The COVID-19 crisis has caused significant economic hardship for people throughout Mississauga. And while the government is doing its best to offer relief, many people will not qualify and those who do may have a long wait before they actually see any money because of the overwhelming backlogs that our social services are experiencing right now. If you need help, it may be time to contact your mortgage broker and ask about a second mortgage or any variety of other strategies that we can offer.
If you own a home, you have the ability to borrow against the equity in that home by getting a second mortgage. A second mortgage can help you in a number of areas from consolidating high interest debt, to helping you pay your bills. So, you may be wondering, is now the right time to get a second mortgage in Mississauga.
Let’s begin by explaining what a second mortgage is.
A second mortgage is a loan that you take out against the equity in your home. Most lenders will allow you to borrow up to 80% of your home equity. So for argument’s sake, let’s say your home is worth $500,000 and you still owe $300,000 on it. That means your home equity is $200,000 and with a second mortgage you would be able to borrow up to $160,000.
And while a second mortgage does typically come with a higher interest rate than a first mortgage, the rate is still much lower than unsecured loans such as credit card debt.
So, is now the right time to get a second mortgage in Mississauga?
To truly know the answer to that question, you’ll need to examine your financial situation. Cash from a second mortgage can help you if you are in a bind, but you need to make sure that you have the ability to make payments on your second mortgage – otherwise you could be at risk of losing your home.
Consulting with a professional mortgage broker is important. Your broker can help you work out how much money you would be able to borrow with a second mortgage and what your monthly payments would be.
Contact Akal Mortgages today!
If you think that a second mortgage might be the right financial strategy for you right now, we would love to help. Contact Akal Mortgages today to speak with one of our agents in Mississauga.
When we say YES! We stand behind our promise.®™
