Tag: second home mortgage

Whether you plan to renovate and flip the house, rent it out, or sell it once the values increases, investing in a second property for investment purposes can be an excellent financial decision, but only if you’re prepared to take on the challenge of two independent mortgages. Here are some tips to help you prepare.

Review Your Credit Score

As with preparing for a first-time buyer mortgage, you should start with reviewing your credit report. If you have been diligent with your mortgage payments and other bills, you should be in a good position to apply for another loan. If there is anything out of order with your report, take the necessary steps to resolve the issues before proceeding.

Do Your Homework

In addition to researching current interest rates, house prices, and rent trends, make sure that figure out the estimated return of investment on the property. Before you dive head-first into purchasing a second property, you may also want to determine a mortgage lender and look into the benefits of partnering with an alternative mortgage lender versus a bank.

Evaluate Your Finances

One of the most important things to consider when applying for an investment property mortgage is whether or not you can afford the financial weight of an additional mortgage. You need to establish what you can afford as a down-payment, what it will look like to have multiple mortgage payments each month, and how much time and money you will need to invest in the upkeep and maintenance of the second property.

Work With an Experienced Mortgage Lender

Because managing two separate mortgages can be more complicated than only servicing one, it’s essential to work with experienced mortgage lenders who can help you navigate your unique situation. Alternative mortgage lenders are trustworthy, flexible, and equipped to help you with whatever you need.

Whether you’re looking to borrow or invest, Alta West Capital can help. We offer a number of lending solutions for first time buyers, individuals and families that are new to Canada, self-employed business owners, real estate investors and more. Alta West loans are fast and flexible to fit your needs. Visit our website to apply online or contact us directly. Call (403) 254-9075 or email info@awcapital.ca.

Congratulations! You’ve made the decision to purchase a second house. Whether you need an investment property mortgage or you plan to buy a vacation home, there are some mortgage mistakes you should do your best to avoid.

Not Getting Pre-Approved for a Second Home Mortgage

As with the mortgage for your first house, pre-approval is an important step in the home-buying process. Pre-approval will give you an idea of what kind of mortgage you can qualify for so that you don’t get your heart set on something that you can’t afford.

Not Researching Second Home Mortgages

As with any big decision, you should do your research and get properly educated. Know what your options are when it comes to a mortgage lender. You may also want to research the area where you plan to purchase your second home and consider things like property taxes and the real estate market.

Not Choosing the Right Second Home Mortgage

Avoid sticking with the same mortgage provider simply for the sake of convenience. If there’s something you didn’t like about your first experience, don’t be afraid to shop around. You may want to consider going through a private mortgage lender for your second home mortgage.

Not Being Able to Afford Two Mortgages

It can be tight to pay for two mortgages simultaneously. Before you make the decision to apply for a second home mortgage, review your budget and ensure you can afford the mortgage payments and taxes for both properties. You may want to review your budget with a mortgage lender as part of the application process.

Forgetting About Additional Costs

When you sit down to set a budget and determine what you can afford for a second mortgage, don’t forget about the added costs that are associated with owning an additional property. Consider the costs of insurance, furnishings and decor.

Avoid these five mistakes and you’ll be one step closer to relaxing on the beach by your new vacation house! Make your dreams a reality with advice and lending solutions from a private mortgage lender.

 

Whether you’re looking to borrow or invest, Alta West Capital can help. We offer a number of lending solutions for first time buyers, individuals and families that are new to Canada, self-employed business owners, real estate investors and more. Alta West loans are fast and flexible to fit your needs. Visit our website to apply online or contact us directly. Call (403) 254-9075 or email info@awcapital.ca.