Is a Second Mortgage or a HELOC Right for You?

second mortgagesWhen you’re refinancing your home you’re going to have many things to choose from; for most a second mortgage is the right answer. Here we’re going to go over everything you need to know about a second mortgage, how they’re beneficial and if they’re right for you. Before you make any choice about refinancing your home, talk to one of our talented Toronto mortgage brokers and see what we can do for you. Let’s get started!

What is a HELOC?

A HELOC is a home equity line of credit. Unlike a normal mortgage, this is a revolving line of credit; revolving means you can pay it back, borrow it back, etc. etc. over and over again, just like a credit card. These are great for some situations and disastrous for others. If you’re retired or retiring for example, you can take the equity out of your home and put it towards your daily expenses. One of our Toronto mortgage brokers will be able to help you find a low interest and fair home equity loan for this purpose. You want to be careful about taking money out of a HELOC account on a day to day business, as this can backfire on you rather quickly.

What is a Second Mortgage?

A second mortgage is a bit like a HELOC loan; instead of borrowing the money and paying it back again, you’re going to be able to borrow it one time and then repay it that one time. This is a great option if you’re looking for a large lump sum so you can pay off debts or purchase big ticket items. If you’re going to need a more steady income stream, you may want to think of a HELOC loan instead. Second mortgages are the de facto choice for most people who need a loan against their house. In both cases you’re going to need equity to borrow money.

What is Equity?

Equity is what you actually own in your home. It’s a good bargaining chip for when you need to borrow against your home. You’ll need to figure out your equity before you try and apply for a mortgage. Take the appraised value of your home and subtract any mortgages or debts that you have against the property. If you owe any taxes you should subtract this too, so you can get a realistic view of what’s going on. Now you know how much equity you actually have in your house.

Choosing between a second mortgage and a HELOC can be hard, but you’re going to need to make the right choice. Let one of our Toronto mortgage brokers help you make the right decision for your finances. Without competition, banks have zero incentive to make sure that they’re giving you the right deal. So make sure you’re getting the deal that’s right for you.

To find out how we can help you find a great mortgage, apply online here!

What Makes a Second Mortgage Different From a First Mortgage?

There are many different ways to finance your home, but second mortgages are by far the best for most home buyers. You’ll be able to get a large lump sum to pay off debts, for your children’s University funds or whatever else you need the money for. Since a second mortgage borrows against your interest in your home, you’re going to need to be careful about who you choose as a lender. We can help you; as Toronto mortgage brokers we can work on your behalf to find the right lender for you and your home.

How do Second Mortgages Work?

The first thing you need to know about second mortgages is that they don’t have to be repaid right away; a first mortgage usually enters into repaying right away. You may have to repay it within six months of closing or you may be able to wait decades. Since the risk of default is higher with this kind of loan you may wind up paying extra points of interest in the long term. This is just another reason you’re going to want a mortgage broker to help you find the right second mortgage for you; we’ll work hard to make sure you don’t pay a fraction more in interest than you have to.

What is Equity?

Equity is how much of your home you actually own. You may owe back taxes, you may owe on your first mortgage; whatever you owe on you’re going to have to subtract from the appraised value of the house. After you do that, you’ll have the equity amount that you hold in your home. You can borrow up to 70% of this amount (more or less depending on your case). It’s important to talk to your mortgage broker to make sure you know what a second mortgage would mean for your home equity.

What Are the Benefits of a Second Mortgage?

This will really depend on what you need the second mortgage for:

  • Avoid Foreclosure: It can help you avoid foreclosure of your home, by helping you get the money you need to pay off your first mortgage.
  • Pay Off Your Bills and Repair Your Credit: You can pay off bills and repair your credit; you’ll want to make sure that the interest rates and repayment terms will be better than the debts that you’re paying off or you’re just throwing good money after bad.
  • Get Money You Need Now and Repay it Later: Getting the money you need know and paying it back later can help you in more ways that you think. It could be decades before your second mortgage enters into repayment.

A second mortgage can give you the money you need to handle things now, but you’re going to want to be careful before you do it. Let us help you! With the right Toronto mortgage broker you’ll be paired with the right lender who will give you a fair and equitable lender.

