What is a Good Interest Rate on a Second Mortgage in BC? 3.45%!!

Rebecca Awram - Vancouver Mortgage Broker

NOW STARTING AT 3.45%!!

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.

second mortgageAs 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.

Bad Credit Mortgages in British Columbia

Rebecca Awram - Vancouver Mortgage Broker

Good people can have bad credit!  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 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.

mortgage application

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 placement of mortgages for people with damaged credit makes a big different on 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. Her office is in Vancouver BC and she lives in Maple Ridge, so most areas of the lower mainland are convenient for her to come meet you and discuss your options, privately and confidentially.

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