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Due to the risk involved, these quick funds come at a relatively high-interest rate. Although they are not as expensive as unsecured loans, they can still take out a large piece of your monthly paycheque. Irrespective of the risk you take when you apply for these quick loans, they can still help you out of a jam. Read on to learn more.
Most second mortgage lenders in BC require you to have more than 20 percent equity on your house to qualify for a BC second mortgage. Most lenders will only offer a loan of up to 80 percent of the current value of your home. This means that, when the first mortgage balance is added to the second mortgage, the sum should not exceed 80 percent of the value of your home.
Besides equity, safe instant loan lenders also consider your income. This is your ability to make a direct deposit or advance payment to avoid defaulting on the loan. Your source of income has to be dependable – people with part-time jobs and entrepreneurs who are not yet established miss out on these emergency loans.
Most lenders have set minimum credit score requirements at 620 and will only offer safe quick approvals or instant decisions on the basis of your credit score. If a credit check shows you have a bad credit history, your online applications might be declined or you might get an Alberta second mortgage at relatively higher APR.
Even with all these requirements, you can still get a loan to sort out your financial issues or take care of unforeseen circumstances even when you have bad credit.
Second mortgage lenders in BC charge high rates, although not as high as credit cards. The first mortgage lender is given priority in case you default on your loan and the home goes into foreclosure. Due to the risk that the lender is taking, you will pay a higher interest rate. However, you can still find lenders with great second mortgage rates in BC. With better rates, you may not have to struggle to make payments like borrowing from your RRSP account or making any other bad financial decisions.
There are so many second mortgage lenders in BC that you might be confused when trying to pick the best. When you are shopping for a fast loan against your home, start by considering whether you need the loan in a lump sum or as a home equity line of credit (HELOC).
Either way, you need to check whether the money lenders are licensed. This is especially important when you choose online lenders instead of traditional lenders. When applying, ensure that the loan agreement is written in a simple language that you understand. If not, consult a third party (such as a lawyer) to help explain the unclear parts to you.
Do you need to find the best second mortgage rates in BC? The only way to do that is to compare hundreds of second mortgage lenders in BC, a task that can take a lot of time. Loans Geeks has made the task easier for you by comparing these lenders based on their rates, their services, and their reputation. All you need to do is enter your details and the type of financing you need on Loans Geeks and you will be all sorted out.
While you can get a second mortgage in BC on short notice, you need to ensure that you get the best second mortgage rates in BC. This can only happen if you compare second mortgage lenders in BC on Loans Geeks and check their online reputation on sites such as the Better Business Bureau.
Lenders consider the equity you own on your home, your income or ability to pay the loan, and your credit history. You qualify for up to 80 percent of the value of your home.
A second mortgage in BC helps you take care of your long term or short term loan needs. It is a loan taken against the value of your home while you are still paying the first mortgage.
The amount you can borrow is dependent on the value of your home and the balance on your first mortgage. The balance on your primary mortgage and your second mortgage should only be up to 80 percent the value of your home.
It takes between a day and a week depending on the lender and their funding process.
Since the risk of a second mortgage is higher than the first one, it tends to be about 2% to 5% more than the first mortgage products. The interest rates will also vary depending on factors such as adjustable or fixed rates, total loan value, type of property, credit score and other important factors.
If you are making application for the second mortgage loan against a home equity, you need to disclose if you are currently occupying the home or not. While you do not have to occupy the home to be eligible for a second mortgage, you might have to pay higher interest rate if it is an investment property. If you are renting out the home, they will treat it as an investment property.
The second mortgage will not affect the terms of the first mortgage. In case you decide to refinance your first mortgage at a later stage, you will first have to pay off your second mortgage to be eligible for refinancing.
Most of the lenders charge three-month interest penalty for early second mortgage repayment, but the terms differ from lender to lender. It is best to speak to your lender well in advance to ensure that you know about the penalties in case you are looking to close the second mortgage before it is due.