Posted onJanuary 08/2019
If you embrace a philosophy of growth and self-care, you’ll want to, as Oprah Winfrey says, “Live your best life.” Even with mistakes, you’ll know at the end you really did make the best effort for yourself, your partner and, if you have them, your kids, too.
Second Mortgage in Toronto
Sometimes, living your best life isn’t difficult, especially if it means spending time together and enjoying a good meal. But if it’s something that costs money, then you may be looking at securing a loan or getting a second mortgage.
If the value of your property has increased since you bought it, then you have what’s called equity in your home. Getting a second mortgage in Toronto is certainly a viable option. A second mortgage means that you can borrow money based on the value of your property. Your home acts as security against the loan.
What is a Second Mortgage For?
A second mortgage can be used for almost anything. We say “almost” because you do have to tell a lender what you intend to do with the second mortgage on your application. If your answer is something like “Start a business” and you have no experience in business, no business plan, and intend to quit your job, then it’s unlikely that your application will be approved.
People can use a second mortgage for things like home improvements and repairs, tuition fees, or special trips, such as a 30th wedding anniversary luxury cruise. You could also use a second mortgage for healthcare costs or equipment, expensive sporting equipment, or competition travel for your children. Remember, though, that the approval of a second mortgage application is entirely up to the discretion of the loan provider.
Where Do I Start?
When people decide to get a second mortgage, most begin by contacting their bank or their current mortgage provider. This makes sense, and there is a chance that either one will give you a competitive second mortgage, especially if your finances are in good shape.
At Northwood Mortgage, we believe in getting the best deal. So when you begin looking for a second mortgage in Toronto, search widely and get a financial product that suits you and your circumstances—not just what your bank or current lender offer you.
Types of Second Mortgage
There are two main types of second mortgage. The first is a home equity loan and it is, as the name describes, a loan based on the equity in your property. A mortgage broker can help you find this type of loan at a competitive rate with decent monthly repayment figures.
The next type of second mortgage in Toronto is a home equity line of credit. It functions a bit like a credit card in that you can use this line of credit to pay for things, but the interest rate may vary each month on the balance. In other words, it is a variable interest loan, secured on the equity in your property. A home equity line of credit works well if you have smaller things to pay for over a period of time.
Northwood Mortgage Can Advise and Help
The amount you borrow on a second mortgage should be what you can afford to comfortably repay each month.
Northwood Mortgage specializes in second mortgages for people just like you. Contact us today for a free consultation. We’ll discuss your circumstances and options for your second mortgage!