Always Compare Second Mortgage Interest Rates

With so many options to choose from with second mortgages, you’re going to want to think about what kind of interest rate you can get. By working with us you can save time and money on your second mortgage; a mortgage broker doesn’t work for banks and only get paid at closing. This keeps the process honest and helps you get the best loan for you and your situation. Here we’re going to go over how interest rates can affect your mortgage and how you can get the lowest rates possible. Let’s get started!

Why a Second Mortgage?

Second mortgages are there for when you want to take equity out of your house and turn it into cash you need today. You’ll be able to spend that money on bills, sending your children to university or whatever you need; the important thing is that you spend this money wisely! You’ll want to make sure your new interest rate is better than the interest rates you’re paying now or you could end up in a debt trap that’s hard to escape from.

How Does Interest Affect Mortgages?

Interest is the root of all evil… if it’s done wrong. A lender makes no money just by giving you a loan; the profit comes from interest rates. The more interest they can charge you each month, the more money they can make over the life of your loan. Interest is one of the few things about borrowing money that you can control, and this is why it’s important to get the lowest interest rate possible at the beginning of your loan. This is why you will need a Toronto mortgage broker like us to help you get the best terms for your loan.

Is a Low Interest Second Mortgage Hard to Get?

They can be, but that’s where we come in. We’re experienced Toronto mortgage brokers with good relationships with local lenders. We will help you fill out your application to make sure there are no errors. We’ll then discuss issues that you may face, like your credit or employment situation. After all of these issues are resolved, we’ll be able to begin submitting your application to many different lenders. After a period of time we’ll receive offers and help you come to a decision about which one of these are right for you.

Don’t Apply Without a Mortgage Broker

You don’t want to waste time and money applying for mortgages without a mortgage broker. But you don’t want just any mortgage broker, you want a Toronto mortgage broker! One close to home that understands our unique financial climate, how much money you’re going to need to refinance or to buy a home; we’ll help you through every step of the process and make sure that the experience goes as smoothly as possible. No one deserves a high interest second mortgage, so let us help you find the one that’s right for you!

To learn more about our great rates on second mortgages, contact us today!

How do Second Mortgages Work?

2nd MortgagesMany of us are taking out a second mortgage to work on our homes or pay off big ticket items; a second mortgage found through a good Toronto mortgage broker can help you get there. You’re going to first need to make sure that this is the kind of financing you need; they’re virtually the same as a home equity loans, and you’ll want to use it to make your life better. There’s no need to get money at 20% interest to pay off a 10% interest credit card bill, so make sure that this is the right choice for you before you proceed.

How do Second Mortgages Work?

Second mortgages work off the equity in your home. Equity is what you really own in your house, as opposed to what the home is valued at. If you have a house that is worth $250,000 but you still owe $100,000 in mortgages, you’ll only have $150,000 in equity stored up. This is what your Toronto mortgage broker will tell you that you can borrow against, but you can only borrow 70% to 80% of this amount. You’ll still hold a portion of your home equity and you won’t have to worry nearly as much about losing your house as you would otherwise.

Who Gives Second Mortgages?

Second mortgages are given by just about any lender, and your best chance is to work with a Toronto mortgage broker to see if you can find someone who will give you the best rate. Don’t just go back to your original lender to see if they’ll give you a fair deal when you can make many different lenders compete and give you the best rate on your next mortgage.

Banks are conventional mortgage lenders, while private mortgage lenders like lending companies offer private mortgages. They both will lend to anyone who has equity in your home, but they can both be geared towards people in different ways. Private lenders will be friendlier with people who have bad credit, while conventional mortgage lenders will be geared more towards people who have better credit. It will really just depend on who you’re working with and what kind of credit you have.

What Makes a Second Mortgage a Good Mortgage?

Finding the right second mortgage means knowing what you need out of one. You’ll want to speak with a Toronto mortgage broker and see what’s out there for you. You’ll want to first know what you want to spend your home equity loan on. Should you pay off your debts, should you pay for your children’s education funds? What are you going to do with the money, and how much do you need? You don’t want to borrow extra just because it’s available, but you don’t want to pass up what you need because you’re not sure what you need. Speak with a Toronto mortgage broker to make sure that you’re getting what you need and what’s right for you, not what’s right for the lender.

To learn more about our great rates on second mrotgages, click here:

Are Second Mortgages Hard to Get?

