Toronto, ON -- (SBWire) -- 11/23/2015 --Due to high real estate prices, Toronto home buyers have been flocking to condos for several years. The Mortgage Broker Store, an Ontario-based team of independent mortgage agents, now provides second mortgages on Toronto condos.

According to the Toronto Real Estate Board (TREB), condo sales are still going strong. In their latest Condo Market Report (October 2015), statistics show condo sales increased by almost 11 percent in the third quarter of 2015 when comparing to the same time period in 2014.

"The condominium apartment market segment has been a key contributor to overall growth in GTA home sales this year. With continued sales growth expected in the fourth quarter, we are on track for a new record in condo transactions through TREB's MLS® System this year," said TREB president Mark McLean.

Toronto condos are most popular with two specific groups: first-time home buyers and real estate investors. The lower price point allows for easier entry into the market, and gives landlords a return on investment that is difficult to find elsewhere due to today's high real estate prices.

The experts at the Mortgage Broker Store know there are many reasons property owners seek out a second mortgage. "It can be for renovations, for going back to school or to consolidate high-interest debt," says Ron Alphonso, president of the Mortgage Broker Store. "What's most important for us is how much equity owners have in their homes or condos."

Equity-based loans can make qualifying for a second mortgage easier for those in certain situations. Self-employed individuals, for example, typically have a harder time qualifying for loans from traditional financial institutions. Likewise, those who have experienced a job loss also have difficulty getting a second mortgage from a bank. Traditional lenders determine if a homeowner qualifies for a loan based on their income, and not on how much their home is worth.

"Since we are independent mortgage brokers, and not a big bank, we can lend money based on the amount of equity in a home," says Alphonso. "Now, those who own condos can also get a second mortgage."

Since second mortgages come with additional risks for lenders, it has been more difficult for condo owners to qualify for these loans. Condo owners tend to be younger or first-time home buyers, which typically means fewer years of credit history. Condo fees are also included in traditional lender's loan calculations, reducing a condo owner's chance of qualifying for a second loan or line of credit.

By working with a licensed mortgage broker, condo owners can qualify for a second mortgage based on the equity in their property. Equity can be calculated by taking the appraised value of the condo, then subtracting the existing mortgage balance. Homeowners with more than 15 percent equity in their condo often qualify for a second mortgage through a broker.

For a free consultation in regards to a second mortgage, contact the Mortgage Broker Store by calling 416-639-0786 or complete their online mortgage application

Contact:
Ronald Alphonso
Mortgage Broker Store
License #: M11001286
100 Consilium Pl. Suite 200, Toronto, ON, M1H 3E3, Canada
416-639-0786
ron@mortgagebrokerstore.com
http://mortgagebrokerstore.com/