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Securing 2nd Mortgages In Brampton

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Owning a home is a significant investment. As you begin to make payments on your mortgage, you begin building equity in your home. Many homeowners are unaware of the equity in their homes and the potential financial freedom it can afford them. A home equity line of credit, or second mortgage, is an excellent financing alternative to credit cards and other forms of borrowing available to homeowners. A home may have multiple mortgages, ranked by the date on which the money was borrowed. Second mortgages give Brampton homeowners the financial flexibility to help them get out of debt, send their children to school, or pursue their own goals and opportunities. Many homeowners use second mortgages as a way to fund home-renovation projects that can add value to their homes, which can increase the amount they can leverage against it.

 
When Is Refinancing My Home Appropriate?

 
It might seem inconceivable to risk your home by taking on a second mortgage. These types of loans are appropriate when you need large sums of money. Whether you’re short on cash or the space on your credit cards is too limited, taking out a second mortgage could be the right solution for your particular situation. Homeowners generally are subject to much lower interest rates when securing a second mortgage in comparison to borrowing money from a credit card company. This interest is also tax deductible, whereas the interest paid on your credit cards is not. This makes second mortgages a popular form of debt consolidation. Homeowners can reduce their monthly interest, paying off all their debts, leaving only one simple payment to take care of at the end of the month. Here are some other times in which refinancing your home could make sense:
  • Home improvement projects
  • Emergency situations
  • Purchasing additional homes
  • Creating a home equity line of credit (HELOC)

Where Can I Get A 2nd Mortgage?

 
Second mortgages are available from nearly any lender. Large banking institutions often have strict criteria that may be difficult for homeowners to qualify for. However, it is possible to refinance your home even if you have bad credit. A mortgage specialist can not only help you get approved for a loan, but can also help you get back on the track to good credit and financial freedom. There are private lenders who are willing to approve second mortgages to riskier borrowers.
 
Most importantly, it is important to consider how feasible a second mortgage is given your current financial situation. Homeowners should have a steady and reliable income in order to feel comfortable about making their payments. Homeowners need to prepare for fluctuations in the interest rate as well. Failure to make your payments will put your home at risk. Second mortgages can be a serious risk when mishandled, potentially leading to the foreclosure of your home. It is important to properly manage and allocate your money. Make sure the intended use of the funds is a risk worth taking, because 2nd mortgages can give Brampton homeowners the financial flexibility needed to handle nearly any project or unforeseen expense. 

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