Second mortgages in
Kitchener can offer a cost-effective and quick means of accessing funds for
major expenses. Taking out a second mortgage allows the homeowner to borrow
against the equity of their home. Here are some reasons why more homeowners in
Kitchener are taking out second mortgages.
costs of post-secondary education have led students and their parents look for
alternative sources of funding. A second mortgage could allow for college or
university education to be paid off at a low interest rate and within a more
suitable time frame.
personal circumstances such as a new addition to the family, might mean that
you will need to upgrade your home. Renovations, home improvements and additions
can add to the market value of your property – and a second mortgage may be the
ideal tool to finance your project.
Whether it’s a summer
cottage or a winter chalet, owning a second home can be a reality with a second
mortgage. With a second mortgage, there is no need to wait until you’ve saved
a down payment for a second home investment, but you must have the funds and
cash flow to comfortably make both mortgage payments.
cases, homeowners may have committed to high interest bearing loans (personal
loans, vehicle finance etc.). You could consider combining those various
interest rates and payment dates by leveraging the residual value of your home
to create a single amalgamated lien – which will most likely be available at a
lower interest rate.
Benefits of Second
Mortgages in Kitchener
who take on second mortgages also enjoy tax benefits. The tax relief proves
very useful when it comes to getting home loans since this allows you to better
cope with the interest rates from their second mortgage loans. The same does
not apply to accrued interest from credit card loans for example, which can
snowball significantly over an extended period of time.
you can borrow depends on a number of factors. The top consideration is how
long you have owned your home and how much equity you have accumulated through
your mortgage payments. Mortgage calculators can also
help you identify how much you can afford. To qualify for a second mortgage you
must have at least 15 per cent equity in your home and the lender will also
- Equity – The more equity you have, the
less risk the lender faces;
- Income – Steady income from which you
can make your second mortgage payments;
- Property – The marketability of your first
home is factored by the lender. If you default on payments, your home will be
For anyone that wants to take advantage
of the net worth built up in their home, second mortgages are the logical
solution. Rather than sit with your home equity
tied up, you are able to take those funds and spend or invest them however you
There are many reasons why homeowners
should consider refinancing their most important asset. Second mortgages in
Kitchener help homeowners achieve their financial goals sooner.