CURRENT MORTGAGE RATES Last updated:  April 28, 2008 Term Bank Rate Our Rate 6 month 6.20% 6.20% 1 year 6.95% 5.00% 2 years 7.00% 5.85% 3 years 7.00% 5.85% 4 years 6.85% 5.69% 5 years 6.99% 5.35% 7 years 7.40% 6.15% 10 years 7.75% 6.40% Variable Prime - 0.6% 4.15% Prime: 4.75% * rates subject to change without notice    .

Reasons for seeking a second mortgage are not so different from any other reason to access equity in your home.

The guidelines to arranging, and the rates and terms for a second mortgage however, are different from securing a first mortgage. Typically, second mortgages are much easier to obtain because the types of lenders that will provide funding for a second mortgage usually are “rate and fee” driven. They are referred to as “equity lenders”.

What does that mean?
Some second mortgage lenders will lend up to 100% of the value of your home. For example; if your home is worth $200,000 and you have an existing first mortgage at $130,000 - at 100% of the value ($200,000) – you can obtain a second mortgage totaling $70,000.

A typical second mortgage will have rates anywhere from 10% - 20%, along with fees. That stated, the fees involved are worked into the total amount of the loan. Fee’s generally are not payable “out-of-pocket” to client, but worked into the mortgage amount.

How much are the fee’s that the lenders charge?
That depends on the lender of choice, but usually we as brokers will shop around to find the best rate and fee for your best interest.

You may also do a 2nd mortgage that is only 90% of the value of your home which can be insured by CMHC or GENWORTH and the interest rates are much lower than the once previously mentioned (5% - 8%) but this would depend on your credit and if you are behind in any of your payments. It is best to try to bring your credit card payments up to date before applying for the mortgage. These insurers do not do default management.

Documentation required to secure a second mortgage, is much less intensive as securing a first mortgage. In many cases, a mortgage application and an appraisal from an “approved appraiser” is all that is required. In all cases, an appraisal is required to be performed on the subject property.

On most of the second mortgage insured by CMHC or GENWORTH will not require an appraisal. They do require that you have owned the home for at least one full year before they will do a 2nd mortgage behind your existing first mortgage.

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