Second Mortgage Oakville
If you have pressing financial responsibilities that need to be met, utilizing your home equity through a second mortgage could be a good option.
The team of mortgage specialists at eMortgage Solutions has been helping homeowners make responsible mortgage decisions for years. We can help you understand your options and gain access to some of Oakville's most trusted lenders and the best second mortgage rates.
To find out more about second mortgages, or for all other inquiries call us at (416) 258-0156.
What Is a Second Home Mortgage and How Does It Work?
A second mortgage is a second loan that you can take out on your home in addition to your primary mortgage. The loan typically lasts 1-2 years but may be extended at the homeowner's request. The second mortgage is paid alongside the first.
Homeowners may consider taking out a second mortgage if they are in a financial bind and need quick cash. The second mortgage allows homeowners to utilize their home's value without having to sell their property.
How Much Can You Borrow for a Second Mortgage?
The amount you can claim for a second mortgage is dependent on the value of your home, and how much the lender is willing to offer you. For the most part, this amount will be up to 80% of the value of your home, minus the amount owed on your primary mortgage.
Book a consultation with our trusted team today to discuss your financial options.
What Is the Difference Between a Second Mortgage and a Home Equity Loan?
A home equity loan is very similar to a second mortgage as it allows the homeowner to utilize the value of their home while continuing to pay off their primary mortgage.
To qualify for a home equity loan you must be able to prove stable and sufficient income and a good credit. In return you will benefit from a lower interest rate and easy access to your line of credit.
A second mortgage allows you to borrow up to 80% of your home's appraised value. The interest rates are generally higher than that of your first mortgage. Your lender will usually deposit one lump sum to your bank account.
Homeowners tend to take out home equity loans to invest in their homes, while others take out second mortgages to secure pressing financial situations.
Is Getting a Second Mortgage a Good Idea?
While a second mortgage can be beneficial, it is not risk-free.
If you cannot pay off your loans, your home will face foreclosure, in which case the first mortgage will be paid off from the sale of the house, before the second. Therefore, because the second lender is taking on more risk, they can charge a significantly higher interest rate, meaning you are taking on a much larger financial responsibility.
It's crucial to carefully consider these factors before you invest in a second mortgage.
Invest in a Second Mortgage with the Help of eMortgage Solutions
Our team will take the time to understand your financial situation and help you decide whether getting a second mortgage is the right option for you.
To discover the best second mortgage interest rates in Oakville, get in touch with us today.
