NOW 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