While financing your home you’ll be able to find many different options and here we’re going to talk about second mortgages. You shouldn’t have to take out a home equity loan if you can take out a second mortgage, and just because your credit isn’t the best doesn’t mean you can’t get one. Here we’re going to talk about how difficult it can be to get one, how to use a mortgage broker to get the most out of your terms and what to use it for.

What Affects Your Chances to Get a Second Mortgage?

There are three things that will count against or for you when you’re trying to get a second mortgage:

FICO: Your FICO or credit score is one of the main indicators of what kind of borrower you are. This means that you’re going to need a good credit score to get a second mortgage. If you have anything below 600 you’re going to want to consider credit repair or credit building before you apply. You may be able to get your financing but it could be at terms that just don’t fit with what you need.

Income: Your income is important to making sure that you can repay your loan. If you’re self or seasonally employed you’re going to need a Toronto mortgage broker to help you get the best mortgage possible. We’ll help you get it right the first time!

Borrowing History: If you’ve borrowed against your home before (this is technically your fifth mortgage for example), recently or if you’ve had slow pays and no pays on your record you’ll definitely want to make sure that you get a mortgage broker on your side to get the right terms.

Why Are Mortgages Hard to Get in the First Place?

Mortgages, and most financing for that matter, can be hard to get. Lenders don’t want to take a risk that they won’t be able to stretch out the life of the loan and get a lot of interest back over time. They don’t like lending to people who pay off their debts quickly, and they don’t want to lend to people who pay off their debts so slowly it doesn’t make a dent. Most of us fall more towards one side or the other and it can be hard to get a second mortgage. This is when you need to think about getting to work with one of our Toronto mortgage brokers.

What Does a Mortgage Broker Do?

Mortgage brokers will not only help you get a good second mortgage, but they’ll help you look over everything that you can do to improve your credit and help you know if now is the time to borrow. Everyone has their own unique situation, and we know that there are no “one size fits all” solutions with financing. Why work with one lender when you can work with several different ones that will compete to give you the best deal? 

Let us help you find the right loan, at the right rate and help you save money!

How to Save Money On Your Second Mortgage

Saving money on your second mortgage means finding a good Toronto mortgage broker; you’ll need a skilled negotiator on your side to make sure you’re making the most of your second mortgage. If you want to save money, you need to know how mortgages work. Here we’re going to talk about why you need to find a good deal, how to find a good deal and how to make sure that it’s also the right deal. This means understanding how they work and why one is right for you. Let’s get started and peek behind the curtain!

Why are Second Mortgages More Expensive?

Second mortgages on average cost more than a comparable first mortgage. This is because the mortgager, or the lender, is taking a big risk hoping that they will be able to recover the money down the line. You could end up defaulting on your first mortgage and then they may never be able to get their money back. You’ll want to talk to your Toronto mortgage broker before you borrow any money from a lender. They’ll be able to help you figure out if a lender is giving you the best deal or not.

What Can You Use a Second Mortgage For?

Second mortgages can be used for all kinds of things, but you’ll want to make sure that you’re using it for the right reason. Debt consolidation can go a long way towards making sure you can save money over the long run. You’ll want to save as much in interest as you can before you sign on for a loan. You can also put the money towards any credit cards or even your first mortgage if you want to save on interest.

Another common thing people use these for is reinvesting in their home’s equity. You’ll be able to upgrade your home and then get more money out of it when you sell it. You can use it for whatever you like, but make sure it’s a real investment like education or upgrading your home. If you put it towards your debt, make sure that your existing debt’s interest rate is higher than the new one you would take on. There’s no sense in getting a loan at 20% to pay off a 10% debt.

How to Get the Right Second Mortgage

You’ll want to first talk with a Toronto mortgage broker. They’ll be able to help you find the right mortgage for you; from private lenders to conventional ones you’ll need to know which one is the right one for you. They’ll talk to many different lenders on your behalf, finding out which one is the one that will work best with your goals. You’ll have to think about who is going to give you the best interest rate, the best mortgage terms and the best deal overall. Without a Toronto mortgage broker you can have your work cut out for you, so make sure you consult a professional first before you get started! To learn more about our great rates on second mortgages, click here!

Do You Need a Canada Mortgage Broker for Second Mortgages?

