If you are contemplating taking out a second mortgage, the prospect might seem daunting, but it’s one of the most common borrowing tools and it’s easier than you think. Depending on what you need a second mortgage for, it can benefit you financially and help you improve your current situation.
The main reason many homeowners take out a second mortgage is to consolidate debt. If you are having difficulty paying your credit card debt or any other high interest debts, a second mortgage can help take the pressure off. Instead of making multiple high-interest debt payments, you can ease the strain with one monthly payment at a lower interest rate and at a payment frequency that fits your life.
Some other reasons people take out a second mortgage include:
Paying for a renovation
For many homeowners wanting to make improvements to their home, there can be an unlimited number of items on a ‘wish list’ that they would like to bring to fruition with a second mortgage. Whatever your reason for home improvement, you are adding to your home’s value and you will see an ROI on most projects. A second mortgage is a perfect opportunity for homeowners in Ontario to use their earned equity to increase their home’s profit.
Fix an urgent home repair:
When there’s a leak in the foundation or a pipe bursts, you don’t have time to find the emergency funding you need. The most pressing issue is dealing with the problem, and not dealing with complicated funding from an institution that doesn’t realize the urgency of your situation. When you work with an experienced mortgage lender in Ontario, you can gain access to the funds you need FAST. Unlike dealing with the bank, a mortgage broker can work with you to secure fast funding regardless of your income or credit history.
Invest In Education
Do you need to fund post-secondary education for your children? Or do you want to upgrade your own education and go back to school? By taking out a second mortgage means you can invest your time and energy into your families’ educational future. Since the loan comes with a lower interest rate than a line of credit or credit card, it makes sense to choose a second mortgage.
Purchase An Investment Property
With the rising rate of home values, there has never been a better time to invest in a second property, vacation property or investment property. It’s a perfect opportunity to build your investments and create a solid financial future both now and in the future.
If you feel that you can benefit from a second mortgage, the team at Burke Financial can help you find the best option that will work for you and meet your financial needs for both the short-term and the long-term. Call us today to book a Discovery Session and find out what could be available to you.
