Tailored solutions for 1st and 2nd Mortgages
1st MORTGAGES

A 1st mortgage is the primary or initial loan obtained to finance the cost on a property. As a primary loan that pays for the property, it holds priority over all other liens in the event of a default. If you default on your mortgage, the lender has the right to repossess the home, sell it, and use the funds to pay off your debt.
This loan is identified by competitive rates, flexible terms and is secured by the property itself. It is repaid to the lender in monthly installments that include a portion of the amount borrowed, property taxes, insurance, and interest. These monthly payments our ongoing until the lender has been paid in full.
Property is considered one of the most valuable assets you can ever own. Discover the key to unlocking your dream home with our 1st mortgage solutions. At Uptown Financial we understand that securing a home is a significant milestone in your life, and we are committed to making your homeownership aspirations a reality, even when the banks say ‘No’. We strive to make this process easy and will provide you with the financial support you need every step of the way. Your dream home awaits – let us be your partner on this exciting journey.
Mortgage advice from our Uptown Experts
Working with an expert while making one of life’s biggest financial decisions is crucial in order to secure the right mortgage to meet your unique financial needs. We understand that the best mortgage advice will be client specific but there are general factors to consider that will help you prepare for the process.
Pre-Approval
Save time house hunting, seeing only homes you can afford. Before you fall in love with your dream home, make sure you know the mortgage amount you qualify for. Seek a pre-approval from one of our Uptown Mortgage
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Experts today.
Down Payment
It is important to understand how much your down payment will influence your mortgage rate, the property you can afford and whether you need to purchase default insurance. Saving for a down payment can be challenging
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but can be managed through saving programs such as RRSPs or TFSAs.
Home Buyers Programs
The government of Canada offers various homebuyer assistance programs that can help relieve the financial stress when making that big purchase. Some of these incentives include the Home Buyers Plan, Land Transfer
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Rebates, Tax Credits, and GST/HST rebates.
Credit Report
Mortgage lenders, including banks and private lenders, often base lending decisions on your credit score and credit history. Due to this reason, it is important to regularly check both so you have an idea
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of your current credit position and what lenders will see. This will also allow you to verify its accuracy and any incomplete information.
Mortgage Insurance
Borrowers are required to purchase mortgage default insurance if they make a down payment less than 20% of the home’s purchase price. This insurance will reimburse the mortgage lender if you stop making your mortgage
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payments and therefore will provide your lender with more confidence by decreasing their risk.
Costs
When shopping for a new home, it is important to know and prepare for the additional costs that you will have to pay on top of your down payment. Some of these hidden costs include legal fees, appraisal
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fees, home inspection costs, condo fees, home insurance, land transfer taxes, GST/HST, and moving expenses.
Preparing for your
1ST Mortgages
1ST Mortgages
Buying your first home is a big deal. Once you have found your dream home, you are ready to negotiate your 1 st mortgage. Consider these steps towards your own front door that could help you save a substantial amount of money.
Step One: Know What Mortgage Terms You Want
Before entering mortgage negotiations, it is essential to familiarize yourself with the loan options that are available to you. Your best strategy is knowing what type of loan and terms you are looking for and how that will affect the cost of the loan.
You should know: Fixed or Variable Mortgage?
You should know: Open or Closed Mortgage?
Step One: Start Loan Shopping
Once you have an idea of what type of mortgage you want, it is crucial to shop the market for the best rates and get quotes from at least 3 different lenders. This step is often overlooked but holds immense importance in securing the best mortgage deal. Knowledge is key, research the best options.
In addition to the interest rate, you will want to compare the full loan scenario with each lender and know the actual cost of the loan. When comparing your loan estimates, look at each lender’s fees including origination and application fees. A helpful tip is to look at the annual percentage rate (APR). The lower the APR, the lower the actual cost of the loan will be.
Step Three: Speak to Our Uptown Mortgage Experts
Our team of Mortgage Experts have access to multiple lenders and can offer a wide range of mortgage products that most banks can’t compete with. We are trained professionals licensed to act on your behalf and give you professional guidance to secure the most favourable loan. Consider us your personal mortgage advisor.
