A second mortgage Canada loan is essentially a second loan obtained against your property that has previously been, or is, mortgaged.
A second mortgage can make good sense in the right circumstance and can help save your money. If you are thinking about applying for a second mortgage in Canada, here is everything you need to know.
How To Apply For a Second Mortgage Canada
Second mortgages in Canada are considered risky for lenders. This is why lenders need an extensive list of information regarding various aspects of the mortgage. The four main categories a lender will evaluate are as follows:
Lenders require specific documentation to approve a second mortgage Canada. To ensure you can repay the second mortgage, lenders require proof of employment and/or other sources of income such as investments, rental income, or freelance income.
Your credit score is crucial for the application process for a second mortgage in Canada. To access your credit score, you need to pull your credit report. Your credit report is an analysis of your past and present loans, these can be student loans, home equity loans, mortgages, etc. A credit report also contains data of all of your open credit lines such as credit cards and bank accounts.
The amount you can borrow with a e second Mortgage Canada depends on how much equity you have built up in your property. The greater your equity, the better the mortgage terms.
The lender will need to make sure that the property is worth the amount that the applicant claims. They can do this with a quick property evaluation.
This is all necessary to complete the application process for a second mortgage in Canada. Once your application is approved by an underwriter, it will be sent out escrow agent or closing attorney and you will receive your mortgage in due time.
If you need easy access to immediate funds, then Freedom Capital should be your go-to!
Get The Mortgage You Need With Freedom Capital
At Freedom Capital, we have a unique process through which your second mortgage will get approved within 48 hours*. No need to wait for weeks for you to receive your finances. In a matter of days, we will hand you your required funding.
Our priority is to create fast and simple access to the money you, the borrower, need. With products that aid us in first and second mortgages, as well as multimillion-dollar commercial and construction loans, we are the lender you desire.
Whether it be a solution to high rate debts you are looking to consolidate, immediate funds required for a business, purchase of another real estate asset or perhaps funds you want to put towards a home renovation project -we can help!
We provide creative financing options for our borrowers and ensure that each borrower receives their desired second mortgage in Canada.