Our Private Second Mortgage Options in Alberta
The options in the market for a second mortgage are very slim. If you throw poor credit into the equation, and your odds get even worse. Luckily we have several lenders who offer us a private second mortgage in Alberta. The interest rates are not great on these loans, and the lender charges fees. Having said that however, they are a reliable option for those in need.
For many clients who have a good rate on their first mortgage, a refinance into a higher rate is not appealing. This is where a private second mortgage makes sense. Most of the private loans we do are in second place, behind a prime or sub-prime first. If you have any credit issues at all, your options will be very limited when it comes to a second mortgage.
What if I Don’t Have Poor Credit?
For many of our clients, even if they have good credit a private second mortgage can still be the best option. Depending on your first mortgage, you may not be able to refinance or there may not be any bank options for a second mortgage. Private second mortgages in Alberta can be a quick and easy way to access equity in your home.
One thing that private mortgages are not however, is a long term solution. When we arrange one of these loans, we expect the client to have an exit strategy for how to payoff the mortgage in a timely manner. Having good credit makes this easier, and gives us more options when the time is right.
Talk to one of our home loan specialists today about a private second mortgage in Edmonton. We find in most cases, the sooner you talk to us, the more options we will have for you. These loans are extremely helpful as well for clients who do not qualify for a CMHC first mortgage.
5 Things to Know About Private Second Mortgage Financing
- Quick easy access to the equity in your home.
- Rates and fees can vary a fair bit, but you need to be aware of any costs to renew the mortgage if your exit strategy won’t get you out after the year (or however long the term is for the loan).
- If you take an interest only payment option, your loan will not go down and even may go up depending on costs of renewal or fees mid term.
- If you don’t have a well laid out exit strategy for that loan, your situation will not improve. Private mortgages are not a viable long term option.
- Understand that the rate is not the rate when it comes to private loans, you must factor in the cost of the fees to know exactly what that mortgage is going to cost you.
Prime Second Mortgage Options
Getting a prime second mortgage in Edmonton or throughout Alberta is not always easy, lenders feel much more secure dealing in first mortgages. We do however work with lenders who offer these loans under the right circumstances. Just like a new first mortgage refinance, you will need clean credit, the required equity, a marketable property and of course the income to service the new loan.
A second mortgage can be a great option if you are in a low rate first mortgage or if you simply have a large penalty to get out of your first mortgage. Whenever possible we will try to get you a prime second mortgage as the first option. If this is not possible than usually refinancing your first mortgage is the way to go. Our private second mortgage options are usually the last resort due to the cost of the financing. Having said that, they can be a very effective short term option.
Talk to us today about our second mortgages options to see if they may be the solution you need. We have a number of lenders that are located right here in the city who specialize in these types of situations