A first mortgage is a registered lien against your property and ranks as the first choice among borrowers because it usually provides the most attractive lending rate.
First Mortgages generally have terms of up to 5 years depending on one’s income, credit situation and preference.
You can use your first mortgages for various reasons:
- To buy a principal residence, second property or investment property.
- To pay off an existing first and/or first and second mortgages perhaps to lower their interest rate or increase the loan to take-out equity for any reason.
- To pay off an existing first mortgage and take-out extra money for debt consolidation, home improvements or renovations, bring property taxes and mortgage arrears up to date, pay off creditors, family allowance responsibilities, etc.
SECOND & THIRD MORTGAGES
A second or third mortgage is a registered lien against your property that ranks subordinate or second to, or behind a first mortgage lien or line of credit.
You can use your 2nd or 3rd mortgage for various reasons:
- To pay off existing higher rate loans and credit cards.
- To borrow for home improvements or renovations.
- To Bring your property taxes up to date and avoid late interest, penalties and potential sale of your property
- To pay off income tax arrears, consumer proposals, judgments, family allowance responsibilities, etc.
- To pay out your spouse’s equity in the event of divorce.
- To bring your mortgage arrears up to date.
- To stop power of sale proceedings.
- To pay off creditors and put an end to annoying collection agency calls.