Looking for your a second mortgage or do you need alternative mortgage financing on your home? Do you live in the Nanaimo, Parksville, Nanoose, Ladysmith, Duncan or Courtenay areas of Vancouver Island? We can help.
A second mortgage typically refers to a secured loan (or mortgage) that is in second place to another loan against the same property.
In real estate, a property can have multiple loans or liens against it. The loan which is registered with the province first is called the first mortgage or first charge against the property. The lien registered second is called the second mortgage. A property can have a third or even fourth mortgage, but those are much more rare.
Second mortgages are called subordinate because, if the loan goes into default, the first mortgage gets paid off first before the second mortgage. Thus, second mortgages are riskier for lenders and generally come with a higher interest rate than first mortgages.
In most cases, a second mortgage takes the form of a home equity loan and the two are synonymous, from a financial standpoint. The difference in terminology is that a mortgage traditionally refers to the legal lien instrument, rather than the debt itself.
Why Get a Second Mortgage At All? What are the benefits?
- Refinancing to consolidate high interest debts
- Pay for unexpected expenses
- Renovate your home
- Repay and eliminate judgments or unsettled collections
- Opportunity for you to invest in stocks mutual funds or business investments
At Sand Dollar Mortgage Corp. we can help you with your second mortgage and determine your best course of action. Give us a call, you will not be disappointed.