A good homeowner loan is similar to a bank loan. It is totally open ( no penalties for paying extra on it or paying it off early). Be careful! There are homeowner loans out there that have very high penalties for paying it out early!

A homeowner loan is paid back over a much longer period than a bank loan (typically a bank loan is to be repaid in 3-4 years, and the payment is extremely high and a lot of people can't qualify for it because of the high payment). With a homeowner loan, the payment is much lower because it can be repaid over a much longer time period, making it much easier to qualify for (typically 10 years). A good homeowner loan is about the same interest rate as a traditional bank loan (typically 8-10% interest rate) ** remember, this is not a mortgage at 2 or 3%!** Be careful! There are many homeowner loans out there that are an extremely high interest rate! ( Fairstone starts at 19%!, Easyfinancial about 29%!) A good homeowner loan does not have all the fees associated with a second mortgage.

 

What fees are on a second mortgage?

1. Lender fee:                         typically 2000.00 ( instant pure profit for the lender)

2.Brokerage fee:                   typically 2000.00

3.Your legal fees:                  typically 1000.00

4 The Lender's legal fees :   typically 1200.00

5. Appraisal:                           typically 400.00

Total upfront 2nd. mortgage fees: typically $ 6500-6600  MINIMUM !!

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A good homeowner loan does NOT have these fees! ( they will have a smaller lender's fee to cover costs, NOT to make pure profit upfront!)

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A good homeowner loan does not put a second mortgage on your house. A good homeowner loan will put a Notice of Security on your house, which simply is that should you sell your house, the lawyer is instructed that the loan must be paid off from the proceeds. ( you are no longer a homeowner then and do not qualify to keep the loan) The cost to do this is typically paid by the lender out of the lender fee.

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A good homeowner loan does not need an appraisal. The lender will pay for a brokerage report to establish your homes value. (paid for out of the lender's fee).

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A good homeowner loan will NEVER ask for money upfront! ( they will simply add the lenders fee to the amount of the loan)

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Most homeowner loans have a maximum lending amount of $20000.00. If you need more than that, you will need to consider either a second mortgage, or re-writing your first mortgage.

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Ontario Home Financing constantly has lenders contacting us wanting us to promote their loans. Most of these papers go in the garbage after about 5-10 seconds of review because either the interest rate is too high, or there are penalties for early payout. 

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Below, is a homeowner loan that we believe to be the best.

It is the ONLY homeowner loan that can be paid back over a period of 10 Years, has NO early payout penalty, and is UNDER 9% interest that is available in the Country!

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