Taking out home equity loans, or a second mortgage may seem like a daunting task for any homeowner to consider. Many people are under the assumption that second mortgages tend to have higher interest rates than a home equity line of credit. However, this is not always the case. Depending on the loan amount, there are many scenarios where a second mortgage on your property is the most sensical decision. It truly just depends on the lender.
Here at Circle Mortgage Group, we specialize in preferred second mortgage rates. Our mortgage brokers will work with you to determine the best course of action in the financing of your home. When you choose us, you will be choosing a mortgage provider that operates on trust, transparency and honesty. Call us today to learn more about how our services can help you, your home and your family.
Circle Mortgage Group is a mortgage brokerage established by Jivan Sanghera. With twenty years of experience in the industry, Jivan has been awarded for her commitment and dedication to her clients. Our brokerage proudly serves clients all over Canada, both virtually and in our Burlington, Ontario office.
We understand that second mortgages aren't cause for celebration. Whether it's for debt consolidation, refinancing for a child's wedding, or simply just planning to move out on your own for the first time, another mortgage on top of an existing mortgage can seem stressful.
But that's why we're here. We want to help Canadians make informed decisions. We will provide you with all the lender information you need when undertaking this type of loan. We want the absolute best solutions for our clients, their home and their family, so trust our mortgage broker to give you the right advice and help you need.
As you pay off your primary mortgage payments, the equity in your home naturally builds us. Equity is the value of your property minus what you owe on it. So for example, if your home is worth $500,000 and you still owe $200,000 on it, then you have $300,000 in home equity. There are several financial tools available to Burlington, homeowners in Canada, that allow them to borrow against their home equity. One of those tools is a second mortgage. A second mortgage is simply a loan that uses her home as collateral. Like the first mortgage, you would make monthly payments.
It does not require you to break your first mortgage. Most banks and private lenders will let you borrow up to 80% of the value of your home equity. So using the example above, if your home equity is $300,000, then you would be able to borrow up to $240,000 with a second mortgage. Call us to learn more about how a second mortgage can help consolidate credit card debt or refinance your property.
While it is possible to apply for a second mortgage through your bank or credit union, these institutions are restricted to selling their own products. That means there is little to no incentive for them to offer you the most competitive rate. At Circle Mortgage Group, we work with all the major lenders in Canada, including banks and credit unions as well as several others. Some of these lenders can actually only be accessed by working with a broker such as ourselves. With more mortgage lenders to choose from, there is more competition to attract and retain your business. When you work with us, you can rest assured we will work to with you to obtain the best interest rate for your home.