What is a Good Interest Rate on a Second Mortgage in Vancouver BC? 3.45%%!!
/in Mortgage Broker Vancouver /by Rebecca AwramNOW STARTING AT 3.45%!!
What is a second mortgage? A second mortgage is a lien on your property in the second position behind your first mortgage. This is considered by most lenders in British Columbia to be a higher risk position, and thus their second mortgage rates are typically priced according to this risk.
As a general statement, you can expect most interest rates on second mortgages to be higher than the interest rates on first mortgages. If the mortgage broker arranging your 2nd mortgage can do it through the same lender as your first mortgage, that can be a good strategy for getting a better rate on your second mortgage.
Alternately, if your loan-to-value is quite low (the ratio of your existing mortgage to the value of the property), and your credit is solid, we can arrange a line-of-credit in second position, a ‘second mortgage line of credit’ at the same rates as we would get for a secured line of credit in the first position. This is the optimum situation! In these situations, we can often place the 2nd mortgage for prime plus half a percent. You must qualify under the federal government “stress test” for income and debt ratios though, and this has become increasingly challenging for many borrowers.
Sometimes you’ve maxed out already, or your credit is bruised. In that situation, a mortgage broker that is experienced in arranging second mortgages will spend a lot of time shopping for the best rate and terms from many private and institutional lenders. This will save you a lot of money on your second mortgage. Private lenders are not subject to any stress tests, but they do price files according to all the same variables and their own internal appetite for risk. They consider things like location, property type, property condition and of course the borrower themselves (income, credit score, credit history, other debt obligations, etc).
Where is the best place to get a second mortgage? It is so important to not fall prey to the cute little jingles and songs you hear on radio and television ads for private mortgage lending in the lower mainland. If you go to them for your second mortgage, you will often pay a lot more than if you had your mortgage broker negotiate your interest rate for you. In fact, those same lenders often give mortgage brokers better rates on the same file that was already submitted by a consumer directly! Someone is paying for all those television and radio plays ~ YOU!
Rebecca has lots of experience negotiating rates and terms for second mortgages in the Vancouver lower mainland and, actually, can also get quotes for all over British Columbia. She’ll take the time….. She has offices in Surrey, Port Coquitlam and Maple Ridge so if you prefer to meet in person there are many options. Most consultations and applications can be largely handled by phone and email, as well.
Mortgage Brokers Vancouver
DLC Canadian Mortgage Experts
17650 66A Ave, Surrey, BC V3S 4S4
https://bc.communitylendingcentre.com
Bad Credit Mortgages in British Columbia
/in Mortgage Broker Vancouver /by Rebecca AwramGood people can have bad credit and can still get a mortgage! We all face bumps in the road…. there can be many reasons why we have damaged our credit and find out at our local BC bank that we can’t get us the mortgage we had hoped for. Late payments, collection items, and disputed accounts are all examples that can lead to the arranging of a mortgage for people with poor credit.
The good news is that even people with bad credit can get a mortgage! The process of gaining a mortgage with bad credit has never been easier but the not so good news is that people in this situation will pay a higher interest rate and possibly even a lender fee. So, a poor credit mortgage should not be viewed as a long-term strategy. They are a short-term strategy. It is just a step in the rebuilding process, and a good mortgage broker that specializes in poor credit will help you come up with a good plan.
A bad credit mortgage is a means to an end, it is not the end itself. Everyone needs an exit strategy. Working with a BC mortgage broker that specializes in poor credit mortgages can help you get back on track, and find out what steps are necessary to repair the credit and come up with a plan to return you to a conventional mortgage with an A lender. A mortgage for people with damaged credit is best optimized over one, two or three years. If you keep your credit neat and clean over the period of time recommended, you should be able to transition to a mortgage with best market rates.
Often, consumers will hear catchy little songs and jingles on the radio or television from lenders that offer private financing. It can be tempting to contact them yourself and put a bad credit mortgage in place. This is not a good idea. Those same lenders often have better rates and terms available for brokers that call with the exact same client!! That’s because they know that brokers are contacting MANY alternate lenders and that they must offer their best rate right away or they will lose out to another lender.
Someone with great credit will often receive a similar good rate no matter what bank they go to. It is very, very different for bad credit mortgages. A mortgage broker skilled in the placement of mortgages for people with damaged credit makes a big difference in the rate, fees, and terms that are presented to you. If you’ve already approached a private equity lender yourself, be sure to get a second opinion from your broker. It can save you a lot of money, and working with a professional ensures you come up with a solid plan.
Rebecca is licensed to place mortgages anywhere in British Columbia and specializes in bad credit mortgages as a top bad credit mortgage broker in BC. She has offices in Surrey, Port Coquitlam and Maple Ridge so if you prefer to meet in person there are many options. Most consultations and applications can be largely handled by phone and email, as well.
Vancouver Mortgage Broker
DLC Canadian Mortgage Experts
17650 66A Ave, Surrey, BC V3S 4S4
bc.communitylendingcentre.com/
In The News
- Economy Snapshot by Rebecca Awram – March, 2021March 11, 2021 - 6:17 pm
RATES This week I had a realtor ask me if I would work with her clients, they were eager to meet me, as long as I could match the “xxx%” that their Bank was offering them. Obviously if they were happy with their bank, the service, the strategy, the communication, the turnaround times and the […]
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Rebecca Awram, BA
Mortgage Advisor
DLC Canadian Mortgage Experts
17650 66A Ave,
Surrey, BC V6H 3V3
(604) 614-2382
rebeccaawram@gmail.com
http://www.communitylendingcentre.com
http://seniorslendingcentre.com
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