Dominion Lending Centres’ Mortgage Force is a trusted name when it comes to securing second mortgages in Edmonton. Our team of experts helps to cut down our customers’ monthly mortgage payments on second mortgages. Don’t pay minimum payments on credit card bills, car loans, and other unsecured debt when you’re only paying off the interest at a high rate.
A second mortgage is a type of mortgage that allows you to use your home’s equity as the collateral. You can often borrow a much larger amount than you usually would be able to if the loan was unsecured. This is very similar to the original loan you got in order to purchase the home, but there is a slight difference.
When you buy your home, there is typically a mortgage charge placed against the title. This means that if a borrower defaults on the mortgage loan, the home can be repossessed by the mortgage lender. Technically, although you treat your home like your own (unlike renting), the mortgage lender has the legal right to repossess it if the borrower stops making payments.
A second mortgage goes in behind the first mortgage on title. You will have two mortgages registered against one property. This is usually done when refinancing the existing mortgage is not an option, you won’t qualify, or if it doesn’t make sense to do so. This can be a great way to take equity out of your home without disturbing the first mortgage. This equity can be used for investment purposes, pay tax arrears, do renovations or to consolidate high-interest debt.
Most homeowners in Edmonton who get second mortgages do so because they need funds in a timely manner. Their home is the most valuable asset they have to use as collateral. This may mean that you need to make a very large home repair or upgrade. It may mean that you want to send a child to college. It may mean that you want to buy another property to rent out. Whatever the case may be, a second mortgage can be used as a way to get a large amount on a loan.
Second mortgages are typically awarded as either a single lump sum (useful for making one large purchase, like upgrading your home to solar power) or a line of credit (useful for paying something in installments, such as yearly tuition fees). With the second option, we can set up a line of credit which will allow you to borrow funds as required.
In either case, the lender determines how much they will loan you based on the value of your home. From there, you’ll choose the type of interest rate, such as a fixed rate or a variable rate, that works for you.
Second mortgages are loans against the equity in your home that sit behind the existing mortgage on the title of your home. Dominion Lending Centre’s Mortgage Force offers clients advice for solutions on second mortgages in Edmonton and the neighboring areas for; debt consolidation, investing in a small business, and post-secondary education for your children, as well as the unexpected costs that come up from time to time.
The amount available to homeowners for second mortgages depends on the equity they have in their house. Home equity is the value of your home minus all the debts you have against your home. If you want to calculate the equity in your home, look at the following example:
Let’s assume your home is valued at $450,000. Our mortgage team can help provide you financing of up to 80% of this value in this case, that’s up to $360,000. Let’s assume you’ve borrowed $300,000 against this already. This leaves you with the option of securing a second mortgage of up to $60,000!
Second mortgages are loans against the equity in your home that sit behind the existing mortgage on the title of your home. The Mortgage Force Team Edmonton Dominion Lending offers clients advice for solutions on second mortgages in Edmonton and the neighboring areas for debt consolidation, investing in a small business, and post-secondary education for your children, as well as the unexpected costs that come up from time to time. Learn more by calling us at 780-466-9898.