Second Mortgages

A second mortgage is a loan taken out against the equity in your property, in addition to your primary mortgage. It holds a secondary lien position, meaning it ranks behind the first mortgage in terms of repayment priority. Second mortgages are often used for debt consolidation, home improvements, or other large expenses.

Qualifying for a second mortgage typically depends on the amount of equity you have in your property, your credit history, income, and current debt levels. Private lenders offer more flexible qualification criteria, allowing property owners with less-than-perfect credit or unique financial situations to access their equity.

Yes, you can get a second mortgage on a commercial property. By utilizing a certified appraisal, we can help leverage one of your company’s largest assets. Whether it's a hotel, restaurant, or retail store, we work with a variety of businesses to secure second mortgages. While commercial properties come with their own specific lending criteria and options, our creative team will work to meet the unique needs and goals of your business.

Yes, you can get a second mortgage on farmland or an acreage. These types of properties can be challenging for most traditional lenders due to factors like location and land type, which often limit mortgage options. However, our Alberta-based lenders specialize in farmland and acreage properties, offering solutions tailored to your needs. By using our resources, we can help maximize the potential value of both the land and any homestead, providing you with financing options that other lenders may not offer.

No, second mortgages are generally not available for mobile homes. They are typically limited to traditional homes, condos, farms, commercial properties, and other permanent structures that have established resale markets.

A second mortgage can be used for various purposes, including debt consolidation, home renovations, avoiding foreclosure, funding education, managing unexpected expenses, starting a business, or making investments.

The amount you can borrow depends on the equity available in your property and the lender’s criteria. Generally, you can borrow a percentage of your property's equity, with private lenders offering more flexibility compared to traditional lenders.

Yes, interest rates for second mortgages are typically higher than those for first mortgages. Since second mortgages are riskier for lenders, the increased interest rate reflects that risk. However, they are usually lower than rates for unsecured loans or credit cards.

Repayment terms for a second mortgage can vary and often include both fixed-rate and adjustable-rate options. The term length can range from a few years to longer periods, depending on the loan amount and your financial situation. Your mortgage broker can help tailor the repayment plan to suit your needs.

The approval process for a second mortgage typically takes a few days to a few weeks, depending on the lender and your financial situation. Private lenders often provide faster approvals compared to traditional banks, making it easier to access funds when you need them.