5 Reasons Second Mortgages Make Sense
Are you in need of funds to buy your dream house? Or looking to pay for your children’s post-secondary education? If you have equity available in your home, the best option is to take out a second mortgage. A second mortgage is a type of mortgage which is taken out by the borrower while their original mortgage is still in effect. There are usually backed against their homes or other real estate property. You can refinance up to 85% of your property’s value with a second mortgage. A second mortgage can help you meet a host of financial goals and objectives. Below mentioned are five reasons why a second mortgage makes sense.
Ideal for investment purposes
Usually for one to make money, they need to invest money. Taking out a second mortgage does a whole lot of good to your investment portfolio. An RRSP loan allows on to maximize your contribution and give you a sizeable return. With a second mortgage, you can pay off the loan in easy-to-make monthly installments.
To purchase a second house
One of the more popular reasons for people to take out a second mortgage is to fund the down payment for an income or vacation property. Traditional banks usually require 20% for the purchase of a second property. If you want to quickly fund the down payment, you can borrow against the real estate you already own like other rental properties and your primary residence.
To renovate your property
The elements of nature can cause a lot of wear and tear to your house. If you have discovered that your roof is leaking or the interiors of your living room need a new paint job to liven up the space, then taking out a second mortgage for home renovations is the best alternative to access a large sum of money. A second mortgage gives one the opportunity to access their home’s equity and get the job done.
Are you fed up with your current job? In need of a career change? Or are you looking to pursue higher education? If you are able to qualify for a loan and meet your monthly payments, a second mortgage is the best option to fund your dream of going back to school. Additionally, it can also be used to pay for your children’s post-secondary education. Going back to school can help you land a better-paying job, it is a great investment.
To help pay off your high-interest debt
If you are paying close to 15, 20 or 30% interest on your credit cards, a second mortgage can help improve your finances. Your interest payments will get low which can help you work your way out of debt.
To find out more information about second mortgages, please do not hesitate to reach out to our team at 1ONEFUND to speak to our qualified mortgage agent. We will be more than happy to address any queries and provide you with a free, no-obligation estimate.