Second Mortgage

Can you get a mortgage after a bankruptcy?

Yes, even if you have declared personal bankruptcy, you may still qualify for a mortgage in Canada. Generally, if you apply for a mortgage after bankruptcy, lenders will require you to start re-establishing your credit before they will grant you a mortgage.

In addition, before approving a mortgage to persons with bad credit, mortgage brokers will make sure that they qualify for the mortgage. Read the rest of this entry »

Reduce your monthly payments with a debt consolidation and refinance with a Second Mortgage

One of the most popular forms of debt consolidation loans in Canada is a debt consolidation mortgage loan on your home. In Canada, lenders will provide you with a mortgage (a loan against your house) for up to 95% of the value of your home.

If you own a house, you may be able to significantly reduce your debt payments by refinancing your existing mortgage, or taking out a second mortgage on your home. Read the rest of this entry »

If you are in Canada, and don’t know what “Vendor Take Back Mortgage” is? Well, here is an explanation.

The seller “takes back a mortgage,” or finances the purchase of the property he/she is selling, by accepting principal-and-interest payments over a period of time, instead of being paid the lump sum in full on Day One. No bank is involved, since the seller him/her self is doing the financing; “being the bank.”

The buyer draws up a Contract For Deed, a Promissory Note, and a Mortgage, three separate documents, signs them and gets signature notarized, and the seller signs them and gets signature notarized. The execution of this type of agreement merely starts the process; the seller gets only a down-payment on Day One! Read the rest of this entry »

You still have options for getting second mortgage with your bad credit but check your pocket again.

In Canada, if you have a good credit, you could borrow up to 90% of your home value and enjoy low rate of about 6.50% for 1 year term. For damaged credit you will pay over 10% and up to 14.75% for 100% financing (100% financing means that you borrow up to 100% of your appraised value less your 1st mortgage balance).

In general, it really depends where you actually fit in. If your credit is good you’ll get a good rate, but if your credit is poor then be prepared to pay a higher rate. If your credit is really bad then you may be looking at private lenders with rates around 15% and may be limited to maximum 85% of your home value or less, minus 1st mortgage balance. Read the rest of this entry »