Assadi Private Capital considers third-position mortgages where the property has sufficient equity to support the additional financing. We work with mortgage brokers and other financial professionals whose clients need funds while keeping their existing first and second mortgages in place.
Our maximum combined loan-to-value ratio for third mortgages is 65%. This includes the existing first mortgage, existing second mortgage and our proposed loan. A lower limit may apply depending on the property, existing debts and circumstances of the transaction.
An Option When Two Mortgages Are Already Registered
A third mortgage may be worth considering when a borrower needs additional capital but replacing the existing mortgages would be costly or impractical. Potential uses include business funding, debt consolidation, property improvements and short-term financing ahead of a planned sale.
Why We Require a Lower Loan-to-Value Ratio
A third mortgage ranks behind the existing first and second mortgages. If repayment is delayed or enforcement becomes necessary, interest on those prior mortgages and related costs can reduce the equity available to repay our loan. Our maximum combined loan-to-value ratio of 65% helps provide a buffer for these amounts and potential changes in property value.