{"id":6745,"date":"2022-03-29T11:00:57","date_gmt":"2022-03-29T15:00:57","guid":{"rendered":"https:\/\/financierevictoria.ctx-dev.fr\/?p=6745"},"modified":"2022-03-29T11:00:59","modified_gmt":"2022-03-29T15:00:59","slug":"better-second-mortgage","status":"publish","type":"post","link":"https:\/\/financierevictoria.ctx-dev.fr\/en\/better-second-mortgage\/","title":{"rendered":"A better second mortgage, is it possible?"},"content":{"rendered":"\t\t
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Why repay a Fairstone or EasyFinancial loan using a loan from Victoria Financial?<\/h1>

Here\u2019s how to pay less by repaying a Fairstone or EasyFinancial second mortgage<\/h2>

When the conventional banking system refuses financing, alternative lenders like Fairstone and EasyFinancial can offer a practical solution to get back on your feet or finance a project. There are many reasons why major financial institutions will reject a loan request and these are sometimes unclear or even unfair. They include a recent credit report, a low credit ranking and unstable income. Since they use a different analysis grid, Fairstone and EasyFinancial offer a personal loan alternative for people who have been rejected by the big banks. However, these financing solutions cost more.<\/p>

Victoria Financial has a different and highly personalized business model. We\u2019re a private lender that can help not only those who\u2019ve been refused by their bank but also those who already have (or are getting) financing from Fairstone or EasyFinancial.<\/p>

A more advantageous second mortgage<\/h2>

Personal loans from Fairstone (up to $25,000) can have an interest rate of up to 39.99%. As for EasyFinancial, the unsecured loan limit is $20,000\u00a0and the interest rate listed on its website is 29.99%.<\/p>

The rate for loans secured by a mortgage (second mortgages) may be slightly better than for personal loans, but they remain high. Since these two companies can grant mortgages on properties where the debt ratio is close to 100%, their risk is great, and it\u2019s the borrower who pays the cost.<\/p>

And considering that both EasyFinancial and Fairstone require that monthly payments include repayment of a portion of the capital in addition to the monthly interest, the bill can end up being pretty hefty. The obligation to pay back capital throughout the financing period can quickly become constricting for someone starting-up a business or facing a lower revenue period.\u00a0<\/p>

\u201cSecond mortgages are more advantageous than unsecured loans\u201d<\/strong><\/p>

Victoria Financial on the other hand lets you pay back the capital at the end of the loan\u2019s term. The borrower only has to pay the interest during the loan period. Another big advantage is that the rates offered by Victoria Financial are substantially more advantageous than those of Fairstone and EasyFinancial.<\/p>

Here\u2019s a comparison of the monthly payments of Fairstone vs. Victoria Financial for the same loan:<\/p>

Loan amount<\/strong><\/p><\/td>

Fairstone*<\/strong><\/p><\/td>

Victoria Financial<\/strong><\/p><\/td><\/tr>

$10,000<\/p><\/td>

$213\/month<\/p><\/td>

$125\/month<\/p><\/td><\/tr>

$20,000 \u00a0<\/p><\/td>

$426\/month<\/p><\/td>

$250\/month<\/p><\/td><\/tr>

$30,000<\/p><\/td>

$640\/month<\/p><\/td>

$375\/month<\/p><\/td><\/tr><\/tbody><\/table>

*Calculations taken from the Fairstone website https:\/\/www.fairstone.ca\/en\/tools\/payment-calculator<\/u>; amortization of 120 months, good credit standing.<\/p>

How can Victoria Financial offer better payment terms and better rates? Loan approvals area based on the net value of your home and the upper limit is set at 75% of that value. EasyFinancial and Fairstone will sometimes finance up to 100%. It\u2019s this higher risk that leads to higher interest rates.\u00a0<\/p>

In short, it\u2019s easy to calculate. If your home\u2019s net value (market value minus mortgage balance) is over 25% of its market value, then a loan from Victoria Financial will undoubtedly be more advantageous to you than those offered by EasyFinancial and Fairstone. <\/strong><\/p>

Example of a calculation of a property\u2019s net value<\/u><\/p>

Market value: $400,000\u00a0<\/p>

Current mortgage loan: $250,000\u00a0<\/p>

Net value: $150,000\u00a0<\/strong><\/p>

Current debt ratio: 62.5% <\/strong>($250,000\u00a0<\/em>\u00f7 $400,000 = 0.625)<\/em><\/p><\/td><\/tr><\/tbody><\/table>

You can use Victoria Financial\u2019s free <\/strong>mortgage calculator<\/strong><\/a> to figure out how much financing you could get.<\/strong><\/em><\/p>

And if you already have a loan from these lenders, you could save thousands of dollars by repaying the remaining balance using financing from Victoria Financial.<\/p>

What\u2019s more, the eligibility criteria used by Victoria Financial are different from those of its competitors, who give more weight to your credit record and proof of income, like conventional banks do.\u00a0<\/p>

At Victoria Financial, personalized service lets us concentrate on the criteria that truly matter:\u00a0<\/p>