Second Mortgage in Mississauga
If you are a homeowner who is looking to access some quick cash, taking out a second mortgage on your home could be a good option.
The team of insurance brokers at eMortgage Solutions has been assisting homeowners with mortgage decisions for years. We will take the time to understand your financial situation and find you the best second mortgage rates in the area.
For unparalleled guidance and access to Mississauga's most trusted lenders, set up a consultation with our brokers today. Call (416) 258-0156.
How Does a Second Mortgage Work?
A second mortgage is a loan that you can take out on your home, in addition to your primary mortgage. It allows the homeowner to utilize a large percentage of their home equity to pay for other pressing financial obligations.
If you qualify for a second mortgage, you must make payments alongside your primary mortgage. Usually, a second mortgage is taken out for a short term, 1-2 years. Although, the homeowner may choose to extend this period if needed.
How Much Can You Borrow with a Second Mortgage?
The amount you are entitled to borrowing on a second mortgage is dependent on the overall value of your home. Your second mortgage lender will make you an exact offer. Typically, you are able to borrow up to 80% of your home's total value, minus the amount owed on your primary mortgage.
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Is Getting a Second Mortgage a Good Idea?
Getting a second mortgage allows you to utilize your home equity without selling your property. There are several risks associated with taking out a second mortgage that is critical to consider:
Second Mortgage Interest Rates
When you take out a second mortgage, you must utilize the services of a different lender than that of your first mortgage. In the case that you cannot pay either mortgage, your home will face foreclosure, at which time the sale of your home will go towards paying off your first mortgage. Therefore, the second lender is taking on more risk and will charge higher interest rates than that of the primary lender.
Taking out a second mortgage is a significant financial responsibility. The experts at eMortgage Solutions can help you weigh the pros and cons and decide if it's the right decision for you.
What Is the Difference Between a Second Home Mortgage and a Home Equity Loan?
- A home equity loan is more challenging to qualify for compared to a second mortgage as you must prove employment and good credit
- With a home equity loan, your interest rates will be lower and the repayment period will be longer
- A second mortgage is easier to qualify for, but the term is shorter and the interest rate is higher
Getting a Second Mortgage in Mississauga
For years, our specialists have been helping homeowners understand the ins and outs of second mortgage loans. If you are interested in finding out if getting a second mortgage is the right choice, set up a consultation and talk to a eMortgage Solutions expert today.
We look forward to working with you!