Private second Mortgages, third Mortgages, and the CannectFlex difference
Traditional private second mortgages and third mortgages typically offer you access to money without refinancing your first mortgage. These mortgages are protected by your collateral, such as a home or a car. The lender can withhold this collateral up until you have paid your loan in full, including paying all interest and fees. A second mortgage or third mortgage is lent out based on the value of your home and the current amount you owe on your existing mortgage.
Private second and third mortgages offer varying penalties, depending on the lending provider and terms of the loan. Terms are typically quite inflexible, despite the loan being secured against your collateral.
CannectFlex loans differ by promoting long-term financial health through lower interest rates and flexible terms that allow you to make the most effective borrowing decisions. CannectFlex loans are designed to give you the flexibility to move the money you borrow to a lower interest rate mortgage, saving thousands of dollars in interest, while avoiding steep mortgage refinancing penalties.
How Henry and Suzanne saved $10,000 with CannectFlex
Henry and Suzanne needed $100,000 to cover the renovation costs of their home. They live in a $950,000 home and have a first mortgage with a major Canadian bank for $500,000.
Their bank told them there was a $35,000 penalty to break their mortgage in order to borrow an additional $100,000. With 2 years left on their mortgage, they looked to a private second mortgage as a solution.
They considered a $100,000 second mortgage at a 12% interest rate and a 1-year term. Although they would save a little by avoiding the mortgage penalty, they would still end up paying $30,000 in interest and annual renewal fees over the next 5 years while they worked to pay down their second mortgage.
Meanwhile, borrowing from Cannect at 8%—with the flexibility to refinance their first mortgage when their 2 year mortgage term was up—helped Henry and Suzanne save over $10,000 in fees and interest compared to a second mortgage.
Avoid overpaying on interest and mortgage penalties with Cannect
Not convinced yet? Shop around and see for yourself.
You could take our word for it or take a look around and compare. Private second and third mortgages are offered by many companies and major Canadian banks. See how they compare, then come back to apply for a CannectFlex loan.
Capital Direct
360 Lending
RBC home equity loan
Alpine Credit
Matrix Mortgage
Scotiabank home equity loan
Credit Butler
Alpine Credit
TD home equity loan
Nu-Borrow
BMO home equity loan
CIBC home equity loan
Gain long term financial flexibility with Cannect
Regardless of whether you have an existing mortgage (or two, or three) on your home—regardless of what your bank may have told you—Cannect will find the most effective way for you to borrow money.
As the Canadian real estate and the lending market becomes more complicated, Cannect simplifies how you can use the equity in your home to borrow money at the best possible rates.
Our goal is to provide you with the best short-term loan solution for long-term value, so you can work towards the lowest possible interest-rate mortgage, without added fees or penalties and costly long-term debt.
