SECOND MORTGAGE MISSISSAUGA

A second mortgage in Mississauga, and how does it work?

As the name suggests, a second mortgage is an additional home loan that you can get from a lender on top of your existing mortgage. You might be wondering if you are already making a scheduled loan payment for an existing mortgage, how on earth will you be able to make monthly payments for a second mortgage? Well, it is simple, when one pays back the monthly amount, they gain equity in their property which can be used to purchase a second mortgage. All that is needed from you is to put your house as collateral.

SECOND MORTGAGE MISSISSAUGA

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Second mortgage options for customers throughout Mississauga

When applying for a second mortgage, you might want to consider paying off your primary mortgage. A second mortgage is not a bad idea and it can be very useful if you need some emergency funds. You can contact our top advisor at Harpreet Puri Mortgage Agent for a second mortgage in Mississauga. We will ensure your application is processed as swiftly as possible. Please do not hesitate to reach out to our team today to schedule an initial consultation.

How does a second mortgage work?

A second mortgage is an addition to the first mortgage. If the borrower defaults, the first mortgage will get top priority in terms of repayment. Only after the borrower has repaid the first mortgage entirely from the sale proceeds the second mortgage lender will be able to recover the loan amount. A mortgage is generally taken out against the equity in your home, and there are no exceptions. The lender usually offers the loan amount based on the equity built up in your home. Additionally, interest rates on a second mortgage are much higher than on a primary mortgage. It is because the lender of a second mortgage is taking a significant risk if the borrower defaults.

Our mortgage agents at Harpreet Puri Mortgage Agent have years of experience in obtaining the right second mortgage product, depending on your financial situation. 

How to qualify for a second mortgage in Mississauga?

A second mortgage is like any other loan; you must qualify before your application gets approved. 

Below-mentioned is details of what lenders consider:

You will need to submit your primary mortgage details so that the second mortgage lender can determine how much equity you have.

A second mortgage lender will request to see if you have a steady source of income. This could either be in employment history or recent pay stubs.

Lenders will look at your credit history during the loan qualification process. It is of significant advantage if you have a higher credit score.

You will need to carry out an appraisal to determine the property’s current value.

Reasons to choose a second mortgage

Quick turnaround

If you require funds instantly because you need to make a downpayment for your dream vacation home, a second mortgage is a fantastic option as the turnaround time for loan approval is quick. Or even you are considering attending college and require money immediately to take care of the education costs. A second mortgage offers financial freedom in situations where you need instant funds. They are easy to approve and can take as few days instead of weeks or months like some conventional loans. Many individuals in Mississauga benefit from this type of loan every day.

Not a problem even if your credit score is bad

One of the benefits of applying for a second mortgage is that even if your credit score is poor, it is not a problem/ Many private mortgage lenders value the location, condition, value, and marketability of the house since their focus is more on asset-based lending. You can also get a second mortgage much faster than a mortgage from a traditional lender, as the application process and rules are much more lenient.
Banks and other traditional lenders operate under strict guidelines that do not apply to private lenders. This is one of the main reasons banks disqualify borrowers and reject their mortgage applications. A second mortgage agent keeps in mind the borrower’s needs and identifies suitable lenders based on their requirements.

Interest rates lower than unsecured loans

One of the main benefits of a second mortgage loan is that interest rates are lower when compared to unsecured loans. If you have purchased an unsecured loan from your credit card or even a bank, you know that the interest rate is high. Many of these lenders keep the interest rates on unsecured loans high, and it becomes difficult for borrowers to fall behind on these loans. A second mortgage aims to pay it off at some point or refinance them when the first mortgage comes up for renewal. The reason behind this is most lenders do not want to sit on the same loans for more than a year or two.

Pay off your debt

A loan can sometimes be a necessary evil, but if used wisely, it can be a vital financial tool that can help you get ahead of your finances. A student loan, for instance, can help a student get an education that they can benefit from.
The same could be said for an individual taking out a car loan. Their interest rates and fees for any payments potentially missed can impact their credit score down the lane. A second mortgage loan can club together high-interest debts into much smaller, manageable monthly payments.

Schedule an appointment with Harpreet Puri Mortgage Agent today!

If you want to apply for a second mortgage in the Mississauga area or schedule an appointment with our Mortgage Agent to find out more information about our complete mortgage services, please do not hesitate to contact a member of our team today. We will be more than happy to assist you with any queries that you may have. For further inquiries or to request a free, no-obligation estimate, please do not hesitate to contact us at +1 416-543-9000 today for a free consultation  & quick approvals.