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A Look at Second Mortgages in the GTA

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Second Mortgages in the GTA

 
If you have recently been concerned about how to pay down your current debts, how you will afford your children’s post-secondary education, or if you are in need of serious home renovations, you should consider taking out a second mortgage on your home in the GTA.
 
A mortgage is a type of real estate loan that allows you to borrow money from a financial institution or purchase your home or property. Second mortgages are like normal mortgages in that it is a loan from the bank for the purpose of your home’s finances, but it is different in that it allows you to use the amount of home equity that has accrued in your home over time. They are often less than your current mortgage but are considered a slightly higher risk, as the lender will be the last to be paid back if you default on payments or your home falls into foreclosure.  

The amount that is available for lending is all based upon a few factors such as:

  • Current home equity available
  • Credit score
  • Any other outstanding debts
All financial lenders will take these items into consideration when you apply for a second mortgage. This will mean varying interest rates and term lengths, so it is important to pick a bank or lender that suits your needs.

 

 

As mentioned before, second mortgages are often used in the GTA for consolidating and paying down existing debts, providing funds to pay for your child’s post-secondary education, unexpected medical expenses and to use for major home renovation projects.

 

Second Mortgages for Financial Assistance and Consolidating Debt

 

Interest rates with second mortgages are fixed and are usually lower than most credit cards. Second mortgages offer a more controlled and less-expensive way, when compared to conventional credit cards, to pay expenses. They are also good for when you are consolidating multiple debts. Doing this means that you pay less interest over time to multiple creditors, allowing you to pay off those debts faster. The second mortgage gives you the advantage of having a large amount of income at hand to make larger contributions to you debt repayment plan.

 

Paying Educational Costs with a Second Mortgage

 

If you have outstanding educational loans or are looking at options for how to pay for your child’s continuing education, second mortgages offer homeowners a great alternative. Since second mortgages often have lower interest rates than conventional educational loans, they can be a better option for you. As long as the equity in your home is sufficient, a second mortgage can help you pay the costs.

 

Home Renovations and Second Mortgages

 

Whether your home in the GTA requires a much-needed repair, or if you are looking at upgrading your space, a second mortgage can help pay your expenses along the way. Instead of putting all of your expenses on a high-interest credit card, or emptying your savings, a second mortgage gives you the flexibility to pay for ongoing construction costs at lower rates. An added benefit is that with the right upgrades, the home renovations can even increase the value of your home, which means a better price if you ever want to sell!

 

If you are from the GTA and are faced with large debts, unforeseen expenses or costly upgrades, a second mortgage can be a wise investment for you. Their low interest rates and flexible repayment terms give you freedom when tackling life’s large expenses. It is always recommended that you speak with trained professionals that can help answer all of your questions and recommend a solution that is right for you.

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