Where do you find a Vancouver Mortgage Broker for second mortgages?
When a home owner is looking for a Vancouver Mortgage Broker for a second mortgage, chances are that he will search the internet to locate a Mortgage Broker nearby. In Vancouver, BC a search will turn up a few Mortgage Brokers who have the contacts and experience to arrange for the money required by the home owner.
What are second mortgages?
Second mortgages are loan contracts secured on real properties which already have prior first mortgage charges on them. Most second mortgages are private mortgage loans provided by private mortgage lenders. These private mortgage loans fill the gaps that some financial institution such as banks and credit unions are unable or unwilling to fulfill.
Private Mortgage Lenders
Second mortgages are secured high yield investments private investors understand, and at the same time have some control on the investments. A private mortgage is a relatively safe investment. Most private lenders capped their investment risks to not more than 85% of the real estates provided as securities. The interest rates payable on 2nd mortgage loan contracts are from 9% to 18% per annum.
Some common features of a 2nd mortgage are:
1). Financing up to 85% of house value.
2). Interest rates from 9% to 18%.
3). Term – generally from 1 to 3 years.
4). Payments – mostly interest payment only.
5). Lender/broker fees – varies from 4% to 8%
6). Approval time – may take 1 day to 5 days.
7). Loan funding – can be done in less then 10 days.
If you like to find out more information about Vancouver second mortgage, kindly contact James Wong at 604-721-4817
CMHC Mortgage is a high ratio mortgage when the down payment provided by a home buyer is less than 20% of the purchase price of a home. In Canada CMHC, Genworth Financial and AIG are 3 insurers that provide high ratio mortgage insurance to home buyers who are buying their homes with less than 20% down payment.
Home buyers can buy with as little as 5% down payment if they are qualified for high ratio mortgages.
If you are a first time home buyer, check out if you are qualified to withdraw your RRSP savings as down payment. You should also find out if you are exempted from paying the British Columbia “property transfer tax”.
The CMHC mortgage insurance premium charged is dependent how much down payment is provided by you. The CMHC insurance premium may range from 1.00% to 2.75% of your mortgage amount.
Buying with 5% down payment
The less down payment you provide, the more fee you need to pay. This insurance fee can be paid up front or added to your home mortgage. If you plan to buy a home with 5% down payment and get a high ratio mortgage, check with your bank or your local mortgage broker whether you can be approved for CMHC mortgage financing.
The 5% down payment can come from different sources such as lender’s cash back incentives, lines of credit/credit cards, arm’s length personal loans or gifted down payment. For more information on applying for a mortgage, click on this link to my website: Vancouver Home Mortgage.