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Are you looking for a Second Mortgage that will cater to your needs? Do you have:
- Inadequate credit score?
- Facing a financial situation?
- Income not enough to qualify at the banks
- Overbearing repayment schedules?
- Facing a long and extensive approval process ?
- Life situations causing you stress like illness, disability, death of a loved one?
If any of these situations strike a note for you, Freedom Capital can help! With custom-tailored solutions and seamless approvals, our financing experts ensure every borrower’s needs are met.
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What is Second Mortgage?
A second mortgage allows you to borrow against property in addition to a primarily mortgaged property already in place by placing a new mortgage in a junior/secondary position. You can secure this mortgage by using your house as collateral and tapping into your property’s equity.
Real estate is essentially a fixed asset. Over time this asset accumulates value. By tapping into your home equity and getting a second mortgage in Canada you can finance your goals and projects without selling your real estate.
BENEFITS OF TAKING A SECOND MORTGAGE?
Pay for Renovations or Improvements
With this mortgage, you can finance renovations or upgrades of your home. Retrofits and renovations are excellent ways to increase property value. A better-maintained property also generates a higher profit when sold. You can easily use your 2nd mortgage as an investment towards your real estate.
Consolidate Debt
Getting a second mortgage in Canada is a strategy that you can use to consolidate all your debt. Any liabilities, such as lines of credit, car loans and credit cards, can be paid off with debt consolidation. You can group all your debts into one monthly payment. With a lower interest rate and easier payments, your debts are reduced, resulting in more cash flow and can boost your credit score.
Business Investment
Did your bank say NO to your business application or looking for alternative business loan options? If so, pulling equity via a mortgage can help. It can be a great way for you to access funds from your other real estate holdings. Use these funds to invest in your business or start a new business.
Investment Income
By tapping into your equity, you can create an additional revenue stream for yourself and your family. Using your equity, a mortgage can be used to purchase an investment property, invest in stocks, purchase land, buy a vacation home or fund other investments. This can be a great opportunity for borrowers looking to expand their financial portfolios.
Daily Expenses
If you have high day to day expenses, a mortgage can be the solution you need. With a private mortgage, you can cover your daily expenses with ease. Overcome high interest rates, stressful debts, and hard-to-meet financial obligations.
Improve your Credit Score
High Debt and past due bills can negatively impact your credit score. This can make it hard to qualify for a mortgage. If you have a bad credit history or a low credit score because of debt, we have some solutions. Getting a 2nd mortgage and paying off high interest debt can build your credit and eradicate any liabilities negatively impacting your credit score.
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How is Freedom Capital’s Second Mortgage Different?
Nowadays, conventional banks are very rigorous in their mortgage process. A conventional bank bases its approval on two criteria: income and credit. This causes limitations of how much you are approved for and restrictive lending offerings. You might go to a bank in hopes of applying for a mortgage of $700,000 only to find out the bank will approve $600,000 or even less.
At Freedom Capital, we offer lending options to our clients that conventional banks are unable to help with. We offer freedom to look into various options. Our clients and their needs are our topmost priority.
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How toApplySecond Mortgage?
The application process for a 2nd mortgage can be very simplistic if you meet the basic requirements. Our approach is different from others:
- Rather than extensively evaluating our client’s income or creditworthiness, we only look at equity
- Valuation and total encumbrances(mortgages) are our focus.
- If a borrower meets our minimum equity requirement, they can get approved for a 2nd mortgage with ease.
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Funded by Us
Recently Funded
Banks Said No for Equity Pull – We said Yes and provided More Funds
Clients has been wanting to do renovations for years. But where can they get the funds from to get started. With inflation going up and interest rates going up, the banks said no when they asked for a small renovation loan. They reached out to Freedom Capital for a second mortgage renovation loan. We got in done in less than a week and clients had funds in their hands a week later.
Mortgage Amount : $282,000.00
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Renovation Mortgage for an investment property for higher rental income
Client was looking for an equity take-out mortgage to renovate an investment property and increase rental income. Once completed and rental income is established, client will seek to consolidate the mortgage with her current financial institution and use the new higher rental income to help qualify.
Mortgage Amount : $230,000.00
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Downpayment for Rental Purchase with Approval in less than 2 days!
