Second Mortgage – Financing Made Easy!
Canadians are reaching a historical high of unsecured debt. There are a large number of consumers who are struggling to meet their monthly obligations and are overwhelmed by high-interest debt.
Today, more homeowners are looking for solutions that can alleviate the pressures of today’s market.
You can borrow more money against your home by taking out a second mortgage, either through an additional mortgage (home equity loan) or a home equity line of credit.
If you know what you are looking for, Apply now, contact us if you’d need help with your best available options, or read on to find out all you need to know about second Mortgages.
What Is a Second Mortgage?
A second mortgage is a term used when more money is borrowed on a property that already has a primary mortgage on it, hence the term “second mortgage”.
A second mortgage can be your ticket to a luxurious upgrade of your home, getting out of debt, or investing in the future. Plus, since you already have an existing mortgage, it’s alot easier to get an Approval if you work with expert mortgage specialists!
The interest rate will generally be higher than your primary mortgage. But a second mortgage can give you the financial freedom to do what you need and invest in what matters most to you. So, if you’re ready to get creative with your finances, a second mortgage may be the answer.
Remember that it is always important to consult, and choose the best type of the second mortgage for your needs.
How Does a Second Mortgage Work?
If you get a second mortgage, you will continue to make your current payments on your first mortgage. You’ll also have new payments for the second mortgage.
You can choose from two different products if you want a second mortgage
Home equity loan is a lump sum of money that the lender deposits into your account. It works the same as your primary mortgage.
Home equity line of credit (HELOC) functions like a credit card. You can withdraw money from a revolving line of credit.
Second mortgage allows you to use your home’s equity. So instead of having money tied up in your home, you can use that money for current expenses.
Want to know more about second mortgages? Call us or schedule an expert consultation. We’d be happy to help.
How To Get a Second Mortgage?
Whether you want to consolidate debt, renovate your home, fund a child’s education, or even invest in other opportunities, a second mortgage can be an excellent solution.
Discover how to get the second mortgage you need with our expert guidance and user-friendly tools.
Assess Your Home Equity
The first step is to determine how much equity you have in your home. Use our second mortgage calculator to get an estimate instantly.
Choose the Right Type of Second Mortgage
There are various types of second mortgages, including home equity loans and home equity lines of credit (HELOCs). Each has its advantages and can be tailored to your needs.
Start Your Application
Fill out our easy-to-follow application form. Our mortgage experts are here to guide you every step of the way, ensuring you provide all necessary documentation and information.
Get Approval and Access Your Funds
Once approved, you’ll have access to the funds you need. Our team will help you understand all the terms and conditions, ensuring a smooth transition to managing your second mortgage.
Why Would You Take Out a Second Mortgage?
There are several reasons why you would consider taking out a second mortgage. Some of these include:
- Consolidate debts
- Repaying personal loans and other types of loans
- Eliminate property tax arrears
- Catch up on missed mortgage payments
- Stop foreclosure of your home
- Finance a car
- Home improvements or renovation
- Pay for higher education
- Start a business
You may also apply for a second mortgage to avoid paying the penalty to discharge your existing first mortgage. Discharging a mortgage is what you need to do after you’ve paid off the mortgage to regain the rights to your property from the lender.
If any of these circumstances sound familiar, TurnedAway can help! With our streamlined approval process and expert advice throughout the process, we’re here to help you make an informed decision when it comes to getting a second mortgage in Ontario.
Is It a Good Idea To Take Out a Second Mortgage??
A second mortgage works great for some and could be just what you need. If you find yourself in these situations, a 2nd mortgage might be the best solution for you:
Want to consolidate debt?
Second mortgages have lower interest rates than credit cards. If you have multiple credit card balances on several accounts, consider a second mortgage.
Need help covering expenses?
HELOCs are a good choice. As long as you keep up with your payments, you’ll have access to revolving credit. Plus, HELOCs only charge you interest on what you use. Payments are flexible, so you can choose when to make them.
Lender rejects refinance of your primary mortgage?
Second mortgages are also something to consider. This will help you save on closing fees.
You need to assess your situation before making a decision, and that’s where we can help.
Benefits of a Second Mortgage?
Just like any other product you consume in the market, a second mortgage comes with its advantages and disadvantages. You must research and weigh the pros and cons before applying.
Advantages of a second mortgage
- Bad credit is not a problem.
- You may use the unlocked equity for almost anything, including home renovations, medical expenses, loan repayment, and other unexpected expenses.
- Up to 80% of your home value appraisal can be accessible.
