Canada’s banks have a long and arduous approval process for loans and mortgages. If you are a homeowner with less-than-perfect credit history, it’s likely that your application for a second mortgage will be rejected. But sometimes getting a second mortgage makes great economic sense. If you have a large amount of credit card debt, for example, paying it down with a loan that has a lower interest rate will save you money and lower your minimum payments. Or, if you want to sell your home, getting a second mortgage to access funds will help you renovate or make home repairs.

 

 

Fortunately, the financial landscape in Canada also includes private lenders. These entities pool money from individuals and groups like Mortgage Investment Corporations and work with licensed private mortgage brokers to provide short term loans to clients. These lenders tend to focus on the property clients bring to the table rather than any flaws in their credit history.

 

A private mortgage broker can work with you to guide you through the process. Private lenders tend to make decisions quickly; some even offer a 24-hour approval process! Most loans are ready to use within a couple of weeks.

 

Getting a second mortgage can make a great deal of sense for some clients. If you need funds, consider using the equity in your home as collateral and work with a mortgage professional to explore your options.