{"id":4580,"date":"2017-04-16T21:16:11","date_gmt":"2017-04-17T02:16:11","guid":{"rendered":"https:\/\/financierevictoria.ctx-dev.fr\/?p=4580"},"modified":"2025-10-15T10:57:35","modified_gmt":"2025-10-15T14:57:35","slug":"taking-out-second-mortgage","status":"publish","type":"post","link":"https:\/\/financierevictoria.ctx-dev.fr\/en\/taking-out-second-mortgage\/","title":{"rendered":"Taking out a second mortgage? Skip the financial institutions!"},"content":{"rendered":"

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Why choose a private lender for your second mortgage?<\/strong><\/h1>\n

A second mortgage is a mortgage that is taken out on a property that is already mortgaged.<\/strong><\/span><\/h2>\n

You can take out a second mortgage with either a financial institution or a private mortgage financing company.<\/p>\n

Why go through a private mortgage financing company instead of a conventional financial institution?<\/strong><\/span><\/h2>\n

There are several advantages to choosing a private mortgage financing company over a financial institution.<\/span><\/p>\n

Your credit score doesn\u2019t matter<\/strong><\/span><\/h2>\n

First, the biggest advantage is that it doesn\u2019t matter what your credit rating is. If you go through a bank for this type of mortgage loan, you generally need a credit score of at least 650 points. If you go through a private mortgage financing company to secure a second mortgage, your credit score has no bearing.<\/span><\/p>\n

Did you use a bankruptcy trustee?<\/strong><\/span><\/h2>\n

Secondly, your financial institution will refuse your request for a second mortgage if you declared bankruptcy in the past 5 years or you were not discharged from a consumer proposal, as this means that there is still a blemish on your credit report.<\/em><\/p>\n

Private financing is much more flexible. If you still own your property, the fact that you have declared bankruptcy or have submitted a consumer proposal will not impact the decision of the private mortgage financing company.<\/p>\n

No income verification<\/strong><\/span><\/h2>\n

Another point worth mentioning is that, unlike financial institutions, private mortgage financing companies will not require an income verification. If you find yourself in a difficult situation (for example, you\u2019ve lost your job), not needing to have your income verified can only be seen as a win-win situation.<\/p>\n

Monthly payments: Just pay interest<\/strong><\/span><\/h2>\n

Private mortgage financing companies also allow you a degree of flexibility when it comes to your monthly loan payments. Depending on the options you choose, you can reduce your payments considerably.<\/p>\n

One option is to only pay back the interest over a given period. You won\u2019t touch your capital amount, but at least you can reduce your monthly disbursements.<\/p>\n

Example<\/u><\/strong>: One of our clients had a second mortgage for $25,000 with a financial institution. His monthly payments went up to $625.00. With Victoria Financial, his payments went down to $312.50, a reduction of 50%!<\/p><\/blockquote>\n

Why opt for a second mortgage?<\/strong><\/span><\/h2>\n

There are many reasons why you might choose to take out a second mortgage loan.<\/p>\n

You are in financial difficulty<\/strong><\/span><\/h2>\n

If you are experiencing financial difficulties, a second mortgage gives you the chance to get back on your feet. Because you don\u2019t have to provide a credit report or undergo an income verification, everyone benefits.<\/p>\n

You can use the amount borrowed to:<\/p>\n