​The location and neighbourhood should be pleasant and attractive. The neighbourhood should be safe, crime free and preferably family oriented. Whether you are looking for a real estate investment property in West Kelowna, or a townhouse in Surrey, the location within those cities definitely matter.

​The property should be easy to renovate, meaning that there is no need for many permits and applications required from the city authority. Depending on if you are buying a rental or investment property for renovation in Kelowna, Kamloops, Vancouver, Victoria, or Langley – be sure to understand the different requirements from the city authority to renovate as smoothly as possible. The least amount of resistance from any third party and streamlining the process is best. Find a house which has as little major renovation obstacles to overcome as possible. Try and avoid situations involving faulty issues with foundation and building structure.

​Ensure that the property has access to as many amenities as possible. These amenities would include shopping, transit, schools, and even health centres and hospitals. It is a benefit having many of these amenities as close to the residence as possible, whether you are looking to rent the space out or sell it for a profit.

Avoid properties which are very isolated. Perhaps the price point may be far less for properties further out of major towns and cities, but they are not always as desirable. This is for the obvious reason, that location is what sells and makes the property extremely desirable. The best location typically gets the best results, which should be a factor to consider when investing in property in BC.

​Incorporate good quality and noticeable craftsmanship in the renovation work to be done.  A visible appreciation and acknowledgement of the work completed should be achieved. Take pride in the renovation and ensure you have the work done right by a professional. Avoid cutting corners and try not to cheap out on certain aspects if you can avoid it.

​Seek out a location which has plenty of new construction and renovations on going. The construction activity and atmosphere will complement the property you are renovating. It will resonate an appealing image that you are beautifying the property to come.

​Renovating a property in BC is an exciting experience for many, but you want to make sure that you are familiar with the process. If you lack the experience but have the desire, you should educate yourself and seek out expert advice. You may consider connecting with several contractors and have them assist with the planning and give you independent quotes for the work to be done.
 
If you are looking to get started with renovating your property but are having challenges with the financing, and are located in Kelowna, Vancouver, Surrey, Langley, Victoria, or elsewhere in BC - get in touch with us today and we can walk you through the process of leveraging your home equity to finance your home renovation.
 
If you are looking to pursue an investment property for renovation to later rent out or sell for a profit, we may also have a private mortgage solution for you. Leave a comment below or get in touch with us today at 604.620.2697 to discuss your options.
 

If you are currently looking for mortgage financing and live in Vancouver or elsewhere in British Columbia, you will learn very quickly that are so many lenders and sources of mortgage funds out there. There are numerous mortgage options for any and all types of mortgage requests, whether you live in the Metro Vancouver area, on Vancouver Island, or in the Okanagan. Funds for mortgages are available from the major banks to individual private lenders. The competition for mortgage business is great, especially in today’s market, allowing customers to benefit from the many options and competition for their valued business. Because of this, a borrower should do their research before deciding on a mortgage lender to move forward with. Another option would be to take on the services of a mortgage broker, who will effectively maneuver you through the mortgage market maze. A mortgage broker will save you a lot of time and explain in detail the various mortgage products and options available depending on your situation. Brokers can “cut to the chase”, as they specialize in mortgages. After an initial consultation, they are able to pinpoint and narrow down the best finance options quickly and effectively for customers.
 
Here is a list of the various sources of mortgages available for residential or Commercial purposes that one may wish to consider:
 
1) Commercial Banks:   
The primary commercial banks in Canada are:

• Royal Bank of Canada
• Bank Of Montreal
  
• Bank of Nova Scotia
  
• Toronto Dominion Bank
  
• Canadian Imperial Bank of Commerce
  
• National Bank of Canada
  

 
Commercial Banks typically offer the lowest interest rates, along with special mortgage products and benefits to customers. Commercial banks are usually on top of the list when it comes to the best interest rate discounts and specials.  However, their lending standards are strict and the turnaround for getting a loan is far longer than most lenders. 
 
2) Trust Companies:  
Trust companies are generally the next step down from commercial banks.  They are an alternative lender, whose mortgage rates are marginally higher than banks, and their loan guidelines are more flexible. Further, they may charge a small fee for arranging the loan called a lender fee. This lender fee is usually .50 – 1% of the gross loan. This fee is charged in addition to interest rate. 

3) Credit Unions:  
Another option to getting cost effective mortgage financing is through a credit union. Credit unions offer a full range of bank services. They cover off everything from loans of all descriptions to various types of accounts such as saving, checking, etc. Their interest rates compare with bank rates in most cases. Credit unions are non-profit, so they often have lower fees than traditional banks. Credit unions are community oriented, offering fast and personalized services to their customers.

4) Mortgage Investment Companies:
Mortgage investment companies are non-bank lenders who provide creative financing solutions. They mainly cater to customers who have poor or damaged credit, and little or no income to show.  They take on riskier loans and are primarily an equity lender. They put a bulk of the weight for approval on the type of real estate and the amount of equity available to lend on. Their rates are much higher that banks, credit unions & trust companies. They are a flexible lender with far fewer lending guidelines, but all at a higher cost than most market lenders. They also charge a lender fee for their services. Lender fees can start as low as .50% of the gross loan and go up from there.

