SECOND MORTGAGE - COMMERCIAL
There is no limit to the number of mortgages that can be registered over the title to a security property. The loan registered first is termed the ‘first mortgage’, where as the loan or mortgage registered second is termed the ‘second mortgage’. The difference between a first mortgage and second mortgage becomes apparent should the loan go into default, whereby the first mortgagee will get paid out first. For this reason second mortgages do carry a higher risk for lenders, which translates to higher interest rates.
The good news, however, is that Private Funding House can assist in overcoming the hurdles that often accompany gaining a second mortgage. We deliver competitive rates, flexible terms and a faster turn around than our competitors, making this product the perfect alternative to those offered by banks, other so called second mortgage lenders and traditional lenders.
In most cases a second mortgage will require an agreement with the first mortgagee that regulates the priority amount or amount secured and payable under each loan. This agreement is called a ‘Deed of Priority’ or Priority Agreement. As Private Mortgage specialists, Private Funding House can facilitate the entire process from application to settlement.