Second Mortgage in Mississauga
A second mortgage is a financial tool that is used by many homeowners across Mississauga to help them consolidate debt or to finance large expenses such as home renovations or investing in a new business. A second mortgage is simply a loan that is secured using the equity in your home and most lenders will allow you to borrow up to 80% of that equity. This means that if your Mississauga home has $200,000 in equity that has accumulated over the years, you may be able to borrow up to $140,000 with a second mortgage.
Why should you choose a second mortgage in Mississauga?
There are many advantages to choosing a second mortgage over other types of loans. One of the biggest advantages is that compared to unsecured loans such as credit cards or personal lines of credit, a second mortgage tends to come with a much lower interest rate.
Second mortgages are often used by homeowners in Mississauga for purposes such as consolidating debt, financing a home renovation, paying for a child’s education, or for any other purpose for which you may need to borrow a large sum of money.
How to get the best rates for second mortgages:
To get the best rates on a second mortgage, it is important to have good credit and work with a mortgage broker. Having good credit will allow you to obtain a second mortgage from a traditional lender such as a bank or credit union – this is where you will get the best rates. Secondly it is important to work with a mortgage broker, as a broker can compare rates on your behalf and negotiate rates with lenders.
How to get a second mortgage even with band credit:
If your credit is less than ideal, don’t worry. As long as you have sufficient equity in your home, you should still be able to get a second mortgage. Talk to your mortgage broker about getting a second mortgage with a speciality lenders who helps those with bad credit. Your interest rate will be higher that you would get with a traditional lender, but still much lower than with other types of loans.
Advantages of using a mortgage broker to get a second mortgage:
There are many reasons why it is important to work with a mortgage broker when applying for a second mortgage. Not only will your broker compare rates and terms on your behalf, but they will match you with the lender that is best for your situation. They will also help you through every step of the process, answer you questions, and make sure that your application is complete and accurate to avoid delays in you receiving your loan.
Contact us today!
If you live in Mississauga and are interested in learning whether a second mortgage is right for you, contact us today for a consultation.