A second mortgage is a secured loan that lets you borrow against the value of your home. It’s also known as a ‘secured line of credit’ by the banks. To get one here in Ontario, you need to work with your bank or a certified mortgage broker — it’s the law.
We are not a mortgage broker. We don’t work with borrowers like yourself to find a bank or lender that will give you a secured loan or line of credit.
We are a private lender that specializes in second mortgages. Brokers contact us when looking for money to finance a second mortgage for borrowers like you.
As a lender with integrity, we think it’s important to be candid — to be open and honest about some of the challenges involved with getting a second mortgage and about our industry.
Some brokers and lenders take advantage of borrowers by crafting deals that might not be in your best interests. The key is to find a smart and trustworthy broker.
Some overcharge, some hide fees but the most common thing we see shady brokers do is find you a deal no matter what — even if it’s not affordable in the long run. Be aware of this. Good brokers are going to give it to you straight, even if it’s bad news.
Call friends, research online and ask the right questions. Meet with a few brokers to compare. Don’t feel pressured. A good broker will walk you through everything and will welcome any request for referrals.
If a broker tries to collect on any payments prior to securing a deal, walk away. Reputable brokers don’t work that way.