A second mortgage is an option for those people who already have a first mortgage and have paid on it over a period of ten years (or fewer) and during that time have built up what is called equity.

When the equity on your home builds up, you become eligible for the second mortgage option which essentially means that you would be borrowing against your home. The actual amount you are entitled to take depends on the difference between what your house gets when it is appraised and the amount that you owe on your first mortgage. Sounds a little bit confusing, but that is how it works.

Do I need a Specific Reason to Apply for a Second Mortgage?

Everyone’s reasons to apply for a second mortgage are different. For one person, it may have to do some home renovations but for someone else, it can be because they simply want to start up a small business. Point being, that everyone’s actual reasoning for applying for a second mortgage don’t have to be the same. What matters is that they have enough equity built up over time on their house, as well as the actual appraisal value.

Can I Even Qualify for a Second Mortgage?

Qualifying for a second mortgage is easy, just talk to your Halton Team Mortgage Advisor for more information. If you already have a mortgage with us and you have been making your payments on time regularly for some time now, qualifying for a second mortgage shouldn’t be an issue as long as you can prove that you are still employed and have the necessary income to meet all of your monthly payment obligations. It is difficult to assist you unless you actually speak to your Halton Mortgage Advisor because everyone’s circumstances will be different and as always, we like to do our best to help you with all of your mortgage needs. We understand that sometimes life can throw curve balls your way, so we always strive to give you the best service possible. We always go the extra mile to make sure that you are comfortable with any and all mortgage agreements. The only way to find out if you meet the criteria for a second mortgage is to apply for one.

When you apply for your second mortgage, your lender considers the following information;
– Your income (this is any and all $$ you earn regularly and can provide pay stubs for)
– Your credit score(this is the credit rating that you are given by the credit bureaus of Canada)
– Your Total Debt Service Ratio(TDS)- this is evaluated when deciding whether or not you will be able to meet the payment obligations of a second mortgage)
– Length of Employment( this is the duration of time that you have been employed by the same company. The longer you have been at the same place of employment, the better)

The Halton Team Mortgage considers the above information because these are the most important contributing factors that are relevant to your second mortgage application. This is the most relevant information. If you have started a new job but you are still currently employed by the company that we have on file, then be sure to give us your new employment information as well. It only provides more security, with respect to you actually be approved for your second mortgage. We will also need your Photo identification, your Social Insurance Number and your up to date banking statements. These are the part of the standard procedure of any application that gets filed with the Halton Team Mortgage. We just like to be sure that the information you give us verbally is accurate. Besides that, you shouldn’t be required to do anything else except to pay the fees that are required. The fees are somewhere between 2-5% of the principal loan amount. If you need more information on what exactly you are paying this fee for, then it is outlined in detail inside the agreement. You are required to sign that document upon approval for the second mortgage, just ask for your Halton Team Mortgage Advisor for more information.

If you have any questions at all, never hesitate to contact us because we always have your very best interest at heart and we will always be there for you when you need us to be!