At first, the idea of a second mortgage might not be tempting. You might be thinking that you already have a mortgage on your home and applying for a second mortgage would mean you would have to pay more in total mortgage payments then you are currently paying. However, this is not the whole picture of what getting a second mortgage is all about. In fact what you are not seeing is, by taking up a second mortgage you would be able access immediate cash for whatever you need or just simply be able to pay off high interest debts immediately. High interest debts such as credit card balances, car loans, pay day loan, personal loan and any other high interest debts that you are paying right now will be eliminated. By taking up a second mortgage you would benefit from being able to make a low monthly repayment at a low interest rate, allowing you to save more money every month. At Brampton Mortgage Broker, we offer you a wide range of flexible second mortgage options that you can choose from. You can discuss your requirements with our team and we can advise you on which plan would be perfect for you. Contact us and schedule an appointment today. We look forward to hearing from you.
Let’s talk about second mortgage
Don’t know much about second mortgages? Not to worry, let us fill you in. You should already know that over time as you pay off your primary mortgage, equity builds up on your property. It is an asset of sorts that is directly connected to the market value of your home. You can also increase it by carrying out renovation for your property. The higher your equity value, the more valuable your home is. What a second mortgage does is it allows you to tap into the equity of your home to access money for almost anything you need it for. As you take up a second mortgage, you forfeit a percentage of your home equity (it will be treated as collateral) and as you pay it back, you will get back your equity again. Just like your primary mortgage, you would be paying on a monthly basis. If you are worried about paying high rates of interests, you can rest assure we can help design a plan which is tailored as per your requirements so you can repay your mortgage without facing any type of financial strain. Our team members are always here to help, get in touch today!
Save yourself from any financial crisis during Covid-19
One of the things we know about life is, that it is very uncertain. Right now, the world is going through a crisis. Covid-19 has halted our lives in our tracks. The economy has taken a severe hit and many industries are closing down. In our neighbouring country, the unemployment rate is at an all-time high. If you are amongst the many who are facing a financial crunch right now, a second mortgage can help you get out of that situation. With a second mortgage, you will get access to quick funds which will help you to pay off your bills, bad loans, your primary mortgage, even emergency medical expenses. You won’t need to worry about being late on your payments and paying extra. Just contact our Brampton Mortgage Broker team today and discuss your financial requirements with our team members. We are well-connected to many well-known mortgage lenders across the region and see to it that you get access to your funds as quickly as possible. We will also take care of any paperwork (which is next to none when getting a second mortgage). Call Brampton Mortgage broker today and schedule an appointment today.
Protect your family’s financial future
Being the sole earning person in a family means you take care of the financial aspects of your household. That’s a lot of responsibilities and if somehow you lose your job, if you have been laid off that can spell a financial disaster. Taking up a second mortgage can support you financially in this situation until you get back up on your feet again. You can use the loan amount for regular home expenses while you look for another job.
Here are some more scenarios where applying for a second mortgage is a perfect choice:
- You check your mortgage balance and almost 2- years are remaining but you want to take a break. However, that would mean that you would have to pay a penalty amount. You also may lose the low mortgage rate you have. Taking up a second mortgage can resolve this issue.
- You have missed some of your mortgage payments and now need a lump sum amount to pay off the balance and save your home from foreclosure.
- You suddenly have a family emergency and need quick funds.
- Your bank won’t give you more money because you have already qualified for the maximum mortgage amount.
- You have a bad credit score or history of late or missed payments.
A second mortgage can help you with debt consolidation as well
If you’re making multiple payments of debit card bills, loans, also your primary mortgage, you must have noticed that on all the payments are made on different interest rates. Some of them, generally credit cards are as high as 15-21%. This way, you are spending way more than you need to and by the end of the first week of the month, a large chunk of your paycheque may be gone. Do you really want to continue with that? Well, if you apply for a second mortgage, you won’t have to. You can consolidate all your debts and loans under a second mortgage and re-pay for everything by paying once a month at a low-interest rate. You can pay off the full balance amount in no time. Also, you will be saving on your expenses and you can use that money to start a savings account or invest it on anything, the choice is entirely up to you. For further details, get in touch with us.
What are the qualification criteria for a second mortgage?
Before you can apply for a second mortgage, there are some small things that we need to check before we can go ahead with the transaction. Nothing serious, this only helps in a seamless transaction of the entire process. Have a look at the following points to have a clear understanding of the details you have to provide for a second mortgage
- You will have to provide pay stubs and bank statements. This is to check that if you will be able to pay off your second mortgage.
- We will carry out a credit score check. (A high credit score can mean a low-interest rate)
- We will ask you for a listing of the equity of your property. If you have more equity, the higher the chances of you being qualified for a second mortgage.
- You will have to present proof that your property is worth the amount you want to claim. (This is done by having an appraisal done on your property, not to worry we will order the appraisal for you)
Once you provide us with all the necessary details, we will start with the paperwork and you will be one step closer to getting that second mortgage. Based on the information you would provide, further queries can be raised.
How much would be the mortgage fee?
This would depend on your primary mortgage balance amount, your credit score and a range of other factors. Some fees that are included are the legal fees, appraisal fees, title search fees, and insurance fees. The rate of interest would either be a fixed or a variable rate depending on the plan you are offered by one of our second mortgage lender. Rest assured though, we will offer you one of the best quotes available in the present market. We advise you to keep a high credit score to get a minimum rate of interest. If you have any queries, you can call us right now or book an appointment with us.
How much can I borrow?
As the second mortgage amount depends on the equity in your property, it is generally around 80% of your equity. Let’s take an example to have a better idea. If the market value of your property is $500,000 and your primary mortgage balance amount id $325,000 then your second mortgage can be up to $75,000 depending on your credit score and other factors. That would include questions such as if you are able to make regular payments for your primary mortgage.
Improve your credit score
You must be wondering how taking up a second mortgage can improve your credit score. Let us answer that question. After you get your second mortgage amount, you can clear off all your dues and loans using the lump sum cash. You will be able to make consistent re-payments as well which will eventually help you improve your credit scores. Better credit scores mean, if you are thinking of taking up another loan in the near future, you would be eligible for low-interest rates which makes applying for a second mortgage a sensible choice.
So what are you still waiting for? Contact Brampton Mortgage Broker and apply for a second mortgage today! Take that first step to get yourself out dues and debts. Call us!