What Is A Second Mortgage?

With a second mortgage, it’s now easier to obtain additional funds by using available equity on your property without making any significant changes to your finances. A second mortgage lets you borrow more while keeping your current conventional mortgage with its low-interest rate. You will continue making payments on the first mortgage while also making payments on the second. Mortgage loans can be used to enhance your current lifestyle, such as a loan for your wedding, a new car, or even to take a vacation. Some use Second Mortgages to consolidate debt or pay medical bills, education or school loans, and most commonly, a home renovation loan. If you are looking for Second Mortgages Surrey. Contact Us

At Crown Funding, our guiding vision is to provide our clients with some cost-effective ways to access funds with the lowest mortgage interest rates in the market. We’ll provide you with a dedicated mortgage broker to walk you through the entire process. To obtain the best mortgage rates in Surrey, it is vital to contact a mortgage broker or agent in Surrey to assess your circumstances. We offer a diverse range of home loan products and services. Crown Funding takes a personalized approach while listening to our customer’s needs and make the mortgage process more straightforward for them. That’s how we do business, and that’s what we mean when we talk about Individual Successes.

What Are Some Benefits of A Second Mortgage

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Home Renovations

A common expense for every homeowner is making renovations to their home. These home improvements and repairs to the property can be expensive and, at times, require secondary financing. In most instances, a second mortgage on the property makes good sense, as a second mortgage can be used to fund these expenses at a lower cost compared to other loan products.

Debt Consolidation

A mortgage loan can help many people pay off high-interest credit card debt that negatively affects most people. With mortgage interest rates being generally much lower than the typical credit card, you can easily save thousands of dollars in interest and reduce your monthly payment by up to 50% of what you are currently paying.

Investment Purposes

Many Canadians invest in real estate and businesses and need funds to facilitate these transactions. A secondary mortgage on the home can prove a viable solution in providing you with immediate funds.

Some Tips Before Getting a Second Mortgage

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Ensure equity in your home

Lenders will not extend credit against a property with a tiny owner’s equity. A homeowner needs to have at least 20 percent equity in their home, meaning their remaining mortgage should make up no more than 80 percent of the home’s total value.

Have a plan

Even before you visit a lender’ office, know how much you need to borrow and if you need a one-time loan or an option where you can borrow multiple times. If you want to consolidate debt, a lump-sum equity loan would be a better option. If you plan to renovate your home over some years, HELOC will suit your needs.

Check your credit scores before applying for a loan

It’s a smart step to check all your credit reports before applying for any financing. If your credit score needs improvement, take the steps required to try and improve it. Paying off your credit card debt is a great place to start. Our experts say that a score in the mid-to-high-700s will generally qualify consumers for the best rates.

Shop around

A local bank is an excellent place to start. Just make sure to get quotes from various lenders and compare them in detail. Never plan to go with the first lender who’s willing to provide you a loan. In addition to comparing APRs, fees, and repayment terms, try to look for reliable lenders who have demonstrated previous experience and good customer satisfaction ratings.