A second mortgage is exactly as the name implies. It is a mortgage added on to the mortgage you already have. For example, if you have a mortgage right now with a bank, then that mortgage would be a ‘first mortgage’. If you needed let’s say another $50,000, then you can take out a ‘second mortgage’ based on your homes equity.
Second mortgages can be obtained regardless of whether you have bad credit, good credit, or no credit. They can be obtained with a past bankruptcy, consumer proposal, tax arrears, etc. Qualification is typically based on the amount of equity you have in your home (the difference between what you owe on the home and the homes current market value), as well as the homes location and overall condition.
There are a number of reasons why people take out second mortgages:
– Debt consolidation
– Pay tax arrears
– College tuition
– Home renovations
– Finance a special event, a wedding for example.
– Fund the start of a new business
Call or email me today to find out if a second mortgage may be right for you!