Second Mortgage in Toronto:
When Toronto homeowners wish to borrow money, they often turn to a handy mortgage tool called a second mortgage. While the name may sound a little daunting, a second mortgage is really nothing more than a secured loan using your home equity at a very low interest rate.
Why you should choose a second mortgage in Toronto:
There are many good reasons to choose a second mortgage over other types of loans. As mentioned, because the loan is secured, you will be paying much less interest than you would on other types of loans such as credit cards or even personal lines of credit.
Furthermore, if you have built up enough equity in your home, the amount you can borrow from a second mortgage can be substantial. Most lenders will let you borrow up to 80% of your home equity – so if you have $200,000 in home equity, you could be eligible to borrow up to $160,000.
How to get the best rates for second mortgage:
There are two keys to getting the best rates on a second mortgage. The first is to have good credit and the second is to work with a professional mortgage broker.
- Credit – Just like with a first mortgage, the better your credit is, the more likely it is that you will be able to get this type of loan with a traditional lender and therefore get the best interest rates.
- Work with a mortgage broker – Regardless of whether you have good credit or not however, it is always best to work with a mortgage broker. A mortgage broker works with many different lenders – they can compare their offerings and negotiate the best deal possible for you.
How to get a second mortgage even with bad credit:
If you do not have good credit, you will still be able to get a second mortgage – just not with a traditional lender. You may have to work with an alternative lender who specializes in bad credit mortgages, or even work with a private lender.
Your mortgage broker can help you choose the lender that is best for you.
Why Get A Second Mortgage:
Access cash quickly to use for any purpose you choose.
Enjoy low interest rates.
No need to break your current mortgage and pay cancellation penalities.
Advantages of using a mortgage broker for a second mortgage:
There are many reasons why it makes sense to work with a professional mortgage broker when you apply for a second mortgage including:
- They will compare rates and terms for you and help to get you the best deal.
- They work with speciality lenders who can help you if you have bad credit, are self-employed, or new to Canada.
- They will take the time to explain terms to you and answer any questions.
- They will save you time and money.
Contact us today!
If you are looking to get a second mortgage in Toronto, we can help! Contact us today to learn more.