If you didn't use a mortgage broker for your first mortgage, you know how stressful and time-consuming the process can be. Whether you have your eye on a summer cottage, a commercial building, or your first home, a mortgage broker can make securing your second mortgage simple and painless.

At Aero Mortgages, we strive to make your borrowing experience as fast and easy as possible. With that in mind, we've compiled a list of the most commonly asked questions when shopping for a second mortgage. If you have other questions, email us and we will get you answers as soon as possible. When you're ready to apply for your mortgage, just click Apply Online Now! to start the no obligation, online application process.

1. What is a second mortgage?
2. How do I qualify for a second mortgage?
3. How is the mortgage broker paid and what are the fees?
4. How long does it take to process the mortgage application?

1. What is a second mortgage?

A second mortgage is a financing arrangement secured by the property in addition to an existing mortgage. Typically, this secondary financing is arranged at a higher interest rate and for a shorter term than the first mortgage. It generally is secured by the difference between the price of the property and the first mortgage less the down payment.

2. How do I qualify for a second mortgage?

Like first mortgages, the major factors considered are the borrower's debt service ratios, credit history, and equity in the property. The allowable debt service ratios are higher than for a first mortgage.

Usually, the maximum Gross Debt Service Ratio (GDSR) percentage is 35% (compared to 32% for a first mortgage) while the maximum Total Debt Service Ratio (TDSR) is 45% (compared to 40% for first mortgages).

3. How is the mortgage broker paid and what are the fees?

   The borrower pays all fees for second mortgages. Generally, a 50% deposit is required with the application while the remaining 50% is payable after the advance of funds.
   
   

4. How long does it take to process the mortgage application?

   Residential mortgage approvals vary from one to three days, if all information is provided with the original application. Funding is usually available one week after approval.

   Commercial and private mortgage approvals take approximately one week from the time all pertinent information is received. Funding is usually available two weeks after approval.