What is a Mortgage?

To put it in simple terms, a mortgage is a type of loan used to buy a home or other type of property. If the loan is not repaid on time, a mortgage allows the lender to take possession of the property. Usually, the mortgage is paid off over many years and equity (the value of the property) builds up along the way.

What’s the Difference Between a First and Second Mortgage?

There can be confusion around what the difference is between a first and second mortgage, and many homeowners in Brampton are not aware that they can take a second loan on their homes. First and second mortgages refer to the position of the mortgage on a specific property. The first mortgage is usually taken while buying the home. The second mortgage is a second loan against the same property while the first mortgage is still not paid off. In fact, it is possible to have more than one “first” and “second” mortgage with 2 or more properties.

Example of 1st and 2nd Mortgage

Here is an example of having multiple mortgages: John has a home with a first mortgage but is interested in purchasing an investment property and needs the finds for a down payment. Finding it too expensive to refinance, John decides to get another mortgage on his property. This would be classified as a second mortgage. Once John has the necessary funds, he is able to purchase his investment property with his first mortgage. Note that this is not considered a third mortgage; this new mortgage John has acquired is also considered a first mortgage.

Let Us Help You with Your 1st and 2nd Mortgage in Brampton

We know that when it comes to acquiring a first or second mortgage in Brampton, you need the right professionals who can help. Canadian Mortgage Services has experience assisting clients in Brampton, and we can guide you to make the right choices for your current situation that will help you achieve your short and long-term goals.

Canadian Mortgage Services has been providing mortgage services in Brampton since 1988. We will help you find the right mortgage solution for your needs, and we will even come to you! Contact us today for your FREE consultation!