The second mortgage lenders are sparse and few in number. This is a very fragmented market that banks prefer to avoid.
One of the largest second mortgage lenders in Canada is Home Trust, which is a financial company, not a bank. Otherwise, second mortgages are usually provided by private lenders that are scattered across different cities.
The best way to find a second mortgage is not by visiting a bank, but rather going to a mortgage broker and reap the benefits.
Second Mortgages and Private Loans
Did you know that second mortgages make up the majority of loans in the private mortgage market?
Some of the reasons this happens are that second mortgages are not as big in size as first mortgages, and these second mortgages generally exist for debt consolidation purposes (they are used to lower the number of mortgages). interests). This can be confusing at first, as second mortgages generally have higher rates than first mortgages, but you have to take into consideration the fact that when used for debt consolidation purposes, the second mortgages Mortgages always come with lower rates than credit card interest rates, for example.
Private lenders have fewer approval requirements than traditional lenders (like banks, for example). They are much more interested in your loan-to-value ratio than they are in your credit rating or income.
The fact that private lenders of second mortgages are sparse across Canada is not of great benefit since their goal is to be close to the properties with which they do business.
How to find a second mortgage lender
If you’re looking for a second-rate mortgage lender, you can try your luck with Google, search online or flip through the lender’s directories; however, it is much easier to find the loan you need by visiting a mortgage broker. Mortgage brokers already have pre-established relationships with second-tier mortgage lenders, and they can identify which one would be most appropriate for your situation. Mortgage brokers know the market very well and can offer you products and promotions that you did not know existed.
We can help you find a loan at an excellent rate. No matter which city you live in: Toronto, Montreal, Vancouver, Calgary or a smaller city, we have access to an extensive network of second-tier mortgage lenders that can finance your loan. Talk to one of our specialists to find out more.