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Second Mortgage Mississauga

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Everything You Need To Know About Second Mortgages In Mississauga

Second Mortgage MississaugaIn most recent years, Mississauga, Ontario has been one of the most appreciating real estate markets in the Greater Toronto Area, and all of Peel Region. With the surge in home values, as a homeowner, you have the benefit of accessing the equity in your home with a second mortgage in Mississauga up to 90% LTV (loan-to-value).

What Is A Second Mortgage?

A second mortgage is a stand-alone mortgage that is registered on the title/deed of a real property, in second position behind an existing first mortgage charge. Since the loan is registered in 2nd position, you won’t be required to break your 1st mortgage or make any changes to it.

What Can A Second Mortgage Be Used For?

While there are no restrictions to homeowners on how they use the funds they receive from their Mississauga second mortgage, here are some common reasons homeowners take out a second mortgage:

Have Questions About Our Second Mortgage Mississauga Offer?

Call us today to speak to a licensed mortgage broker in Mississauga.

How Does A Second Mortgage Work In Mississauga?

Getting a second mortgage in Mississauga is a simple process, and the requirements for getting approved are fairly easy – all you need is equity! Mississauga second mortgage lenders don’t require any proof of income, and they don’t have a minimum credit score requirement. This means, even if you have bad credit and can’t prove your income, you can still qualify for this loan.

Mississauga Second Mortgage Approval Process

Since our second mortgage Mississauga approvals are based on equity, the most important part of the process is confirming the home value and the balance of the first mortgage. 

In most cases, when looking to access 80% LTV or higher, an appraisal will be required. There are many instances where an appraisal may not be required, as long as the lender can confirm the property value based on their own resources, or where the loan-to-value ratio is low (below 60% LTV).

 

Steps to getting a second mortgage:

  1. Complete an online quote to see how much you can borrow.
  2. Talk to a licenced mortgage broker in Mississauga.
  3. Complete a 3 minute online application.
  4. Your mortgage broker will place an order for an appraisal.
  5. Compare second mortgage rates from direct private lenders.
  6. Choose the best interest rate.
  7. Review and sign your mortgage commitment & disclosure documents.

What Documents Will I Need To Provide?

When applying for the second mortgage Mississauga Program, homeowners should prepare the following documents, as they will be required at some point during the transaction:

 

  • Two pieces of valid government-issued photo ID – for identification purposes.
  • 1st Mortgage Statement – To confirm your 1st mortgage balance & available equity.
  • Property Tax Statement – If you’re behind on your property taxes, lenders will require them to be paid up-to-date from the proceeds of the second mortgage on the closing date.
  • Existing home insurance policy – The second mortgage lender will require you to add them to your insurance policy, in the event of a flood or fire, to protect their investment.

Mississauga Second Mortgage Rates

Second mortgage rates in Mississauga are most commonly based on the loan-to-value (LTV) of the second mortgage. A good rule of thumb to consider, is when the LTV is higher, the interest rate will be higher. The reverse is also true – the lower the LTV, the lower the rate you can get.


See the chart below to compare second mortgage rates in Mississauga based on LTV:

 

LTV (loan-to-value)

Interest Rate

85.01% to 90%

8.99% – 10.99%

80.01% to 85%

8.99% – 9.99%

75.01% – 80%

6.99% – 8.99%

65.01% – 75%

5.99% – 7.99%

65% or lower

5.99% – 6.99%

Consult With Mortgage Brokers In Mississauga For A 2nd Mortgage

Our Mississauga mortgage brokers can help you apply to direct second mortgage lenders in Mississauga. 

Get the help of expert mortgage brokers to get the best mortgage option that is most suitable for your needs.

Bad Credit Approved

ANY CREDIT SCORE

Get approved for a second mortgage Mississauga with good or bad credit.

No Income Verification

NO INCOME PROOF

No income verification documents needs for a second mortgage Mississauga .

Approved On Equity

EQUITY APPROVAL

Approval are mainly based on equity, up to 90% LTV.

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