Struggling to secure traditional financing for your B.C. home?
Struggling to secure traditional financing for your B.C. home?
A private mortgage or second mortgage might be the right solution.
Private mortgages and second mortgages used to have a bad rap thanks to shady lending practices, sky-high interest rates and a lack of regulation.
Things have changed.
At the Silverman Mortgage Group, we help B.C. home buyers access private funding from real estate investors. We work with a select group of private mortgage lenders to provide lending options for those who may be unable to access traditional lending products due to a poor credit history, irregular income or other factors.
Private mortgages can also be used to purchase or re-finance vacant land, commercial properties and farmland.
Unlock the equity in your home with a second mortgage.
Unlock the equity in your home with a second mortgage.
The mortgage you already have is known as the first mortgage. That means if you should default on your payments, the lender who financed your first mortgage gets first dibs on the equity that's built up in your home.
A second mortgage is exactly what it sounds like — another mortgage on your home. If you let your home go into foreclosure, the second mortgage lender can only recoup whatever money is left over after the first mortgage lender gets their share back. This is why interest rates on second mortgages are significantly higher than on first mortgages. Higher risk = higher interest rates.
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or to learn more about B.C. second mortgages and private mortgages, read our guide below.
Private & Second Mortgages Guide
Jordan de Brouwer
"I had a great experience with them. I was a first time home buyer and didn't know much about the mortgage application experience. They made the whole process very easy and stress free and explained each step in detail. I would recommend them to anyone looking for a mortgage, especially first time home buyers."
Leah Allen
"We purchased a second property and Silverman Mortgage Group made the process so easy and quick. I especially liked the personalized video presentation which made it possible for us to clearly understand the process. At a very busy time in our lives almost everything was completed in the comfort of our home."
Reid Arkinstall
"My wife and I had a great experience working with the Silverman Mortgage Group. It took us a while to find the right home but Zach and his team worked with us throughout the entire process, ensuring we always had the most up-to-date mortgage information. We look forward to working with SMG in the future."
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Resources to help you navigate mortgage financing and private lending.
What is a Second Mortgage?
A second mortgage can be an excellent tool that allows you to access some of your home equity without breaking your first mortgage. Learn more about how a second mortgage can be beneficial here.
Alternative Lending Provides You With Options
Alternative lending provides you with mortgage options that fall outside the normal banking channels. Learn more about the choices you have available to you.
Getting a Mortgage After Bankruptcy
If you’ve been through a bankruptcy or consumer proposal, there are several questions lenders will ask you regarding your financial situation. They'll want to know how long you’ve been discharged, if you’ve established new credit, how much money you have for a downpayment, and how much you make compared to how much you want to borrow.
Reposition Your Debts Through Mortgage Financing
If you’re a homeowner looking to optimize your finances, consider taking advantage of your home’s equity to reposition any existing debts you may have.
Credit and Mortgage Financing
Credit is the ability of a customer to obtain goods or services before payment, based on the trust that you will make payments in the future. When you borrow money to buy a property, you’ll be required to prove that you have a good history of managing your credit.
How to Handle Missed Payments
If you’ve missed a payment on your credit card or line of credit and you’re wondering how to handle things and if this will impact your creditworthiness down the road, here’s the plan for you to follow.
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When looking to qualify for a mortgage, typically, a lender will want to review four areas of your mortgage application: income, credit, downpayment/equity and the property itself. Assuming you have a great job, excellent credit, and sufficient money in the bank to qualify for a mortgage, if the property you’re looking to purchase isn’t in good condition, if you don't have a plan, you might get some pushback from the lender. The property matters to the lender because they hold it as collateral if you default on your mortgage. As such, you can expect that a lender will make every effort to ensure that any property they finance is in good repair. Because in the rare case that you happen to default on your mortgage, they want to know that if they have to repossess, they can sell the property quickly and recoup their money. So when assessing the property as part of any mortgage transaction, an appraisal is always required to establish value. If your mortgage requires default mortgage insurance through CMHC, Sagen (formerly Genworth), or Canada Guaranty, they’ll likely use an automated system to appraise the property where the assessment happens online. A physical appraisal is required for conventional mortgage applications, which means an appraiser will assess the property on-site. So why is this important to know? Well, because even if you have a great job, excellent credit, and money in the bank, you shouldn’t assume that you’ll be guaranteed mortgage financing. A preapproval can only take you so far. Once the mortgage process has started, the lender will always assess the property you’re looking to purchase. Understanding this ahead of time prevents misunderstandings and will bring clarity to the mortgage process. Practically applied, if you’re attempting to buy a property in a hot housing market and you go in with an offer without a condition of financing, once the appraisal is complete, if the lender isn’t satisfied with the state or value of the property, you could lose your deposit. Now, what happens if you’d like to purchase a property that isn’t in the best condition? Being proactive includes knowing that there is a purchase plus improvements program that can allow you to buy a property and include some of the cost of the renovations in the mortgage. It’s not as simple as just increasing the mortgage amount and then getting the work done, there’s a process to follow, but it’s very doable. So if you have any questions about financing your next property or potentially using a purchase plus improvements to buy a property that needs a little work, please connect anytime. It would be a pleasure to walk you through the process.
Chances are if the title of this article piqued your interest enough to get you here, your family is probably growing. Congratulations! If you’ve thought now is the time to find a new property to accommodate your growing family, but you’re unsure how your parental leave will impact your ability to get a mortgage, you’ve come to the right place! Here’s how it works. When you work with an independent mortgage professional, it won’t be a problem to qualify your income on a mortgage application while on parental leave, as long as you have documentation proving that you have guaranteed employment when you return to work. A word of caution, if you walk into your local bank to look for a mortgage and you disclose that you’re currently collecting parental leave, there’s a chance they’ll only allow you to use that income to qualify. This reduction in income isn’t ideal because at 55% of your previous income up to $595/week, you won’t be eligible to borrow as much, limiting your options. The advantage of working with an independent mortgage professional is choice. You have a choice between lenders and mortgage products, including lenders who use 100% of your return-to-work income. To qualify, you’ll need an employment letter from your current employer that states the following: Your employer’s name preferably on the company letterhead Your position Your initial start date to ensure you’ve passed any probationary period Your scheduled return to work date Your guaranteed salary For a lender to feel confident about your ability to cover your mortgage payments, they want to see that you have a position waiting for you once your parental leave is over. You might also be required to provide a history of your income for the past couple of years, but that is typical of mortgage financing. Whether you intend to return to work after your parental leave is over or not, once the mortgage is in place, what you decide to do is entirely up to you. Mortgage qualification requires only that you have a position waiting for you. If you have any questions about this or anything else mortgage-related, please connect anytime. It would be a pleasure to work with you.