There comes a time when someone might get the need to acquire a second mortgage. There are different circumstances for example, if someone has spotted another house and they like it more than the current one, they might need to take a second mortgage so that they can acquire it. Another instance is when someone already has a current mortgage running and they get relocated due to their work and they need to move. They may want to take a second mortgage in Toronto where they are going to settle because there is no need to continue paying for the mortgage and they no longer live there. In both cases the holder of the mortgage might look for another person to transfer the initial mortgage to. Other people will take a second mortgage for business purposes. That means that they will take one so that they can higher the house and use the rent as the monthly instalment.
In either case the holder of the mortgage needs to prove that they are capable of handling more than one loan. They have to prove this to the credit bureau which regulates all kinds of loans including the mortgage. The credit bureau is very strict because loans form part of the economy as a whole and can even lead to an economic depression if not controlled well. No institution is supposed to offer a mortgage loan to an individual before they have been cleared by the credit bureau. They have a database where they keep a track record of all the loans that have been taken by any party through time.
The national government created the regulatory body so that the financial system can run smoothly and in a responsible manner. The lending institutions also have the responsibility of ensuring the mortgage system is run in a responsible manner in the way they dish out the loans. This is very critical for the economy and also for the people who are requesting for the loan. The loans have to be repaid definitely so that they can open up doors for other people who would like to take up some mortgages too. Most of this is commonplace to the best mortgage brokers.
The people taking up the mortgage also have to be responsible to repay the installments in time so that the process can run smoothly. In case of default in repayment the lenders might have to reposes the house and they can even end up auctioning it to other people. That is why a contract has to be signed giving the terms and conditions that will govern the whole mortgage process. the installments have to be paid on a monthly basis of which most of them are deducted from salary.