Mortgage Brokers More About Second Mortgage | Page 5

SECOND MORTGAGE
REQUIREMENTS IN ONTARIO
• Equity–The highest amount the lender will give you is 75% of your current
home value. It means your first loan and second loan combine equals to
75%. Some private lenders do allow 80% to 90% of the loan depending on
the situation.
• Income – mostly every lender will look at your income. They want to
make sure that you are able to pay off the loan without any hassle.
Depending on your income, they might have better offer that you want to
consider. However, the rules for income are not strict and some lenders
might not pay attention to it.
• Credit score – if you have a bad credit score, the second mortgage may
not be easy to get. The better credit history, the better interest rate. Banks
and private lenders get assurance by looking at your credit score.
• Property Value – the value of your property decides your loan. The lender
wants to ensure that in case of foreclosure how much amount they can
get back.