These are a few client case examples. Every situation is unique and getting a Second Mortgage is not limited to these examples. Each situation is different and they all have benefited from either a Second Mortgage or a Private First Mortgage. Your situation may be different or possibly similar and the best place to start is to Apply Now for a free quote.
Case 1 – Expanding Business
A successful business was unable to keep up with demand. Majority of their customers were on Net 30 or Net 15 days. This tied up the businesses money until their customers made a payment. Once payment was received they were able to buy stock again and sell it. To keep up with the demand they got a Second Mortgage. This helped bridge a gap between buying new stock and shipping orders. Since getting the Second Mortgage they were able to expand the business further. They now maintain stock worth over $300,000 at all times due to the extra money they received.
Case 2 – Unexpected Overseas Emergency
An ill family member or loved one overseas is a situation that happens more often than we like to think. An emergency arouse which required Mr. Singh, a small hobby business owner close to retirement, to leave ASAP. Short on money he decided to sell his rental property. Initially, it had sold but the new purchaser was declined by his bank. The sale was cancelled. Unable to sell the property in a declining market he turned to a Second Mortgage. He was able to get the funds within 4 days! He did not have to sell his property below market value or wait 30-60 days after selling. For a refinance he would have to wait 10-15 days plus pay unnecessary penalties. In conclusion, he was able to get money right away with extra cash preventing serious financial damages.
Case 3 – Investment Property
Thanks to amazing equity in homes it has become easier to purchase an investment property. Closely watching as the house prices were rapidly increasing and unable to refinance his mortgage without paying a huge penalty. Mr. Williams, was left with a decision to either break his mortgage resulting in a $50,000+ penalty fee or buying the property at a higher price. In both cases he would lose. Using a Second Mortgage he was able to buy the property without breaking the first mortgage. Purchasing early he was able to save an extra $125,000 and did not require additional financing. He was able to put in a cash offer! This let him beat out competing offers. When his home came up for renewal he was able to refinance both mortgages into one. He saved over $175,000 by buying the property at the right time using a Second Mortgage.
Case 4 – Unable To Get Approved
After buying her first property Mrs. Lee was advised by her real estate agent to keep buying and nothing bad will happen. She decided to buy a pre-construction home. Two years later the Canadian government introduced new mortgage rules making it harder to qualify known as the “stress test”. Getting stuck in the middle of this transition she frantically tried to get a mortgage. The A lender declined immediately. The B lender waited and declined on closing date. The builder also added pressure by no longer allowing extensions. Finally using a Private First Mortgage the house closed within a week. Preventing a lawsuit which could have totaled over $215,000 in damages as house prices declined. She also saved her 20% deposit. Before the mortgage was up for renewal she sold her house and made a great profit.