Second Mortgage Loans Canada provides you Information you should know before applying for a 2nd Mortgage.

Mortgage Broker Jeff DiLorenzo - The Mortgage Group Canada Inc.

Do you need to do some home renovations or buy a second home? Do you need some fast cash for personal reasons? A second mortgage or home loan is a great way to free up some of your equity that is built up in your home. This is a great way to transfer some of your equity into other areas of your life and can sometimes be less costly than refinancing your 1st mortgage.

How can I qualify for a second mortgage or home equity loan In Vancouver BC? 

To qualify, you must own Real Estate in or around Vancouver British Columbia or Western Canada and have a sufficient equity in your home. A phone call or quick quote application will allow us to determine how much you might be qualified to borrow. Approvals are based on your homes equity and not your current income, job statues or credit score this makes it easier to qualify. In Canada a second mortgage is the first equitable mortgage registered on your title. The Term Second mortgage means, in case of default on the first mortgage, this loan will not have re-payment priority. Priority is given to the “first Mortgage” lender and once that debt has been satisfied then the second mortgage will be paid out.

• Free, no-obligation consultations
• No-hassle home equity loan and mortgage fast application online
• Competitive interest rates
• Flexible terms
• Fast approval

A mortgage broker works with you the borrower to develop strategies and obtain options that allow you to move your homes equity into other areas of your life and in some cases without the additional costs of refinancing your 1st mortgage.

Dealing with a mortgage broker that specializes in second mortgages or home equity loans allows you to obtain the markets most competitive rates and most flexible terms because they deal with a larger variety of lenders and not just the top advertizing mortgage companies. When you deal with us you have the advantage of obtaining our in house money from our variety of private mortgage lenders as well as our in house MIC (Mortgage Investment Corporation) along with a variety of other MIC’s throughout Vancouver, Vancouver Island and the Okanagan.

For clarification on any mortgage terms please click glossary of mortgage terms

Who lends second mortgage money? MIC Mortgage Investment Corporation Mortgage Investment Corporation or MIC is an investment and lending company designed specifically for mortgage lending (primarily residential mortgage lending) in Canada.  Owning shares in a Mortgage Investment Corporation (MIC) enables you to invest in a diversified and secured pool of mortgages. A MIC is governed by the tax regulations of Section 130.1 of the Income Tax Act of Canada and there for is eligible for RRSPs, RRIFs, DPSPs, or RESPs investing. That section of the Act sets out that all dividends paid to MIC shareholders may be treated as expenses for tax purposes by the MIC. Therefore, provided a MIC pays ALL of its net profit to its shareholders each year, the MIC itself is not taxed. This is a significant advantage for MIC shareholders, increasing their yield as the two levels of tax applied to normal corporations are avoided. Private mortgage lenders Private mortgage lenders can be any individuals who have an understanding of mortgages, real estate and sufficient funds to lend. Generally private mortgage lenders are business people or retirees looking to yield a higher rate of return on their savings. These lenders either have unleveraged funds, RRSP’s funds or borrow from a secured LOC from their home and lend out the equity of their assets.

Home equity loan fees 
 
Here is a brief list of possible fees that may apply to your second mortgage or home equity loan: Appraisal fees, Application fees, title insurance fees, lender fee, Broker Fee, ILA fee, early pay-off and other costs are often included in loans. Surveyor and conveyor may also apply to loans, some may be waived.

Want to learn more about your credit score click on Equifax and apply to view your credit.

Pros Refinancing (Home Equity Loans) Second Mortgage

Refinancing may be undertaken to reduce interest rate/interest costs (by refinancing at a lower rate), to extend the repayment time, to pay off other debt(s), to reduce one's periodic payment obligations (sometimes by taking a longer-term loan), to reduce or alter risk (such as by refinancing from a variable-rate to a fixed-rate loan), and/or to raise cash for investment, consumption, or the payment of a dividend.
In essence, refinancing can alter the monthly payments owed on the loan either by changing the loan's interest rate, or by altering the term to maturity of the loan. More favorable lending conditions may reduce overall borrowing costs. Refinancing is used in most cases to improve overall cash flow.

Cons refinancing of (Home Equity Loans) Second Mortgage

  A lot of fixed-term debt contains penalty clauses that are triggered by an early of the loan. In addition, there are also closing and transaction fees typically associated with refinancing debt. In some cases, these fees may outweigh any savings generated through refinancing the loan itself. Typically, one only rationally considers refinancing if the potential for a substantial cost savings exists, or if there is a need to extend the loan due to weak cash flow or other non-recurring commitments. In addition some refinanced loans, while having lower initial payments, may result in larger total interest over the life of the loan, or expose the borrower to greater risks than the existing loan, depending on the type of loan used to refinance the existing debt. Calculating the up-front, ongoing, and potentially variable costs of refinancing is an important part of the decision on whether or not to refinance.

