Are you a homeowner with an existing mortgage, looking to take out a 2nd mortgage to consolidate debts, pay for renovations or other large expenditures? Shopping for a 2nd mortgage is similar to the process you would go through for a first mortgage however the interest rates for a second mortgage tend to be higher, and the criteria for approval can be different. HW Advantage mortgage broker in Burlington can help you navigate the application process and find you great mortgage rates in Burlington on mortgages from institutional or private lenders.
2nd Mortgage versus HELOC
Many people don’t know the differences are between a 2nd mortgage and a home equity line of credit (HELOC). Though the application process and requirements are similar, the flexibility, repayment options and the interest rates can be very different. In order to choose the right option for your situation, you need a professional. HW Advantage mortgage broker in Oakville will explain each type of lending product, help you decide which financing option suits you best and help find the best lending rates around.
What Are Private Mortgages?
With increasing stringency on mortgage lending rules, some people encounter difficulty in getting a mortgage or HELOC in which case your mortgage broker may suggest a private mortgage. Private mortgages are loans sourced from private entities such as family, friends, or other individuals not associated with a financial institution. Private mortgages tend to be short term solutions to help borrowers while they establish or improve their credit score, or as emergency funding to cover an unexpected cost. A mortgage broker can help you access private lending and ensure that the arrangement is financially rewarding for both parties.
Advantages of a Private Mortgage
Banks and other lending institutions require a lot of paperwork due to the strict regulations and criteria they must establish before giving you a mortgage. For many people, meeting all of the requirements set out by banks is difficult or impossible. For example, self-employed people may not have financial statements readily available to show the bank, people whose employment status has changed recently, or young people who do not have well-established credit scores may have trouble meeting the criteria set forth by mortgage companies and regulators. Private mortgages tend to have less stringent rules because lenders are willing to accept a greater degree of risk and more creative repayment options such as interest-only mortgages. This is great news if you’ve had trouble getting a mortgage. There are still options available to you, however, be aware that you’ll pay higher mortgage fees for the flexibility of private lending.
How Do I Find a Mortgage Broker Close to Me?
If a second mortgage or private funding sounds like an option you would like to explore, you may wonder ‘Where can I find a mortgage broker close to me?’ HW Advantage is a mortgage broker in Burlington and Oakville that can help evaluate what type of mortgage is best for you, and help you to access private mortgage lenders.