What is a ‘second tier lender’ and why might I need one?
If you're in the market for a mortgage, you may have heard the term "second tier lender" thrown around. But what does it mean, and why might you need one?
A second tier lender is a financial institution that specialises in providing loans to people who may not qualify for a traditional mortgage from a big bank. These lenders often have more flexible lending criteria, which can make it easier for people with less-than-perfect credit or irregular income to secure a mortgage.
So why might you need a second tier lender? Well, if you've been turned down for a mortgage by a traditional bank, or if you're self-employed or have a non-traditional source of income, a second tier lender may be able to help you get the financing you need to buy a home.
But it's important to note that second tier lenders often charge higher interest rates and fees than traditional banks. So while they can be a great option for some borrowers, it's important to weigh the costs and benefits before deciding whether a second tier lender is right for you.
At the end of the day, the most important thing is to work with a mortgage advisor who can help you navigate the complex world of mortgage financing and find the best solution for your unique situation. If you're considering a second tier lender, or if you have any other questions about mortgages, let’s chat!