APR (Annual percentage Rate)

When arranging a second mortgage or home equity mortgage there are other costs that increase the annual interest rate. You shouldn’t necessarily accept the lender that offers the lowest interest rate because of the costs in arranging the second mortgage has just as much or even more to do with the actual cost of the loan.
Some of the other costs to look for: Broker Fees, Lender Fees, Legal Fees, Insurance Fees, Appraisal Fees
Simply put, any other fee’s between the money that you receive and the amount registered as a mortgage will be added into the APR. 

Interest rate (Second Mortgage)(Home Equity Loan)

Second mortgage interest rates can start as low as 8.25% and go up depending upon the strength of your application. (Average interest rate is usually 12%). It is a good idea to deal with a private mortgage specialist that has access to in house mortgage money as well as access to a variety of outside private lenders. The big private mortgage lenders don’t always have all the products that could best suit your mortgage application. Dealing with an independent mortgage broker enables you to access a greater variety of second mortgage products offered.

Brokerage fees

Renewal fees

An additional cost in a second mortgage is the renewal fee, which comes at the end of your term. Most renewal fees are around $200.00 but check with your mortgage broker to verify.

Improve your credit score (Techniques to improve or establish credit)

When a person declares bankruptcy or files a proposal, the Office of the Superintendent of Bankruptcy notifies the credit bureau. For first-time bankrupts, the information stays on your credit bureau report for 6 years & for a second-time bankrupt, it stays on your report for 14 years. A proposal is recorded for 3 years after the completion of your proposal. After discharge, you can start to re-establish your credit by doing the following: Talk to your banker and say you want to re-establish your credit rating.  Open a savings account.  Take out a small loan using the savings account as collateral, and then pay it back.  Apply for a credit card with a low limit or a secure credit card using your savings account or pre pay it as collateral.

A "secured card" is a card backed-up or secured by funds you have deposited with the bank or credit union. Several Canadian financial institutions offer secured credit cards and you can link directly to their web sites below:

Pre Paid Credit Cards

Capital One
Horizon Plus
Citi Financial

1. Do not apply for more than one or two credit cards. Each application for credit will show on your rating. Target one or two financial institutions. 
2. Pay your credit card balances on time. 

Canadian Banking articles

Bank of Canada News Releases

CMHC Latest News Broadcasts

Genworth Financial Housing Reports

Genworth Financial News Releases

The information provided on this site is for 2nd mortgage purposes all other mortgage questions or enquirers can be directed to us for we provide full mortgage services from conventional financing through to private lending.

www.yourequity.ca

Mortgage Services:

All types of residential mortgages including mortgages for:
Self-employed, debt consolidation, refinancing,
Renewals, new immigrants, non-residents, foreclosure,
Credit problems, bad credit, bankruptcy, second, third,
Private, low income, reverse mortgages, First time home buyers
Some mortgages subject to credit and income approval.

We arrange second mortgage loans all over Greater Vancouver, Lower Mainland, Vancouver Island, Okanagan, Kootenays, and all over Western Canada.

Lending Areas In BC:

100 Mile House - Abbotsford - Aldergrove - Anmore - Armstrong - Ashcroft - Burnaby - Cache Creek - Campbell River - Castlegar - Chase - Chemainus - Chilliwack - Cloverdale - Cobble Hill - Colwood - Comox - Coquitlam - Courtenay - Cowichan Bay - Cranbrook - Creston - Crofton - Delta - Duncan - Fanny Bay - Gibsons - Golden - Grand Forks - Greenwood - Halfmoon Bay - Harrison Hot Springs - Hope - Invermere - Kamloops - Kelowna - Agassiz - Keremeos - Kimberley - Kitimat - Ladner - Ladysmith - Lake Country - Lake Cowichan - Langley - Langley - Lillooet
Maple Ridge - Merritt - Mission - Nanaimo - Naramata - Nelson - New Westminster - North Vancouver - Oliver
Osoyoos - Parksville - Peachland - Pemberton - Pender Harbour - Penticton - Pitt Meadows - Port Alberni - Port Alice
Port Coquitlam - Port Hardy - Port Moody - Powell River - Prince George - Prince Rupert - Princeton - Quesnel - Revelstoke - Richmond - Roberts Creek - Saanich - Salmon Arm - Sechelt - Sidney - Smithers - Sooke - Sparwood - Squamish - Summerland - Surrey - Terrace - Tofino - Trail - Tsawwassen - Vancouver - Vanderhoof - Vernon - Victoria
Westbank - West Vancouver - Whistler - White Rock - Williams Lake

Lending areas subject to LTV & available lenders
Broker and Lender Fees May Apply