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Markham Second Mortgage

Second Mortgage

A second mortgage is a kind of mortgage against a property with another mortgage in front of it. In this case, the property is provided as security for the mortgage and in the event there is a default in payment, the first mortgage will have first position ahead of a second.

A Markham Second mortgage helps finance a number of household needs. For example;

  • Home repairs
  • Education
  • Debt Consolidation
  • To pay CRA taxes or property tax arrears

Brief Analysis of First and Second Mortgages

In most cases, you will find that the interest rates on the second mortgage are typically higher than the ones in a primary mortgage. This is because in the event a borrower defaults, the primary lender will get proceeds from the foreclosure and only once they have been paid off is when the second lender will get their share.

However, second mortgages have lower origination fees than first mortgages. This makes second mortgages good for a refinancing option.

Types of Second Mortgages

A Markham Second mortgage comes in 3 types. They are; A secured Home Equity Line of Credit (HELOC), Private mortgage or Institutional second mortgage. These are discussed in more detail below.

  • Home Equity Line of Credit

This kind of mortgage is referred to as HELOC. A line of credit refers to a set limit beyond which you can’t borrow further. So when making the drawings on the account, the borrower has a fixed limit to the line of credit. This line of credit is set by the lender which in most cases is a bank or credit union. Interest rates are applied to the exact amount you borrow but not the unused portion of the line of credit. It is, however, important to note that interest rates can fluctuate. If this makes you uncomfortable then the line fo credit can be converted into a fixed rate loan (or mortgage). This particular kind of second mortgage may come in handy when you need to finance expenses over a period of time. A perfect example would be financing a home renovation project.

  • Home Equity Loan

This kind of mortgage usually is a fixed rate loan. The borrower can apply for an amount of money and then pay it back over time. This particular kind of second mortgage may come in handy when you need funds to pay things like CRA taxes or property tax bills or pay off credit card debt.

  • Collateralized Mortgage

A Collateralized Mortgage is a mortgage which can include a first mortgage, second mortgage and a line of credit. Borrowers can be given these loans in parts based on the value of their home. What this means is that borrowers would apply for a first or primary mortgage that covers a certain percent of the home’s value and also apply for a second mortgage that covers the other another percent of the home’s value. These loans and mortgages together have a collateralized amount which is then registered against the title of the property. These days, however, few, if any, lenders are willing to finance 100 percent of your home’s value.

Benefits of Markham Second Mortgage

  • Interest paid on mortgages can be tax deductible (see an investment specialist to find out how). This is helpful if you are self-employed and want to lower your taxable income.
  • The borrower can maintain access to cash for emergencies or as a back up fund.
  • It could also allow you to access equity in your home so that you can purchase a second home or use the funds for other projects.

WHAT PEOPLE ARE SAYING…

  • “Rent-to-own made possible”
    We would like to thank Matthew and his team. We put a lot of money down on a Rent to Own property that we were renting, but we could not get anyone to help us out till we found Mathew. He made it happen and closed on time when know no one else could. From all of us here THANK YOU! We now own our own house!

    C.T., HAMILTON, ON
  • “Best Mortgage Team I've worked with”
    Matthew and his team are the best mortgage team I have ever worked with. They are extremely hard working and bend over backwards to get the job done no matter how complicated or difficult. If there is a way – they will find it. And it will be in YOUR favor. Matthew goes out of his way to set you on a path of success. This is our second mortgage process we have gone through with Matthew, and we are in a better position now than we were the 1st time – all due to Matthews efforts and guidance. After following his recommendations and guidance over the next year we will use Matthew again for our next mortgage and be in an even better position then. If you need a mortgage done, no matter how complicated, call Matthew. He’ll make it happen.

    M.Z. BRANTFORD, ON
  • “No hesitation recommending”
    Matthew’s knowledge, experience and above and beyond work ethic sets an exemplary standard of professionalism and accountability. His integrity and drive is second to none… He truly is a miracle worker!! I have no hesitation in recommending his services to anyone seeking expert assistance. I’m beyond grateful and blessed!!

    M.D., BINBROOK, ON
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    Access mortgage did a great job in getting us a mortgage. It was a tough deal and they were able to get it done when others couldn’t. I would not hesitate to use them again.

    BEA - CAMBRIDGE, ON
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    I just want to say 'thank you' to all of you, especially Matthew. The financial stress started affecting my health and my life. I could not sleep or focus at work. Now it has given me control on my life by connecting me to a great lender. I have gone from being full of stress to being stress-free.

    JULIE - HAMILTON, ON
  • “From full of stress to stress-free”
    I just want to say ‘thank you’ to all of you, especially Matthew. The financial stress started affecting my health and my life. I could not sleep or focus at work. Now Access Mortgage has given me control on my life by connecting me to a great lender. I have gone from being full of stress to being stress-free.

    M.D., MISSISSAUGA, ON
  • “Patient with deep understanding”
    Thank you for all the help that you gave me, most patiently and with deep understanding. I was very comfortable asking you everything and anything. Your team did great job in making me understand the financial side. I have learnt a lot. Thanks to Matthew for taking time to come to my place. He not only did his work, but for a short time, took me back to most nostalgic memories of my life, before I came to Canada. I am also grateful to the lawyer for coming to my place to meet with me, and quickly closing the mortgage and releasing the funds.

    S.S., MISSISSAUGA, ON
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    I can’t say enough how great your company has been. Matthew, thank you so much for making all of this process so easy for us. Our bank would not help us and you were amazing. Your company kept us informed every step of the way, and not once were we made to feel inferior like our bank did. The lawyers you set us up with were also awesome. I will highly recommend your company to anyone looking for mortgages. Thank you so much for getting creditors off our back and setting us on the right track. You guys are all amazing. I’m also so impressed that you came to us do to everything.

    K.K.P., HAMILTON, ON
  • “Best mortgage team I’ve worked with!”
    Matthew and his team are the best mortgage team I have ever worked with. They are extremely hard working and bend over backwards to get the job done no matter how complicated or difficult. If there is a way – they will find it. And it will be in your favour. Matthew goes out of his way to set you on a path of success. This is our second mortgage process we have gone through with Matthew, and we are in a better position now than we were the 1st time – all due to Matthews efforts and guidance. After following his recommendations and guidance over the next year we will use Matthew again for our next mortgage and be in an even better position then. If you need a mortgage done, no matter how complicated, call Matthew. He’ll make it happen.

    C.H. - ST. CATHARINES, ON
  • “Extremely Fast!”
    Access Mortgage was extremely fast and explained everything well. We were very happy with their professional service and honesty. I would definitely refer them.

    LISA - BRANTFORD, ON
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