We will save you both time and money by navigating through the complex world of home financing to find you the best mortgage product without the stress and hassle. We will handle all the paperwork and negotiations since we have established unique relationships with various lenders increasing your opportunity of higher savings. With Uptown by your side, we will keep you updated on the latest trends, rates, and regulations so you’re always in the know.
Step Four: Ask For A Lower Rate
Getting your first mortgage is the best time to negotiate mortgage terms as lenders will want to secure your business. Research confirms that having multiple loan estimates for comparison will often lead to lower rates. These comparisons will help you choose your preferred lender and prepare you for the negotiation process by bargaining with the lowest rate you received. It does not hurt to ask for a lower rate or negotiate lowering fees in other areas associated with the mortgage
Start Your Mortgage Pre-Approval
Get a head start with an Uptown mortgage pre-approval to buy your home. We can help you lock your rate and know exactly how much you can afford. Start your mortgage pre-approval online.
2nd Mortgages
Second mortgages are a loan borrowed against the equity in your home when you already have a first mortgage. It is registered in the second position since there is already a first mortgage registered on the title of your home. This means that your first mortgage will get paid off before any payments are made on the second mortgage. When you take out a second mortgage, you can borrow up to 80% of the equity in your home. The main benefit of a second mortgage is that property owners can obtain large sums of money at relatively lower interest rates than a personal loan or credit card.
A second mortgage is just like any other mortgage and comes with a term, interest rate, monthly payment, and closing costs. Since the approval is simply based on equity, they are riskier for lenders due to the higher chance they won’t get their money back if your house is foreclosed. Due to the risk factor, second mortgages typically have a higher interest rate than first mortgages.
With a second mortgage, you are free to use that money however you wish. Whether you are looking to consolidate debt, embark on a home improvement project, or pursue other financial goals, Uptown Financial is here to help. With our competitive rates and personalized loan options, you can tap into your home's equity and access the funds you need quickly. Our team will work closely with you to tailor a second mortgage plan that aligns with your unique financial objectives.
Credit Score
A higher credit score translates to better second mortgage rates—it’s that simple. High credit scores indicate lower risk to lenders, rewarding responsible spending habits.
Property Value
Perhaps the most crucial factor in determining your second mortgage rates, property value reassures lenders in case of payment defaults.
Income
A stable and consistent income stream boosts lender confidence, affirming your reliability as a borrower.
Pros:
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Access Your Equity: Your home is one of the most valuable assets most
Canadians own. A second mortgage allows you to convert this typically asset into accessible cash, effectively funding yourself. - Low Interest Rate: While generally higher than first mortgages, second mortgages offer some of the lowest interest rates available, much lower than those of personal loans and credit cards.
- Tax Benefits: If used for home improvements or repairs, the interest on a second mortgage can be tax-deductible in Cananda.
Cons:
- Lengthy and Expensive Application Process: Applying for a second mortgage is similar to applying for your first. The approval process can be time-consuming, and you will incur closing costs as well.
- Loan Size Limits: The amount you can borrow is limited by the amount of equity you have in your home.
- Additional Monthly Payments: Taking out a second mortgage means adding another monthly payment to your budget.
- Risk to Your Home: Using your home as collateral means that if you cannot make payments, you risk losing it.
Why Get a 2nd Mortgage
Instead of Refinancing?
Instead of Refinancing?
A cash-out refinance shares many similarities with a second mortgage, but what sets them apart? When you choose to refinance your first mortgage, you can borrow up to 80% of your home’s value. The key difference lies in the amount borrowed and how it’s used. In a cash-out refinance, the amount you borrow is given to you as cash, which can be utilized for purposes like debt consolidation or home renovations. Refinancing means resetting your mortgage terms, which could alter your mortgage rate and payments.
Opting for a second mortgage allows you to access additional funds without modifying your existing mortgage. For instance, if you’ve secured a favorable rate on your first mortgage, refinancing might not be ideal if it means potentially higher rates. Instead, a second mortgage lets you borrow more money while maintaining the terms of your first mortgage. Additionally, refinancing involves paying closing costs which can be significant when in comparison to the fees of a second mortgage.