What is a Second Mortgage?
Most homeowners will require a mortgage to pay for their home. In many instances, a first mortgage is necessary for anyone to be able to afford the purchase of a home or condo. In certain instances, a second mortgage may be required by those who need to make cash and capital available to put towards other expenses. Second mortgages come second in line to first mortgages in terms of hierarchy. Rather than refinancing a first mortgage and replace it with a higher mortgage, a homeowner may choose to take out a smaller second mortgage instead. The second mortgage is generally recorded as a lien against the home.
Why Apply for a Second Mortgage?
There are many reasons why a homeowner may choose to apply for a second mortgage in Canada. One of the biggest reasons is perhaps the interest rate and repayment schedule is more favourable on a second mortgage, as opposed to refinancing an existing first mortgage into a larger loan. It is certainly better than using credit cards or unsecured debt at high rates. Taking out a second mortgage can help to reduce the overall interest rate paid on the outstanding principal owed on a home.
Other common reasons for applying for a second mortgage include:
- Making cash available for home improvements
- Making cash available for educational requirements for children
- Consolidating debt
- Making capital available to buy another property
- Developing a home equity line of credit
Obtaining a Second Mortgage
When it comes to obtaining a second mortgage, if will probably cost you more to go to your bank around the corner. One of your best bets is to use an independent mortgage broker to help you shop around for the lowest interest rate possible, and the best mortgage package suitable for you across all Canadian lenders. They work for you, not the bank, so can give you unbiased advice – and it is free!
Call the Experts in Home Mortgages
Whatever your reason may be to apply for a second mortgage, you need to rely on the experts in the field of mortgages. Jim Black, a professional independent mortgage broker, and his award winning team will be able to work closely with you to get you the second mortgage in Alberta that you need to suit your specific situation. He’ll also be able to shop around on your behalf to ensure that you get the best rate possible, as well as the best conditions for your financial position. Call Jim Black and his team of experts today at (877) 394-9422, and get the second mortgage you require to free up the cash you need today!