Latest Mortgage Rates
|Updated March 25, 2016||0.0 %||0.0 %|
|Variable ARM||2.15 %||2.8 %|
|1 Year Closed||2.29 %||3.09 %|
|3 Year Closed||2.49 %||3.19 %|
|5 Year Closed||2.49 %||3.29 %|
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Second Mortgage Toronto / Ontario
People in Toronto are using second mortgages to help consolidate high interest debts or pay for any other expenses. A second mortgage helps if you have a low interest rate first mortgage and do not want to discharge this mortgage due to penalties. Penalties when breaking a first mortgage can be pricey, and you should always contact the lender to see what that fee would be.
Second mortgage interest rates in Toronto and all of Ontario are usually higher because it is secondary to another loan against the same property. Second mortgages are subordinate because if the loan goes into default, the first mortgage gets paid off first before the second mortgage does. Making the second mortgage a bit more of a risk. Depening upon your credit is what your interest rate could be. If its poor, expect to pay somewhere within the range of 11%-17% for a second mortgage.
Second mortgage qualifications are usually based on the equity you have built in your home as well.
With sufficient credit and income I can usually get up to 85% of the value of your home if your in a largely populated city like Toronto or the Greater Toronto area. In even bad credit cases I can usually get second mortgages in toronto and surrounding areas up to 85% of your homes value. The less prime of an area your home is in, the less amount I can get. If your located outside of a large city the most I may be able to get may be in between 75-80%. Second mortgages lending varies upon lenders and the area for where your home is. I can find you that toronto second mortgage with the lowest rates possible for your situation.
Usually, when considering the application for a second mortgage in Ontario, lenders will look for equity first, a low debt-to-income ratio, your credit score and employment history.
The second mortgage money can be used for any purpose:
- Debt consolidation
- Down payment for an investment property
- A new car