Second Mortgage Vancouver, Squamish BC
A second mortgage is a home equity loan that allows homeowners to borrow money from the equity in their home, without refinancing their current mortgage. Equity is the difference between the appraised value of the home and the amount owed on the first mortgage.
A second mortgage is an option to access
Equity from your home to pay off
high interest credit card debt
The most common use of a second mortgage is to pay off high interest credit card debt. With credit card interest rates over 20% making minimum payments to your credit card is not going to bring your balance down. A second mortgage is a good idea even though the interest rate will be higher than your first mortgage you will be paying out the 20% with maybe a second around 7-8%. Thereby reducing your monthly costs immediately.
Another common use is for home renovations. For example, if you are selling your home and require some updating before it goes to the market you can use a second mortgage to finance the renovations and pay it off when the house sells. It is cost effective as you are only paying the interest.
A second may help boost your credit score as it is registered against your home and it reporting to the credit bureau. Making your minimum payment on time is crucial for credit repair.
Consult with Heather to find the
Best second mortgage options tailored to your needs
There are some additional fees associated with a second mortgage. It is best to consult with a mortgage broker in regards to a second mortgage as there are different types of second mortgages.
A second mortgage can be arranged through a traditional lender or it may be that you require a private second mortgage due to your specific situation.