Sometimes you need to refinance your first loan, sometimes you need to get a second mortgage. It can be hard to tell when which is right for you, and that’s when you need a Toronto mortgage broker to help you out. You can find mortgage brokers all across Canada who can help you with your options. Here we’re going to talk about the benefits of a second mortgage and how you can get the one that’s right for you. A second mortgage is just like your first mortgage, and the process is very similar!
What is a Second Mortgage?
Second mortgages are just like your first mortgage; you’ll be taking out another mortgage on top of your existing one and you’ll have it deferred usually for a set amount of time. You’ll wind up paying a little more in interest on your second mortgage, no matter how good or bad your credit is.
What Are the Benefits of a Second Mortgage?
Understanding the benefits of a second mortgage is all about understanding what you need before you start shopping for one. Do you just need a short term loan that you can pay off quickly? You may want to sign up for an adjustable rate mortgage so you don’t end up stuck in a long contract with the lender. Do you want to repair your home and pay off bills? You may want a fixed rate mortgage. Fixed rate mortgages allow people to borrow and pay back over a longer period of time, instead of trying to pay it all off in a two year period.
How do You Get a Second Mortgage?
Getting a second mortgage can be as easy as going into a bank. But if you want to get the best mortgage you’re going to want to consider getting a mortgage broker. Just like an insurance broker, a Toronto mortgage broker will help you compare rates from different lenders and see which one is the best match for you. Not all lenders are created equal, and depending on your own unique situation you may get better results doing things differently. Some people with poor credit get mortgages with private mortgage lenders while people with good credit may want to go the bank route. Either way, you want to make sure you’re getting the best rate on your next mortgage.
When you sign on for a second mortgage you could be stuck with that interest rate for 30 years. While interest rates now are fantastic (5%), depending on how your mortgage application is filled out you may have to pay much more. With a mortgage broker you’ll be able to get the financing you need without having to haggle with the banks. Instead of dreading one lender rejecting you and dashing all your hopes and dreams, you’ll be able to work with a myriad of lenders who want your business. When lenders compete you come out on top!
Visit our second mortgage page today, to learn more about how we can help you: http://www.homebasemortgages.ca/second-mortgage/