2nd mortgageWhen most of us think of working with the Canada mortgage broker, we think about getting our first mortgage or buying a house for the first time. But did you know that a mortgage broker can help you renew your mortgage, renegotiate, or help you find the best rate for your second mortgage or home equity loan? It’s true! It’s important to make sure that you are always getting the best deal; after all, a percentage point of interest can rack up to tens of thousands of dollars over the life of your mortgage.

Have Someone in Your Corner

Having a friend in the mortgage business is invaluable. Even people who’ve been in the industry for years still don’t know everything there is to know about mortgages – much less stay up on all the latest trends. Having that support network there for you, that safety net, is going to help save you time, money and sanity. We’ll help you compare different mortgage lenders make sure that you save the most possible. Always work with a Canada mortgage broker like us to make sure you’re getting the most from your mortgage.

You Don’t Pay Us!

With the most important things you should know about Toronto mortgage brokers is that you don’t pay us. We’re paid out of the closing costs of the mortgage, a finder’s fee if you will. This means that no matter what, as long as we do our job and find the best rate, we get paid. We don’t take kickbacks from the lenders to choose them, we work for you – we’re not loan officers, and we’re not here to judge. If you need help, that’s what we’re here for.

Compare and Save

When you compare different lenders, you save. Lenders always give their newest customers the best deals, so if you’ve been doing business with the same lender for a while, they have zero incentive to give you the best deal. If you want to be able to save big bucks it’s time to start looking at other lenders is an option. Customer loyalty is important of course! But why stay true to a lender that’s not giving you the best deal? We can negotiate with your current lender, a new lender, or anything in between to make sure you’re getting the best rate possible. Just because it’s a second mortgage doesn’t mean you have to get some return business.

We’ll Help You Understand Everything You Need to Know

Like mentioned earlier, second mortgages, first mortgages, any kind of mortgage can be difficult to understand. You need that extra help to make sure that you’re making the most of your next loan. Don’t get stuck with a bad second mortgage just because you didn’t know any better! Matter what kind of mortgage or trying to get, will be there through every step of the process. We’ll help you understand introductory rates, balloon payments, and everything else that can make your life miserable when trying to find the right mortgage. Don’t get stuck in a rut, let us help.

Second Mortgages: What You Need to Know

2nd mortgagesBefore you start looking at home equity loans, or Canadian second mortgages, there are some things you need to know. When you choose us as your Toronto mortgage broker we’ll be able to help you understand everything you need to know – but until then, we’re going to go over some super important points here. From understanding the differences between a home equity line of credit and a second mortgage, to what you can expect from your terms when you shop on your own, we’ll cover it all here. Let’s get started!

What is a Second Mortgage?

A second mortgage and allows you to turn the equity in your home into cash you can use – remodel your home, buy a car, pay for your kids Uni courses, just make sure that whatever you’re using it on will give you some sort of return. A second mortgage is not free money and you’ll want to be very careful about how you spend it. Working with one of our Canada mortgage brokers, you’ll be able to figure out what’s right for you. You may not even need a second mortgage – you might just need to refinance your first one.

What is a Home Equity Line of Credit?

A home equity line of credit is different from a second mortgage, instead of getting one big lump sum payment like you would with a second mortgage you’ll get a line of credit instead. You’ll have a special checkbook or credit card to draw on your home’s equity. You’ll still want to keep careful track of everything, just like you did with your checking account or credit cards. It can be easy to lose track so make sure you make the effort!

How Much Equity do You Have?

But before you choose between these two forms of equity loans, you’re going to need to figure out how much equity you have in your home. Start by looking at the latest appraised value of your home. From here, you’ll need to subtract any liens or mortgages you have against the property – after that you’ll know how much equity you have. But the fun doesn’t stop here!

You can only borrow up to 80% of your available equity, but no one ever wants to borrow this much of their equity! You’ll need to be very careful of borrowing against your home – you never know when you’re getting the wrong end of the stick.

So, Which One is Right for You?

Figuring out which one is the right one for you can be difficult – and that’s why you should work with us! When you work with us, you’ll work with some of the best Toronto mortgage brokers around. We’ll help you figure out how much equity you have, how much you can borrow, and if now is the right time to borrow. After all, it takes years to get as much equity as you have, you need all the facts to make the best decision for you.

