Direct Private Mortgage Lenders.
Equity Based Third Mortgage Lenders.
what is a third Mortgage?
Third Mortgage Rates & Approvals
Simply put a third mortgage is a mortgage that is registered behind an existing first and second mortgage. There are many reasons why a homeowner or real estate investor may require access to the equity in their real estate: consolidating multiple higher interest rate debts into one streamlined payment, property renovations, accessing funds for business operating capital or for other emergency expenses. Third mortgages typically come into play when it makes sense from a cost and practicality standpoint to leave an existing first and second mortgage in priority. However, it’s important to note that third mortgage financing is an incredibly niche product provided by very few mortgage lenders. DV Capital provides a fast and flexible third mortgage approval process and facilitates industry low third mortgage rates across Ontario, British Columbia and Nova Scotia.
How does a third mortgage work?
toronto third mortgage lender.
As previously mentioned, obtaining a third mortgage approval is far from a simple process given the fact that there are very few third mortgage brokers and third mortgage lenders. This is mainly a result of the risk that third mortgage lenders assume given their priority on title of the real estate security. Similar to private second mortgages, private third mortgages are typically short term loan facilities provided on a 12 month term basis with the potential of a renewal or extension at the lenders discretion. In most cases a third mortgage payment is interest-only which provides a lower mortgage payment compared to an amortized mortgage which consists of a principle component. A third mortgage borrower might benefit from a smaller interest-only third mortgage payment considering the marginal amount of principal pay down over a 1-year term if the mortgage was to be amortized. A third mortgage might be an option to consider when the existing first and second mortgages are held with institutional lenders, for example a mortgage registered in first position and a home equity line of credit registered in 2nd position. Also, depending on the size of a potential prepayment penalty, the cost might be too high to justify discharging the mortgage. Although a third mortgage is priced with a risk-adjusted premium, it may provide a cost friendlier blended interest rate and or a simpler way to access equity for real estate owners in Ontario & British Columbia.
Private Third Mortgage lenders.
What is a third Mortgage?
DV Capital have developed a strategic network of reliable private mortgage lenders including Mortgage Investment Entities such as Mortgage Investment Corporations (MIC) and individual private mortgage investors that enable us to private some of the most competitively priced and structured third mortgages across Ontario, British Columbia and Nova Scotia. We provide complimentary upfront quotations and have the ability to promptly secure approval terms and fund third mortgages in order to meet our clients third mortgage funding requirements. DV Capital provides complimentary upfront third mortgage quotes and works relentlessly to help their clients obtain third mortgage approvals. You may contact us 7 days a week with your third mortgage inquiries and look forward to immediate response time.
How to Apply for a third Mortgage?
Third Mortgage Brokers in Canada.
At times, existing mortgage lenders are not willing to advance their clients additional funds. It’s nothing personal, institutional and private mortgage lenders must work within their prescribed underwriting policies. As previously mentioned, when a real estate owner has an institutional 1st mortgage along with a home equity line of credit registered in second position, said products are usually positioned at interest rates lower than third mortgage pricing. In addition, breaking the first and/or second mortgage might not only trigger sizeable prepayment penalties but be impractical, depending on the clients situation, if breaking institutional mortgages and/or lines of credit can only be replaced with a non-bank, higher-rate, shorter-term first mortgage. This opens the discussion on why completing a mortgage assessment with DV Capital is incredibly important, especially when considering a short-term mortgage product such as a private second mortgage or third mortgage. It might be more efficient and cost friendlier to obtain a third mortgage. Due to the limited amount of third mortgage capital in the private mortgage market and limitations surrounding property types, locations and loan to values, consider speaking with an experienced provider of third mortgages.
What is a Third Mortgage Broker?
We specialize in third mortgages.
If you are a real estate owner in Ontario, British Columbia or Nova Scotia, you first want to ensure that you are working with an individual that is licensed by their respective Provincial regulator and has their license parked with a mortgage company that is licensed in your jurisdiction. In Ontario, it is important to note that the mortgage agent or mortgage broker that you are speaking with is specifically able to deal and trade in private mortgages. A third mortgage broker is essentially a licensed mortgage professional that can real estate owners access to third mortgage lenders for their intended purposes. DV Capital will provide you with a complimentary review and assessment of your existing mortgage set-up and help you to determine if a third mortgage will assist you with your financing requirements.
Third Mortgage Solutions.
Private Lending Options.
- Owner-Occupied or Rental Properties.
- Residential or Commercial Real Estate.
- Low or Unverifiable Income.
- Low Credit Score or No Established Credit.
- Self-Employed or Sole Proprietors.
- Behind on Income Tax Filing.
- Existing Mortgage or Property Tax Arrears.
- Outstanding Personal Income Tax or HST Balance.
- Active or Discharged Bankruptcy or Consumer Proposal.
- Unable to Pass the Stress-Test.
- Property in Poor Condition or State of Repair.
- Property is Located in a Rural or Remote Location.
- No Minimum Credit Score
- Equity-Based Second Mortgages.
- Third Mortgages in Ontario & British Columbia.
Third Mortgage Purposes.
Use your equity how you'd like.
- Consolidate High-Interest Debt Into One Payment.
- Renovate or Finish a Basement for Rental Income.
- Pay for Tuition and Schooling Expenses.
- Replace An Existing Second or Third Mortgage.
- Stop a Power of Sale or Foreclosure.
- Discharge Bankruptcy or Consumer Proposal.
- Business Operating Capital.
- Stop Property Tax, Condo or Strata Arrears.
- Pay Personal, Corporate, HST, Debts and CRA Tax Liens.
- Home Renovation Projects and Construction Loans.
Hear it from our Clients.
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