- The borrower required funds for debt consolidation, tax arrears, and working capital for a business venture.
- The borrower owns 11 residential rental properties, all carried 1st mortgages with financial institutions and a number had second mortgage charges.
- The borrower is self-employed, making it a challenge to prove income, and needed funds quickly for a business opportunity.
- We tailored a blanket 2nd mortgage against the 11 properties. We advanced $1 million on closing, allowing the borrower to pay off existing 2nd mortgage loans as well as personal debt (which improves their credit score and will help them to refinance in the future).
- The blended interest rate was under 6.00% making this 2nd mortgage solution more affordable than replacing the existing mortgage debt with a new private 1st mortgage.
- The mortgage was registered on title for $1,760,000, allowing the borrower to draw additional funds for their business as necessary.
Loan Amount: $1,760,000
Term: 12 months
Location:Toronto, Barrie, Orillia, ON