Second Home Mortgage
Second home mortgage is commonly confused with second mortgage, but they are in fact different. The first product (let's call it SHM for short) refers to financing on property other than your principal residence. On the other hand, "second mortgage" refers to additional financing on the same property, like your principal residence.
It is possible to obtain SHM with similar terms and mortgage rates as the first home mortgage, whether your perfect place is a cottage or rental property. However, if you want another mortgage on the same property, rates are usually higher and the loan terms may vary significantly. That's the main difference.
The amount of either mortgage depends on the size of down payment, income, mortgage interest rates, as well as your other financial obligations, much like a regular home loan. Since lenders are more cautious under current market conditions, consulting with a mortgage professional is highly recommended. Apart from a credit check, which is always free for our clients, we suggest obtaining a mortgage pre-approval to get a clear sense of how much you can reasonably spend on second property.
Private Second Mortgages are now avalable
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