GETTING A SECOND MORTGAGE?
We’ve helped thousands of homeowners and investors qualify for mortgages for Second Position HELOCs/mortgages, investment properties, and second-homes – helping them meet their personal and financial goals.
Not only have we helped them get the type of second mortgage they want or need—but also kept them from making the most common mistakes that are consistently made by first-time investors.
Getting a Second Mortgage, when you already own a home and want to buy a second property, is very different than a Second Position Mortgage.
This section is about getting Mortgage for a Second Property.
If this is what you are looking for, you’ve certainly come to the right place!
Watch this video about our Second Home Mortgage and Rental Property services to find out what you need to know
The Mortgage Specialist is your source for All types of mortgage services information and everything you need-to-know about mortgage-related financing!
REMINDER
DON’T take out any kind of second home mortgage without speaking with The Mortgage Specialists here! What you don’t know can hurt you. Do things the right way…do it with The Mortgage Specialist.
Why you would consider a mortgage for a Second-Home:
- Do you have a child or family member who is away from home? Perhaps they are studying, or they have relocated for employment?
- Or have you been considering a second-home mortgage to purchase investment property, to rent out, for cash flow, as part of your financial future?
- With interest rates as low as they have been, for as long as they have been, many have been mulling over the idea of buying a second property.
- In many cases it is cheaper to buy that second home for a family member than to pay rent. And let’s not forget, when we rent – we are paying into someone else’s pockets vs building our equity.
Tips for Purchasing an Investment Property:
- Use the Equity that has been built up in your property towards the down payment of an Investment Property
- You can finance up to 80% of the value of the investment property, and the rental income can pay for the mortgage and all the expenses.
- The Power of owning even just ONE investment property can help you change your life – pay your mortgage off in half the time, save for your children’s education or retire 5 years sooner
A couple of Costs to Consider along the way as well
1. Property Transfer Tax
2. Assessment value vs Market Value of a property you are interested in
Many Canadians are now seriously considering taking the plunge into buying a second property, be it for a family member, or an investment property to rent out.
A mortgage for a Second home should not be confused with getting a remortgage or a second position charge mortgage.
Here in Canada, you have the ability to declare one home as your primary residence. If you already own a home, and you buy another home, then it is viewed by the lenders that you are purchasing a second home, should you wish to apply for a mortgage.
Even if you wish to make the second property your primary residence, and rent out the current place that you live in, or rent out the new home, your application will be treated as a second property mortgage because you already have one mortgage.
These details can sometimes be confusing.
We are here to help and you can depend on us to help provide you with clarity through the murky waters of navigating through the different terminology and processes. We will be by your side to help you navigate through this and reach your personal and financial goals.
Typically, you will require a larger down payment for your second property, and the interest rate might be slightly higher than your first mortgage.
There are exceptions and we will have to review your case individually to determine if you qualify for an exception. In most cases, if you do not require the use of any rental income being generated from your second property to use for qualification, or you are going to be moving in to the second property. You might be eligible, so long as you qualify, to put less a down payment (under 20%) and a lower interest rate.
Call us today at 778-233-2377 to help you assess the whether buying a second property is right for you.
We will not only help you reach your second-home goals through mortgage strategies—but we’ll do it while protecting your credit score, your first home—and your family’s security.
