Are you a homeowner, maybe with one or more properties under your name? Are you between 25-75 years old, self-employed, or steadily employed, and living in Ontario, Canada? Perhaps your credit score could use a little polishing, or you’re bouncing back from a bankruptcy or a consumer proposal. Whether you’re in the urban heart of Toronto, the quiet suburbs, or amidst Ontario’s picturesque rural landscapes, we’re talking to you.
Have you ever felt backed into a corner by financial circumstances? Ever felt like you’re running out of options and need a solution fast? You’re not alone.
We know the feeling – that silent but heavy pressure of rising debts, interest rates seeming to increase by the minute, the unexpected expenses that hit you right when you’re least prepared. We understand because we’ve spent over a decade helping people just like you. The weight on your shoulders?
We’ve felt it too.
Your struggle? We’ve walked that path and found a way through.
We’ve helped numerous individuals in situations just like yours – people with existing mortgages who are looking for a lifeline, a second chance. If you’re a homeowner with property and are seeking to consolidate debt, buy another property, or simply need cash to settle immediate financial needs, you’ve come to the right place.
We understand your need for flexibility, transparency, and effective solutions that make sense. The fear of rejection due to your credit score, bankruptcy, or consumer proposal? We empathize with that. The desire to leverage your existing property to solve pressing financial needs or secure a better future? We’ve seen it transform lives.
Now, let’s discuss the solution – a second mortgage.
But first, let’s lay out the facts – the pros and cons of getting a second mortgage. It’s a big decision, and as a reliable, empathetic, and empowering mortgage advisor, we believe in the importance of being fully informed.
Show the pros ands cons in a table format, side by side.
Pros of Second Mortgages:
- Access to Large Funds: You can borrow large amounts because the loan is secured by your home.
- Lower Interest Rates: Compared to credit cards and personal loans, second mortgages often have lower interest rates.
- Improved Cash Flow: Consolidating high-interest debts into a single, lower-interest loan can result in lower monthly payments.
- Flexibility: Use the funds however you see fit – be it debt consolidation, home improvements, or investing in a new business.
- Tax Deductions: In some cases, the interest paid on a second mortgage can be tax-deductible.
- Credit Improvement: By paying off other debts and maintaining timely payments on your second mortgage, your credit score can improve over time.
- Easier Approval: Even with bad credit or unconventional income sources, a second mortgage can be easier to obtain than unsecured loans.
- Competitive Rates: With the right broker, you can secure competitive rates that fit your financial goals.
- Diversification: Allows you to invest in other assets, like a business or other properties.
- Settling Debts: Provides an opportunity to settle immediate, high-interest debts, such as CRA debts.
- Shorter Term: Can have shorter terms than a first mortgage, leading to quicker repayment.
- Value Addition: It can provide the funds needed for home improvement projects, which can increase the value of your property.
- Increased Liquidity: It’s a way to access your home equity without selling your house.
- Better Than Selling: It can provide financial relief without needing to sell your property or disrupt your family’s life.
- No Limitations: Second mortgage funds can be used for virtually anything, from education expenses to medical bills.
Cons of Second Mortgages:
- Risk of Foreclosure: If you cannot make the payments, you risk losing your home.
- High Interest: Even though the rates are lower than credit cards, they’re generally higher than the first mortgage.
- Fees: There can be substantial closing costs and fees associated with a second mortgage namely lawyers fee, application fee, lender fee, broker fee, referral fee, appraisal fee and many more.
- Reduced Equity: A second mortgage will reduce the available equity in your home.
- Home Market Fluctuations: If the market value of your home decreases, you might owe more than your home is worth.
- Possible Predatory Lending: Some lenders may target those with a poor credit history for higher fees and interest rates.
- Difficult Approval: For those with poor credit especially with un discharged bankruptcy and consumer proposals or high debt, approval may be difficult.
- Complexity: The process can be complex, especially without a knowledgeable mortgage broker on your side.
- Refinancing Challenges: Having a second mortgage can make it more challenging to refinance your home.
- Interest Accumulation: Over time, interest can accumulate and become a significant debt with the products that allows you to pay the interest at the end of the term.
- Dependent on Home Equity: The amount you can borrow strictly depends on your home’s equity based on an appraised value today.
- Paperwork: The process may require significant documentation and paperwork by the lender based on your situation.
- Additional Debt: It increases the total debt burden and needs to be managed carefully.
- High-Stakes Collateral: The loan is secured against your home, making it high-stakes collateral.
- Tax Implications: In some cases, there can be tax implications with second mortgages.
Our unique second mortgage products stand out because we offer flexibility in repayment options, competitive interest rates, and quicker processing time.
Our second mortgage solutions come with a satisfaction guarantee with the solutions we provide based on your situation and final outcomes. We stay with you before, during and after the funding to help you navigate the mercy waters and dodge pitfalls.
Our lenders don’t just look at your credit score; they take a more comprehensive view of your situation, considering your entire financial story and then carve out a workable solution that fits best for the given situation.
Life is filled with opportunities disguised as challenges. Let’s navigate them together.