Are you a homeowner living in Brampton who is wondering how you might access the equity in your home to get some cash? One solution is a second mortgage. A second mortgage is simply a secured loan that uses your home equity as collateral. Most lenders will allow you to borrow to 80% of your home equity when you get a second mortgage. In other words, if you have $200,000 in home equity, you may be able to borrow up to $160,000 with a second mortgage.

Why should you choose a second mortgage in Brampton?

Brampton homeowners choose to get second mortgages for a wide variety of reasons including consolidating debt, paying for a child’s education, and making home renovations. A second mortgage is one of the best tools you can use when you need to borrow a large sum of money because the rates are much lower than other types of loans.

Additionally, because a second mortgage is a secured loan, you don’t need to have perfect credit in order to qualify.

How to get the best rates for a second mortgage:

Like any product, the best way to get the best price (in this case, the best interest rate) is to shop around. But because mortgage products are more specialized, it is best to have an expert shop around on your behalf – that is, it is best to work with a professional mortgage broker.

Of course, your mortgage broker will be able to get you even better rates if you have good credit – but regardless – they will be able to find you the best rates that you can qualify for.

How to get a second mortgage even with bad credit:

If your credit is less than perfect, you probably won’t be able to get a second mortgage with a traditional lender like a bank or credit union – but that doesn’t mean that you can’t get one at all. If you have bad credit, you best option for a second mortgage will be either a specialty lender who helps people with bad credit or a private lender. Your mortgage broker will help you make the best choice for you.

Advantages of using a mortgage broker for a second mortgage:

As mentioned, if you want to get the best possible interest rate on your second mortgage, it is a smart idea to work with a mortgage broker. Other advantages include that your broker will take the time to work with you and answer all of your questions. Ultimately, you will save yourself a lot of time and money by working with a broker.

Contact us today!

Are you a homeowner in Brampton contemplating getting a second mortgage? If so, give us a call today to speak with one of our brokers.