When it comes to mortgages, your options are endless.
We have a range of solutions to meet your needs when it comes to second and private mortgages.
A second mortgage is the main alternative to refinancing your first mortgage, which enables you to increase the size of your loan by withdrawing more equity against your home.
Second mortgages are loans taken out against a home that has already been mortgaged. They can be an effective tool if you’re in need of financial assistance.
They can raise funds for whatever you need the money for, whether that’s paying off credit card debt or starting a small business.
A second mortgage can be used for:
- Buy a secondary property
- Cover your home renovation expenses
- Settling any outstanding bills
- Getting cash on hand
- Financial aid to cover temporary needs.
- Plus much more!
If you’re looking to get a mortgage, but the banks and institutional lenders aren’t willing to work with you, a private lender may be the answer.
Private mortgage lenders fund real estate transactions based on the equity of the home and its location. In many cases, they offer funding when major banks or institutional lenders are unwilling to do so. They can also be useful for investors who want a fast and tailored service.
Waiting for a long approval process isn’t always fun. If time isn’t on your side, or if you can’t qualify for a mortgage from a bank or institutional lender, then consider a private lender instead.
A private mortgage can be used for:
- Credit management or bankruptcy recovery
- Individuals who cannot provide proof of income
- Unique properties
- Home renovation and construction
- Income taxes, property taxes, or bills that are overdue
- Plus much more!
Our customers have trusted us for years, and now it’s your turn! Contact us today for more information or to apply for a mortgage.
We provide a range of mortgage products to fit your individual needs.
At Orchid Financing, we offer a range of solutions for all your home mortgage needs. Whether you're looking to buy a new home or refinance an existing one, we'll help you find the loan that works best for you.
The basics of second & private mortgages
How much can you borrow with second mortgage?
If you have built up some equity in your home, a second mortgage is a great way to access money fast.
The requirements for getting a second mortgage are simpler than ever. As a homeowner, the qualifications are based more on home equity than credit scores and income.
When applying for a second mortgage, the rates and conditions will vary according to the lender. For example, some lenders will not consider credit scores or income unless the applicant is seeking an institutional loan.
Orchid Financing has wide access to second mortgages through many our wide selection of lenders that do not require income or credit qualifications.
Second mortgage or refinance?
In some cases, it is cheaper to refinance an existing loan than take out a second mortgage due to lower interest rates.
However, there are some circumstances under which a second mortgage could be more advantageous for you. For example, your first mortgage may be locked in at a particular rate for a given period of time—a period during which you will have to pay a penalty if you close out the deal early. Secondly, your first mortgage may be locked in at a favorable rate.
Orchid Financing will guide you through your options and help you decide what’s right for you, based on your personal circumstances.
Do you need a private mortgage?
Private mortgages are popular financial solutions for homeowners who are unable to obtain bank mortgages. If you’re a homeowner in need of funds and unable to get a loan from a bank, you may be able to borrow money using a private mortgage.
How can a private mortgage work for you?
A private mortgage is a type of loan, which is typically issued by an investor or lending institution other than a bank. Private mortgages have flexible terms, which are not as stringent and drawn out as those of conventional banks. A private mortgage can be obtained by homeowners who meet certain criteria and have enough equity in their homes to secure the loan. The amount you can borrow with a private mortgage will be based on the equity in your home.
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FAQ
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What is a private mortgage in Canada?
A private mortgage in Canada is a loan provided by an individual or private lender instead of a traditional bank. It offers flexible approval criteria, making it a good option for borrowers who may not qualify with standard lenders.
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What is a second mortgage?
A second mortgage in Canada is an additional loan taken against your home equity while keeping your existing mortgage in place. It allows you to access funds without refinancing your first mortgage.
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When should I consider a private or second mortgage?
You may consider a private or second mortgage if you need fast financing, want to consolidate debt, access home equity, or have been declined by traditional lenders.
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How much can I borrow with a second mortgage?
With a second mortgage in Canada, the amount you can borrow depends on your available home equity, credit profile, and the lender’s requirements.
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Are interest rates higher for private and second mortgages?
Yes, private mortgage rates in Canada and second mortgage rates are typically higher than traditional mortgages due to increased risk, but they offer flexibility and faster approvals.
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Can I get approved with bad credit?
Yes, private and second mortgage lenders in Canada often work with borrowers who have bad credit, offering alternative solutions when banks cannot approve the application.
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How fast can I get approved?
Approval for private and second mortgages in Canada is usually faster than traditional financing, sometimes within a few days, depending on the lender and your situation.
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Why work with a mortgage broker for private lending?
A mortgage broker in Canada can connect you with trusted private lenders, negotiate better mortgage terms, and help you find the most suitable solution for your financial needs.