Second Mortgage Toronto
If you need extra many to pay for unexpected expenses or big-ticket items, a Second Mortgage Toronto may be the perfect fit for you!
What is a Second Mortgage?
A second mortgage is essentially an additional mortgage that is taken out on the same property as the original mortgage. Instead of replacing the original mortgage with a new one, like with the process of refinancing, the borrower obtains a second loan that becomes subordinate to the first one.
Once the second mortgage is obtained, the borrower will have two home loans at the same time that must both be paid off. This does not mean that the two mortgages have to be identical.
In fact, in most cases, the second mortgage is much smaller than the original mortgage because there is a much greater risk to lenders with the second loan. This is because the new loan will come second to the original mortgage, which means that, should the borrower be unable to pay back the loans and they go into default, the original mortgage will be paid back first.
What Do Second Mortgage Toronto Lenders Look For?
When a borrower wants to obtain a second mortgage, they will typically need to provide the Second Mortgage Toronto lender with information or documentation that demonstrates that a significant amount of equity has been built up through the original mortgage. Similarly to an original mortgage, the Second Mortgage Toronto lender will also consider that borrower’s debt to income ratio, their credit score and their employment history.
Why Would I Need a Second Mortgage?
Life happens! We don’t always have the time to prepare for unexpected bills for things like hospital stays or home repairs. And big-ticket items like vehicles or college tuition are hard to save up for.
At the end of the day, the Second Mortgage Toronto lender may ask you what you plan to use the additional funds for, but the decision about how the money gets spent is completely up to you.
As you can see, there are a number of different reasons to obtain a second mortgage and if this is something you have been considering, you have come to the right place! Give me a call today to find out more about your financing options around a Second Mortgage Toronto !
Toronto Mortgage Broker – Rumy Gill
Tel: (647) 464-3939
Brokerage Lic# 10428