Disadvantages of a second mortgage
- It typically comes at a higher interest rate than your primary mortgage.
- Second mortgage is more expensive than some other loan options available, if you have very good credit.
- It increase your monthly payments and interest payments as you are borrowing more, and could get into negative monthly cash flow.
We can help you get the best interest rates and help you with your second mortgage needs. At TurnedAway.ca, we can turn your disadvantages into opportunities! Consult with our experts now to see how we can make it work to your advantage.
Do Second Mortgages Have Higher Rates?
Yes, 2nd mortgage interest rates are typically higher than primary mortgage rates. This is because a second mortgage comes with more risk for lenders.
The first mortgage takes priority in getting paid off should you default on your payments. Lenders of second mortgages risk not getting their money back if you default or foreclose.
But, applying for a second mortgage with a significant amount of equity and healthy finances will help you get a better interest rate than unsecured credit products.
How To Qualify for a 2nd Mortgage
You might be asking: Is it hard to get a second mortgage? Does it require good credit? The truth is getting a 2nd mortgage can be different for everyone.
To qualify, you need to meet specific second mortgage requirements. Lenders usually look at four criteria to determine if you qualify for a second mortgage.
Equity
The more home equity you have, the better your chances of qualifying and getting approval for a second mortgage.
Income
Lenders want to know that you have a dependable source of income that will cover your payments.
Credit score
The higher your credit score, the more dependable a borrower you are and the higher the possibility of getting a better interest rate.
The Property
Lenders want to secure their investment in case you default on your payments.
But what if you don’t meet the above requirements? Don’t get disheartened yet! Many lenders are willing to overlook credit and income criteria, but you must work with a broker specialising in these areas to get approval.
Contact us to learn how we can help!
We Get You Approved. Fast.
Have bad credit? Not a problem! We’ll work with you.
Apply for a second mortgage with bad credit now!
Where To Get a Second Mortgage?
There are usually three options you can explore to get a second mortgage. Each type of lender will have its criteria and interest rates. So, consider your finances and needs when choosing from these options:
- Your current mortgage provider or major bank
- Trust company
- Private second mortgage lenders
To work with one of the best online lenders, talk to one of our mortgage specialists to explore your options and see how you can qualify.
Can You Get a Second Mortgage With Bad Credit or When Not Working?
It’s possible to get approved for a second mortgage with bad credit, or you’re out of work.
In this situation, a second mortgage can be a good idea, especially if you’re trying to consolidate your debt. TurnedAway offers specialty 2nd mortgages that are prepaid for up to one year.
By capitalizing or adding the payments onto the loan, the homeowner has 0 payments to make. This gives individuals who are not working time to find employment.
Before agreeing to any loan terms, you want to ensure you have a repayment plan that you can stick to. Avoiding a default is vital to ensuring you build your home equity and credit score.
This can be a lot to consider, but that’s where we come in! We give the best advice on how to take out a second mortgage with bad credit.
Talk to a mortgage specialist from one of the best second mortgage companies in Ontario, and see what’s the best option for you.
Unemployed and Facing a Financial Situation?
We can lend a hand! Apply for a Second Mortgage now and get approved fast!
How Much Can You Borrow for a 2nd Mortgage?
Lenders use the total value of your property to determine how much you can borrow for your second mortgage.
First, they multiply the property value by the maximum borrowing amount, then minus the mortgage payments left.
Here’s an example:
Your home’s value is $500,000, and your maximum borrowing amount is 85%. You have $200,000 left to pay on your mortgage.
500,000 x .85 = 425,000 – 200,000 = 225,000
You can borrow up to $225,000 for a second mortgage. The maximum borrowing amount will vary from lender to lender and city to city.
The likelihood of getting 85% of your home’s value in Timmins may be more difficult than if you lived in Ottawa or another major city. The more populated a city, the more aggressive lenders tend to be.
If you’re still wondering, “How much can I get approved for a second mortgage?” and how much your monthly payment will be, you can get a clearer idea using our home equity calculator or by talking to one of our mortgage experts.
Secure Your Second Mortgage Today
Getting a second mortgage is one of the easiest products to get approved for, and they are extremely versatile.
They can be used for just about anything and arranged quickly if you work with an experienced mortgage broker like TurnedAway.ca. Take your time making this decision to ensure it’s right for you.
If you want more information about getting a second mortgage in Canada, contact us at Turnedaway.ca. We are on a mission to help as many Canadians as possible, with getting mortgage financing that fits their financial situation, in the most hassle-free way possible.