A second mortgage is just what it sounds like. It is mortgage taken on property that is already mortgaged. A second mortgage carries more risk to the lender than the first mortgage as the first mortgage will be serviced first if the debtor defaults on the payments.

Second Mortgages – Cash from Property Equity

Second mortgages are in fact short term loans that typically run from one to five years. People usually make these loans to improve their property or to consolidate expensive debt. Granted second mortgage interest rates are usually higher than the interest rate on the first mortgage, but they are still a lot less expensive than other forms of debt such as credit card debt that attracts interest rates of almost thirty percent. Second mortgages are also handy for entrepreneurs who wish to grow their businesses by converting the equity tied up in their fixed property into cash.

Second Mortgages – the Preserve of Private Lenders

Generally speaking conventional banks are not active in the second mortgage industry so second mortgages are usually the preserve of private lending companies. The most efficient way to find a private lender is to contact a mortgage broker. These intermediaries usually have a broad spectrum of loan providers on their books and they can match your requirements with the best private lender. Since they are familiar with the industry they may even offer suggestions or promote products that you may otherwise never have heard of.
Private lenders are a lot more flexible than conventional banks and they can offer applicants customised products that can include interest only payments. They are customer friendly and you will have a chance to speak to them about your requirements so that the product that you finally agree on is tailormade to your needs.
Because private lenders are not regulated by government or by Central Banking requirements, they are able to waive some of the requirements for credit worthiness. Private Mortgage providers are more interested in the market value of the property that will stand as collateral for the loan than they are in the business of the borrower. They do however have some requirements as they have to protect their own businesses.

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Featured Rates

FIXED

LenderRateTerm
Mortgage Lendwise RateLendwise

2.39%

5-Year
Mortgage First National Bank RateFirst National Financial

2.69%

4-Year
Mortgage RMG RateRMG Mortgages

2.64%

3-Year
Mortgage Street Capital RateStreet Capital Bank

1.99%

2-Year
Mortgage TD Bank RateTD Bank

2.69%

1-Year

VARIABLE

TermRate
5-Year Variable

2.85%

3-Year Variable

3.10%

OTHER

TypeRate
Line of CreditStarting at

3.00%

Equity LoansStarting at

5.99%

Private MortgagesStarting at

5.99%

Criteria for Second Mortgages

Most private lenders will not offer a mortgage where the value of the mortgage equals eighty percent or more of the appraised value of the property. If the borrower has put a down payment of at least twenty percent on the property the private lender is much more likely to approve the second mortgage. When applying for a second mortgage it is likely that the private lender will scrutinise the income of the applicant to satisfy himself that the borrower is capable of servicing the loan.

Private Mortgage Lender’s Interest Rates

As previously stated a second mortgage is riskier than the first so it follows that the interest rate on these loans is higher than rates charged on conventional mortgages. The annual interest rates on second mortgages can vary from seven to thirteen percent. The borrower will also be liable for mortgage initiation costs, which can include appraisal costs, legal fees, broker fees and lender fees. These are sometimes included in the loan so that they don’t have to be paid at the start of the contract.

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My wife and I recently purchased our first place, so we started to look for a mortgage broker. Neither of us really knew what we were doing, so it was important to us that we could find someone who could guide us through the whole process. After some searching we finally stumbled upon the guys at certified mortgage broker We worked with leon and his team, got a great rate and they took their time to explain and guide us through the whole process. Great rates and great service. Would absolutely recommend.
Linderman Beadles
Linderman Beadles
06:16 26 Feb 18
Got tired of sow service and mediocre rates from my bank, so I started looking for a mortgage broker. Had some family friends recommended Leon and his team, so decided to check them out. Was very impressed with Leon, he guided me through step by step, recommended a mortgage and I ended up switching to him. My rate is better and he always answers call and emails right away.
Gina Carroll
Gina Carroll
05:06 28 Feb 18
Was looking for a new mortgage broker, my old one moved so had to find someone else to work with. Didn't really know how to go about it so just started googling. After some searching and talking, decided to go with the guys at certified mortgage broker. No one could match their rates, plus their customer service is honestly some of the best i’ve seen.
Deane Laflamme
Deane Laflamme
04:40 27 Feb 18
My wife and I recently purchased our first place, so we started to look for a mortgage broker. Neither of us really knew what we were doing, so it was important to us that we could find someone who could guide us through the whole process. After some searching we finally stumbled upon the guys at certified mortgage broker We worked with leon and his team, got a great rate and they took their time to explain and guide us through the whole process. Great rates and great service. Would absolutely recommend.
Stephnie Boyles
Stephnie Boyles
13:59 15 Nov 17
Got tired of sow service and mediocre rates from my bank, so I started looking for a mortgage broker. Had some family friends recommended Leon and his team, so decided to check them out. Was very impressed with Leon, he guided me through step by step, recommended a mortgage and I ended up switching to him. My rate is better and he always answers call and emails right away.
Billye Peralta
Billye Peralta
13:38 19 Nov 17
Was looking for a new mortgage broker, my old one moved so had to find someone else to work with. Didn't really know how to go about it so just started googling. After some searching and talking, decided to go with the guys at certified mortgage broker. No one could match their rates, plus their customer service is honestly some of the best i’ve seen.
Moore Hoover
Moore Hoover
02:25 16 Nov 17
We worked with Leon and he provided a thorough and a professional process in re-financing our mortgage. Communication was consistent, he was easy to reach and documents were processed quickly. Most importantly, we got a great rate that has us savings hundreds of dollars per month on our home. These guys really know what they're doing.
Melissa Brown
Melissa Brown
00:12 18 Jul 17
As third time home buyers we couldn't be happier with the service we got from Certified mortgage broker. The team did a great job working on our loan. Everything was fast, easy and transparent. Probably the best mortgage experience i’ve ever had.
Riley Clements
Riley Clements
15:27 20 Jul 17

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