Sentences with phrase «higher loans against the property»

Not exact matches

In other words, with a Home Equity Loan or HELOC, you will have two mortgages on your property; in all likelihood, it will have a higher interest rate than your first mortgage due to the fact that it will be held in a second lien position against the property.

The mortgage rules also demand that lenders be paid in order of who came first so lending against property with a very high loan to value ratio would be impractical.

Since personal loans are not against collaterals like property etc. the rate of interest is considerably higher.

● Reduced monthly payments may mean a longer loan term overall ● You may have to pay an arrangement fee ● If you have a poor credit rating you may not be able to obtain a loan or you may be offered a loan with high interest rates, or secure it against a property

This includes new loans and refinancings secured against commercial and high value residential property by banks and other institutional lenders to investors, trading companies and developers.

High - ratio Mortgage - A mortgage that exceeds 75 percent of the loan - to - value ratio; must be insured by either the Canada Mortgage and Housing Corporation (CMHC) or a private insurer to protect the lender against default by the borrower who has less equity invested in the property.

In particular, in times of economic downturn and weak property markets during which there is increased risk that the NOI of the property may decline and the DCR fall below the minimum benchmark required by the bank to approve the loan, and even below 1, banks are requiring a higher DCR, so they are protected against future declines of NOI.