Clients were looking for options for a mortgage on their rental property to invest in another property purchase. We were able to provide approval in less than 2 days and tap into their equity for maximum loan to value.
Mortgage Amount : $220,000.00
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Equity Pull for High Interest Debt and Cash flow Funds ready less than a week
With prime rates rising and credit card interest piling on, one of our self employed client reached out and ask if we could consolidate their high interest debt. We were able to fund approximately 2.4M as a mortgage with approval in less than a week. Lender gave some extra funds for cashflow so he could continue to run his business.
Mortgage Amount : $2,400,000.00
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Equity Take Out for Business Cash Flow
Our client is self employed and worked with us many years ago. Due to the slow down in economy and rising costs, our client reached out to us to obtain financing for his business. We obtained a line of credit as a mortgage on his home. He was able to have ample funds to keep his business running and have more funds available if he needed more. We always work with you to get the best solutions.
Mortgage Amount : $107,000.00
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Financing for Renos!
A client reached out to us looking for funds to renovate. They were interested in purchasing a new home, however due to the latest mortgage rate hikes affecting their buying power, they decided to renovate their current home and wait out the current market. We gave them access to funds for a new kitchen, update the flooring, bathrooms, and apply fresh paint. The home will be ready for sale when the market picks back up, and in the meantime they get to enjoy their newly renovated home!
Does your home need a facelift? Tap into your equity to make those repairs you’ve been putting off.
Mortgage Amount : $60,000.00
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FAQs
Freedom Capital has one of the fastest turnaround times in the industry. Subject to the type of mortgage you are applying for, you can potentially get mortgage approval in 24 hours*.
Since these mortgages are riskier for lenders, they have higher interest rates. However, at Freedom Capital, we don’t get paid on rate, we obtain terms that make sense for our borrowers.
To get a second mortgage you are not obligated to work with the same lender. You can reach out to new lenders and compare deals to settle on the best option for you.
Banks approve loans based on two major factors;
- Your credit score
- your net income.
If your credit score is below 680 and your income is not high enough to cover your mortgage and your other credit facilities, you will NOT get approved.At Freedom Capital, you are not a ‘number’ to us! We use a common-sense approach while approving your loans. No red tape, no waiting for weeks. We simply require the equity and will provide you with a viable, no-obligation option.
A mortgage broker can help save your time, energy and money. It is better to work with a broker as they help borrowers understand the mortgage market. With a broker by your side, you can find the 2nd mortgage you need.
Absolutely! Unlike banks who only look at income, we can leverage the equity you have in other real estate assets.
With a Freedom Capital 2nd mortgage you can cover a variety of costs, including but not limited to:
- Renovation, construction or improvement of a property
- Debt consolidation
- Invest in properties or other financial ventures
- Invest in your business
- Cover daily expenses
- Obtain funds in high-stress life situations such as illness or sudden death in your family
- Life situations
Freedom Capital provides Second Mortgage in several cities and provinces in Canada. The list include:
- Second Mortgage in Alberta
- Second Mortgage in British Columbia
- Second Mortgage in Ontario
- Second Mortgage in Surrey
- Second Mortgage in Vancouver
If you default on your loans, loans secured against your home will have a priority in which they will be repaid. In the event of foreclosure, the loan that holds the first priority will be repaid in full before any other loans secured against your home. The remaining amounts after the first loan has been paid off will go towards the second mortgage, and so on.
Homeowners may opt for a second mortgage for a variety of reasons. Second mortgages can be used to consolidate debt, pay off other loans, fund a down payment on another property, or cover any other expenses that require a significant sum of money. However, second mortgage rates are typically higher than primary mortgage rates, as lenders assume more risk with second mortgages. It is a viable option for those with a low credit score or a spotty credit history, but it is important to note that you will need to approach a private lender, also known as a “C lender,” where you will pay higher interest rates.
To purchase a second property in Canada, such as an investment property, a second mortgage may be a helpful option. Keep in mind that a down payment of at least 20% is required for a secondary home. If you or any family members plan to reside in the secondary home rent-free, you may pay less than 20% down payment. Note that the Canadian Home Buyers Plan, which allows you to tap into your RRSPs, does not apply to a second property. Costs for buying a second property are similar to your first purchase, including valuation fees, legal fees, and registration fees and property transfer tax.