5) Private Lenders:  
Private mortgage lenders are individual people who lend their own funds for mortgage financing. Private lenders are private individuals who could be a friend, family member, acquaintance, etc. Private mortgage lenders are usually very flexible and determine their own lending guidelines. They are great to work with one on one, as they call their own shots, since it is their money. Their interest rates are higher than most lenders, and they may charge a fee for the loan in addition to. Turnaround for approval and funding with a private lender can be quick. This is because they have far fewer guidelines, and the buck stops with them.

6) Vendor Take-Back mortgage (VTB):
A vendor loan is when the seller of a property extends a loan to buyer to help secure the sale of the property. This happens when the buyer does not have enough resources to close on the sale of a property. If down payment & the approved 1st mortgage of the buyer is not enough to cover the price of a piece of property, there will be a shortfall. The seller may carry back a loan in the amount of the shortfall, so the buyer can close on the sale. This will ensure that there are enough funds to complete on the sale. The vendor loan in this case would be a 2nd mortgage secured against the property, right behind the 1st mortgage. The vendor loan would be registered in favour of the seller, yielding interest to the lenders benefit. The details of the vendor loan are usually negotiated directly between the seller and purchaser.

7) Assuming an existing mortgage:  
Another option to getting a mortgage when purchasing a property, is to assume the existing mortgage on that property. You may legally take over a mortgage by assuming the original loan. In order to do this, you must meet the lenders requirements. That is that you would have to fully qualify under the lender’s guidelines. Further, you would have to carry on with the existing rate and loan provisions if you assume the loan. If this is an option you might be considering, you must ensure the loan is assumable, and get proper legal advice as to your legal obligations under the original loan.

8) Reverse Mortgage:   
A reverse mortgage may be an ideal loan option for seniors who have plenty of equity in their home. The equity in the home may be used to get a loan called a “reverse mortgage”. Unlike regular mortgages, there is no repayment required from the borrower until they pass away, or the home is sold. This allows the borrower access to funds without having regular monthly mortgage payments. The borrower can decide if they want the loan in one lump sum, or disbursed in set up intervals. It allows folks to hold on to the ownership of their home and have funds available for their day to day. The costs associated with reverse mortgages is often higher than most other alternatives, but it offers definite advantages to the elderly, who would not typically qualify for a bank loan.
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As you can see, there are many options to pursue for mortgage financing. It would be strongly advised that one should seek out the services of a mortgage broker to better understand the options best suited for a borrower. If you’re a current homeowner looking to explore your mortgage options, get in touch with us for a free quote today: 604.620.2697​.

How Does a Second Mortgage Work?
Now that you know more about the basic principles of second mortgages and what you can use the money from them for, let’s take a closer look at how they work. Everyone will have a different scenario, but the principles remain the same. That is to say, if you bought a home, you may be able to access up to 75% of its value, less the amount owing on your mortgage, in the form of a home equity loan, or second mortgage.

What does that mean for you? Check out our Home Equity Calculator to get an idea of your available equity. Unlike factors like income, the amount that you can qualify for under a second mortgage ultimately depends on how much equity you have to borrow against. To learn more about borrowing using your home equity, click here.

The Advantages of Taking Out a Second Mortgage
Second mortgages have many key advantages to offer, and if you use the money that you borrow wisely, you can end up doing better than ever. For one thing, the fact that there are no limits as to what you can use the money for is a huge advantage. 
It’s your equity which means you can use it any way that you want. If you want to use that equity to finance a college or university education for your children, then by all means, do it. Likewise, if you want to use that hard-earned equity to buy yourself a new car for the family, you can do that too. That’s the kind of freedom that a home equity loan from Silver Hill Mortgage can help you achieve.

The list of advantages doesn’t stop there, second mortgages also tout lower interest rates than credit cards. One of the most common mistakes people make when they need cash fast is to charge everything to their credit cards until they’re all maxed out. When you max out all of your credit cards to conquer an unexpected expense like a medical emergency, you’ll be paying through the roof in interest on those cards. If you had gotten a second mortgage instead, you’d have a much lower interest rate on the loan than you’d find with any credit card.

Another advantage of second mortgages is the fact that you can typically borrow up to 75-80% of your equity. If you added up the total credit limit between all of your credit cards, you might be able to get a few thousand dollars. With a second mortgage - you can qualify for much larger amounts. It is important to note that the experience you’ll have taking out a second mortgage largely depends on who you work with. Have a question about second mortgages and live in the Lower Mainland? Get in touch with us and we’d be happy to chat.

Find the Silver Lining with Silver Hill Mortgage
Ready to take charge of your financial future? Then you’re ready to have a chat with us at Silver Hill Mortgage. We understand what it’s like to fall upon hard times, and that’s why we have such a strong reputation for helping people through similar situations. 

If you think a second mortgage might be right for you, give Jim a call at 604.620.2697​ to answer any questions you might have about getting started. ​