Second Mortgage in Kitchener
If you are a homeowner in Kitchener and you are looking to borrow money, one of the ways that you may do so is through a second mortgage. A second mortgage is simply another term for a loan that is secured using your home equity. It is paid off through regular bi-weekly or monthly payments just like a first mortgage would be and you do not have to break your first mortgage in order to get a second mortgage.
Why should you choose a second mortgage in Kitchener?
Second mortgages have a number of advantages over other types of loans. Because it is a type of secured loan, you can typically get a much better interest rate over other types of loans such as credit cards or personal lines of credit. Also, because most lenders will allow you to borrow up to 80% of your home equity, a second mortgage can be an excellent choice when you need to borrow a large sum of money.
Reasons why Kitchener homeowners choose to get second mortgages include consolidating high interest debt, paying for home renovations, and financing a new business. But really, once you are approved for the loan, you may use the funds for any purpose you choose.
How to get the best rates for second mortgages:
To get the best rates on a second mortgage, you should contact your mortgage broker. Mortgage brokers work with dozens of lenders and they will be able to compare offerings in order to get the best rate for your circumstances.
The better your credit is, the better rate that your mortgage broker will be able to secure for you, but even if your credit is poor, your broker can usually still get you a better rate than you would be able to get on your own.
How to get a second mortgage even with bad credit:
As mentioned, you will be able to get a better rate if you have good credit, but bad credit won’t necessarily stop you from getting a second mortgage. There are many alternative and private lenders out there that specialize in working with those with bad credit.
And by going through your mortgage broker, you can be matched with the lender that is most appropriate for your situation.
Advantages of using a mortgage broker for a second mortgage.
Working with a mortgage broker to obtain your second mortgage has a number of advantages over trying to do it alone. Advantages include:
- Your mortgage broker can help you determine if a second mortgage is the right choice for you (as opposed to other options like refinancing or a home equity line of credit).
- Your mortgage broker can compare offerings of various lenders and help you get the best possible rate.
- Your mortgage broker can help you by making sure your application is complete and accurate.
- Your mortgage broker can coach you throughout the process and make sure any questions you have are answered.
Contact us today!
Would you like to learn more about getting a second mortgage in Kitchener? If so contact us today to speak with one of our brokers.