Frequently Asked Questions

A second mortgage may also be known as a home equity loan. The mortgage you obtained when you purchased your home is your first mortgage and a subsequent mortgage, or home equity loan, would be a second mortgage.

Second or third mortgages can be used to consolidate outstanding debt from other sources, renovate your home, pay for your child’s education, start or finance a business or for any reason you see fit.

If you’re considering taking out an additional mortgage on your home, we encourage you to speak with our mortgage specialist who will discuss your unique financing needs. After researching and discussing your options, we will provide you with the best financing solution for you.

Instead of focusing solely on rates when you are shopping around for your mortgage renewal, the smarter thing to do is to review your mortgage needs and financial goals. After a period of time, when you have finally paid off part of your mortgage while building up your home equity, you should consider refinancing and gain access to the funds you need. It’s the perfect time to refinance in your mortgage renewal process since you are not breaking your mortgage term and thus won’t occur any penalty.

If you still owe a balance at the end of your mortgage term, you will need to renew your mortgage for another term. People may overlook the importance of starting research for their mortgage renewal early, but it is never a bad idea to have enough time to shop around for your next mortgage. Make sure you mark your current mortgage maturity date on your calendar and count back 120 days – this is usually the time your lender starts to send you special offers on renewals. Don’t rush to say yes to your lender since it may not be the best option you could get.

The amount of time it takes from getting approved to being financed will vary from case to case. However, the typical time frame you can expect is 3-4 weeks. Keep in mind that there are many factors that can cause your mortgage approval to be delayed. It is important to keep in touch with your lenders or mortgage agents regularly. Make sure you have any requested documents on time; this will help you have a smoother mortgage process.

MonsterMortgage.ca® has an exclusive partnership with the Corbo Kelos Group at RE/MAX Hallmark, the MonsterMortgage.ca® VIP Realtor Program. Here is how this program can help you:

• You will receive a 1% cash rebate of your mortgage amount with no maximum!
• The cash rebate is separate from any mortgage offer that you would receive from MonsterMortgage.ca®.
• The Corbo Kelos Group will deliver the money to you after closing.

Learn more or contact one of our agents for more detailed information.

Home Equity Line of Credit (HELOC) is a type of mortgage that is secured against your home. As you pay off your mortgage and build up equity in your home, a HELOC allows you to gain access to your home equity to use the funds you need. But keep in mind that you cannot exceed 65% of your home’s value. People usually use HELOC to:

• Consolidate high-interest debt (for example: pay off credit cards)
• Renovate their home
• Pay for higher education, expand your current business, etc…

Your credit history and credit scores are very important if you want to minimize your interest rates and borrowing costs. Here are some quick fixes that will improve your credit score:

• Purchase an investment property
• Do not carry balances on credit cards more than 65% of the credit card limit on an ongoing basis. High regular balance to limit ratio deem you a credit seeker and your score suffers because of this.
• Don’t miss your payments.  Late payments are recorded every time you surpass the grace period. Many credit card companies have Pre-Authorized Payment (PAP) directly from your bank account for the minimum payment. Take advantage of these tools if your schedule is too busy.
• Mobility Bills. Mobile companies like Bell are now reporting any disputes or late payments on credit bureaus. Although these mobile contracts are not necessarily credit cards, the repayment of these facilities now impacts credit repayment tools like the credit bureau. It is extremely important to not take a dispute lightly because they can harm your credit and have long-term implications.

When considering moving or renovating existing homes, people sometimes choose the former option. Sometimes it’s financially wiser to do the home renovations instead of moving because buying a new home will lead to several fees including land transfer fees, legal fees, realtor fees, updating new home costs, etc. A few key renovations can increase the value of your property. If you’re a homeowner we can help you get a home renovation loan based on your home’s equity.

There are numerous reasons why borrowers may choose to refinance the mortgage they already have. Some of these include:

• Consolidate high-interest debts into a much better financial plan with:
  • Lower rate
  • Lower monthly payment
  • Shortened mortgage terms
• Renovate your existing property
• Personal investments (i.e: expand your current business; pay for post-secondary education cost; purchase a new car…)
• Purchase an investment property

The cost of borrowing reflects the annualized interest rate and incorporates all costs associated with the mortgage such as an appraisal cost, mortgage insurance costs, applicable taxes and other required fees. That’s why the annual interest rate is usually higher than the interest rate.