Things Canadians must know about Second Mortgages


Being a Canadian homeowner, you’ve probably heard about second mortgages. Second mortgages are money that you can borrow from a lender against in the equity in your home. Despite being so prominent, many Canadians don’t understand them and aren’t able to use second mortgages to their maximum benefits. 



Here are a few things that most Canadians probably don’t know about second mortgages that will help them in making the most of their assets.

·         Second mortgages have different types.
Second mortgages come in different forms. For example, with a revolving HELOC, the borrower gets continuous access to equity as they pay off the principal. Or you can get a closed second mortgage meaning that you will be able to get one lump sum of cash from your equity and pay it down gradually. 

·         Second mortgages are mainly used for two purposes.
Most commonly, second mortgages are used for paying-off high-interest consumer debt or for renovating or upgrading homes. You can save a lot of money by using second mortgages to your maximum benefit. So, if you prefer, you can use the second mortgage to pay off the credit card balance and enjoy reduced interest rates.

·         You keep your home as collateral.
When you take a second mortgage, you use your home as collateral to the lender. This means if you won’t be able to pay off your mortgage, the bank can force you to sell as it can with your first mortgage. In such a case, your interest will also be lower.

To try your hands at the best private second mortgages in Canada, look no further than the official website of RateShop.ca. All you have to do is fill our quick application form and get approved in as little as 24 hours. Visit us to find the get the best mortgage rate for you!
Location: Mississauga, ON, Canada

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