Mortgage Brokers Second Mortgage in Toronto - Why And How | Page 8

WHY AND HOW YOU SHOULD APPLY
FOR A SECOND MORTGAGE
• How you should apply:
1.
2.
3.
Talk to a bank or mortgage broker
• This is where trust and transparency, as well as good experiences
with your broker, come in handy because you’ll be using the same
broker or bank as you did with your first mortgage to figure out how
much money you have for the second mortgage.
Understand the risks
• Lenders will look at several factors when thinking about approving
you for a loan, including your equity, income, and credit score. High
values for each of these decrease the risk for a potential lender and
increase the chances of your approval. Lenders for second
mortgages often try to minimize the risk to themselves, so they don’t
lose money, so by being a low-risk client, you can get a second
mortgage much faster.
Plan ahead
• Take care to look at the agreement and make sure you completely
understand what you as a buyer are getting into. Paying two
mortgages at the same time is a lot to juggle, so make sure you
have a steady source of income and some funds to spare in case
of an emergency. Second mortgages are often paid off quicker
than a first mortgage, so be prepared for all outcomes.