Visit our second mortgage page today, to learn more about how we can help you:

How to Choose the Right Mortgage for You

2nd mortgageNo one wants to pick the worst mortgage, but what do you need to consider when you’re looking at second mortgages, and mortgages in general? As Toronto mortgage brokers we know that there are many traps that people can fall into when they’re trying to find the mortgage that’s right – and when you don’t know what they are you can easily end up paying a lot more than you should have to. Here we’re going to go over what you need to know, so let’s get started.

What Term is Right for You?

Mortgage terms aren’t exactly what you might think, it’s not what you’re paying each month, but actually the length of time you have to repay the loan. Think of it like the ticking time bomb; can you disarm it quickly or do you need a lot of time to pay it off? Things like that can put a serious crimp in how long and how much you’re going to have to put into your second mortgage or your first one, so be careful!

Thinking Ahead Saves You Time and Money

Thinking ahead will help you figure out if this is the right mortgage for you. If you’re just getting a second mortgage to fix up your home so you can sell it in a year, you’re not going to want a 5 year mortgage term – but if you’re not sure if your home is going to sell you may want to. One of our Toronto mortgage brokers will be able to help you anticipate problems down the road.

Fixed or Variable Rate Mortgage?

A fixed rate mortgage is going to be great for people that need to take their time repaying, it’s one of those in for the long haul sort of things – but if you don’t see yourself staying in place or you’re going to repay quickly you may want to look at a variable rate mortgage. You’re not going to want to pay this off slowly either, because once the term comes due you may have a balloon payment to contend with. Again, one of our Canada mortgage brokers will be able to help you figure out which one is right for you.

We’ll Help You Shop Around

Everyone can use a little help shopping around, and we’ll help you understand what your options are. We’ll go to different lenders to make sure you’re getting a great price on a mortgage that fits your current and future financial needs; why deal with a surprise if you don’t have to?

Call Today

From figuring out how much you can spend to how much you’ll spend if you select a specific type of mortgage, we’ll be there through every step of the process to make sure your next mortgage is successful and benefits you first and foremost. Why spend more than you have to when you can get a 2nd mortgage that’s tailored to your needs? Let us help you today!

Are You Ready for a Second Mortgage?

Before you even start planning what you’re going to do with a second mortgage, you need to make sure that you’re ready for one. How much equity do you have in your home? What does your credit look like? Do you have the income to support another lien against your home? These are the kinds of questions lenders will be asking, and so should you! As Canada mortgage brokers we’ve seen it all, and we’ll be able to help make sure that this is the right choice for you. After all, that’s what we’re here for!

What Is a Second Mortgage?

A second mortgage, also known as a home equity loan, allows you to tap into the equity you are you having your home – think of it like raiding the piggy bank without having to break it open. You want to have plenty of equity on hand before you take out a second mortgage; after all, if you’re swimming in debt, the last thing you’re going to want is more debt. If you’re looking for financing solutions but you’re not sure this is right for you give us a call. We’re Toronto mortgage brokers that know how to get you the best deal.

Isn’t a Second Mortgage Risky?

You know what they say, “With great risk comes great reward”; but who wants to risk their home? When it comes down to it you need to know that you’re safe. When you work with us, we’ll make sure that you know that this is the right option for you.

But don’t get us wrong, sometimes the risk is well worth it. If you’re in a good place financially, or have plenty of equity to spare, home equity loans can help you get what you need.

Who is Eligible for a Second Mortgage?

The more equity you have in your home the better. If you’re still paying off your first mortgage, that’s okay; you will need to make sure that you pay off as much of your first mortgage is possible before you consider getting a second mortgage. You don’t look too desperate to lenders – because if you do they’re going to hike your interest rates, give you unfair terms, and make the process very unpleasant in general.

If you’re not sure about your eligibility, call us! We’re here to help you through every step of the mortgage process, if you can’t find the right loan you don’t pay.

Get a Lower Interest Rate

Getting the lowest interest rate possible on your second mortgage is important – the lower your interest rates are the less you’re going to have to pay in the long run. As Canada mortgage brokers, will be able to help you understand if this is a good deal in the long run or the short run. It never hurts to have a little help does it? Visit our 2nd mortgage page today and see how you can save, let us handle the heavy lifting for you.