Applying For Second Mortgage
With Bad Credit?
The popular misconception about the second mortgage in
Toronto is that, once you have a bad credit, lenders won't even
consider you for a second mortgage. This is, however, a wrong
notion. There a lot of special lenders out there and also special
conditions that would also make a lender offer you a second
mortgage. This is usually possible especially in cases where
you have sufficient equity in your existing mortgage. What this
implies is that, with your sufficient equity, the lender is assured
of getting his money back if you default in the payment.
Don't make the mistake of considering second mortgage as a
loan, it is quite different from your original mortgage that is why
it's usually tagged as a lien in your home. This means that if you
breach your lending agreement. The foreclosure right still
legally lies with the second mortgage lien holder even when you
have paid off your first mortgage.