we can provide a second mortgage that suits all types of property owners and buyers.

We understand that your need for a mortgage may be urgent; therefore, we always promptly react to your loan application and immediately provide you a decision on your request. That’s why 9 out 10 customers rated us ‘excellent’ in their feedback.

With Xpert Credit, Toronto’s favourite private and second mortgage lender, you’ll always get:

• Fast processing
• Quick and effective decisions
• Instant settlements

Second mortgage rates

Xpert Credit is one of Toronto’s leading private and second mortgage lenders. We have access to some of the biggest private funding providers available. Thanks to our connections and 17 years of experience, we offer some of the most accessible second mortgage rates in Toronto. We provide you with a custom solution that will best suit your needs.

Can you get a second mortgage with poor credit?

Your credit history is not the main determining factor for us. Contact us today to see if you qualify!

Second mortgage vs. home equity loan

How is a second mortgage different from a home equity loan?

• A second mortgage does not require proof of income.
• Your credit score can be much lower.
• A bankruptcy or proposal can be considered.
• A second mortgage must be repaid or renewed after term. It is not a rolling credit.
• With a second mortgage loan, you receive the entire funds at once.

As you can see, a second mortgage has more flexible lending terms and conditions to suit every financial situation.

How to get started

We hope that this information was helpful to you. Xpert Credit is here to guide you on the best financial solution for your family.

If you’re ready to apply, contact us through the form below to help you – let’s save you time and money on your private second mortgage in Toronto!