A second mortgage is an additional loan taken out against a Chilliwack property that already has a first mortgage. It is secured by the remaining equity in your home. Chilliwack homeowners often choose this option when they need funds but want to preserve an excellent interest rate on their existing primary mortgage. Instead of overhauling your entire mortgage structure through a refinance, a second mortgage provides a targeted way to access the equity you've built in your Chilliwack home.
What costs are generally involved in obtaining a second mortgage?
Potential costs can include appraisal fees, legal fees, and lender or brokerage fees. We will ensure all costs are transparently outlined for you.
What are the repayment terms for a second mortgage like?
Repayment terms can vary, including options for principal and interest payments or sometimes interest-only payments. Terms are often shorter than first mortgages.
How are the funds from a second mortgage usually disbursed?
Funds from a second mortgage are typically provided as a one-time lump sum after the loan closes.
Will the interest rate on a second mortgage be higher than my first?
Generally, yes. Because a second mortgage sits in a riskier position for the lender than the first, the interest rate is typically higher.
How much can I typically borrow with a second mortgage?
The amount depends on your home's equity, your creditworthiness, and lender criteria, often allowing you to borrow up to a certain percentage of your Chilliwack home's value (Combined Loan-to-Value).