NOW STARTING AT 3.50%!!
A second mortgage is a lien on your property in 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 good, 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 first position. This is the optimum situation! In these situations, we can often place the 2nd mortgage for prime plus half a percent.
But, sometimes you’re 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.
It is 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!
Rebecca has lots of experience negotiating rates and terms for second mortgages in British Columbia. She’ll take the time and effort required to submit your file to multiple lenders and make sure you get the best rate on a 2nd mortgage. Her office is in Vancouver and she lives in Maple Ridge, so wherever you are in the lower mainland it is convenient for her to come see you for a private and confidential consultation.