How Do I Get a Second Mortgage? Is It Right for Me?

If you have equity from your home, it may be tempting to cash out with a second mortgage. Many homeowners take out a second mortgage on their properties to access the equity built up in their homes, and they use that money for their children’s education, investing, or even to pay off debt.

What Is a Second Mortgage?

A second mortgage is a second loan that is secured against the equity in your home or first property.

Is a Second Mortgage the Right Choice?

With Canadian home prices rising steadily and interest rates low, a second mortgage is a great way to access equity you’ve built up in your property. However, you should note that with second mortgage, you make payments apart from the payments you’ve been making on the first mortgage. A second mortgage does not replace your first mortgage. Know your options clearly before making the decision.

Top Ways to Refinance with a Second Mortgage

To qualify for a second mortgage, lenders will look at how much equity you have in your home. The more you have available, the better your chances for qualifying for a second mortgage. Here are the ways to refinance for second mortgage: http://www.canadalend.com/Blog/is-a-second-mortgage-right-for-you/