Third mortgages in Canada
Whether you need $10,000 or $50,000 – Alpine Credits is the best alternative for third mortgages in Canada
Alpine Credits has been helping homeowners secure third mortgages to cover investment property purchases, medical expenses, and everything in between for more than 50 years. If you’ve been turned away for a loan in Canada, we can help you get the funds you need.
What is a third mortgage?
A third mortgage is a loan backed by your owned property, with which you can unlock the equity built in your house without selling it. With the third mortgage you will be making three payments monthly, one for the original loan, one for the second mortgage, and one for the third mortgage. The first and second mortgages will need to be paid before the third one as it is subordinate to the other two.
Please note that the balance remaining on your original home loan limits the amount you can borrow through a third mortgage. According to federal regulations, your first and second mortgage combined cannot exceed 80% of your home’s appraised value. A third mortgage will focus on your loan-to-value ratio. Third mortgages can sometimes be easier to obtain if you use the same lender as your second mortgage. You can borrow more money if your home is more valuable. The third mortgage can up to 85% of your home’s value.
You can use the money you receive from a third mortgage for many things, including:
- Tuition for yourself or your children
- Supplementary household income
- Planned and unexpected large expenses
Key benefits of mortgage refinancing from Alpine Credits
Qualifying for a third mortgage is easy. It’s often your simplest option for covering large expenses as a homeowner. Not all third mortgage lenders have a straightforward approval process. Unfortunately, traditional banks have stringent loan requirements. Typically, they will expect a stellar credit record and stable employment. This leaves many homeowners without the funds they need to invest, pay for a child’s education, or consolidate loans.
Alpine Credits has helped millions of homeowners find the right mortgage solution. Apply now and receive an application decision within 24 hours. Our application process is simple and we can have the funds deposited in your account within a week upon approval.
Financing you can depend on
All you need to qualify for a loan is to own your home or other real estate. At Alpine Credits, our primary concern is not your age, credit, or income history when approving you for a loan. Instead, we focus on the value you have in home equity or other real estates.
Third mortgage rates in Canada, explained
As with original and second mortgages, rates vary depending on personal factors such as the amount you are looking to borrow. Sometimes the interest rates are higher than the original two mortgages you had secured. This is because the lenders are taking a greater risk by issuing a third home loan. If you ever become insolvent, your original mortgage lender will always take precedence. Any other lender runs the risk of not getting repaid in full.
These rates are substantially lower than those associated with borrowing against your credit card or any other form of unsecured debt. When it comes to borrowing large amounts of money, they’re unbeatable.
Getting a third mortgage with bad credit
If you have bad credit, unfortunately, you have probably faced loan rejections before. Alpine Credit helps you secure a loan with bad credit as well. Traditional lenders like Canada’s Big Five Banks take a different approach. If you have bad credit yet somehow manage to avoid automatic denial, they will demand further documentation or even a cosigner. Wondering where you fall on the credit spectrum? Here’s a breakdown:
- 300 to 599: Poor. It’s unlikely you’ll qualify for any loan from a major financial institution.
- 600 to 649: Fair. You still likely won’t qualify for a traditional bank loan.
- 650 to 719: Good. Before COVID-19, you’d likely have qualified for a traditional bank loan in this range.
- 720 to 799: Very good. In this range, your options begin to open.
- 800 to 900: Excellent. You can qualify for most loans.
Third mortgage rates in Canada, explained
Canadians use third mortgages for a variety of reasons, including:
If you own a business or want to start a business, a third mortgage might be the best way for you to obtain the financing you need.
The primary downside to typical refinancing is the amount you pay to get the new loan. Refinancing will cost you money because what you’re doing here is taking out a new mortgage to pay off the old one. That also means you’ll have to pay most of the same closing costs you did when you took the first loan, including application fees, origination fees, and closing fees.
A third mortgage can help pay for your (or your child’s) tuition expenses.
Home renovations are an excellent way to increase the value of your property or upgrade parts of your home that need some attention.
Have you fallen behind on personal, corporate, or property taxes? These could be some reasons why the bank will not offer you additional financing. However, Alpine Credits can help. If you have equity in your home, we can lend you money.
Advantages of third mortgages
Getting a third mortgage through Alpine Credits is quick and painless, words Canadians don’t usually associate with navigating the financial services sector to borrow hundreds of thousands of dollars.