What Kinds of Second Mortgages Are There?

There are all kinds of second mortgages, but you’ll need a Toronto mortgage broker like us to know which one is right for you. We deal with most Toronto lenders so we know how to get you the best deal, but we’re Canada mortgage brokers too – don’t pay more than you have to when we can help! Here we’re going to go over all the types of mortgages you can get as part of a home equity loan, and you’ll be able to get the one that’s right for you. Let’s get started!

Always Be Careful with Equity

Something you should always remember is that equity can be hard to recover. This is why it’s so important to work with one of our Toronto mortgage brokers to get the deal that’s right for you. You should never cede any equity that you don’t have to, and you want to get the highest loan to value ratio possible. Banks just won’t’ do this for you on their own, that’s why you need our help! We’ll be able to help you figure out just how much you can afford to borrow and make sure you know how long it’ll take to pay everything back. It’s not just about borrowing; it’s about keeping control on your home.

What is a Home Equity Loan?

This is your standard type of second mortgage that almost everyone gets. You’ll be able to get a lump sum so you’ll be able to pay off all of your debts at once, but you’ll also be borrowing against your home. All second mortgages will borrow from the equity in your home and there is always a risk that you won’t’ be able to pay the money back. You’re going to want to be very careful before you choose any of these for you

What is a Home Equity Line of Credit?

Like a home equity loan you’ll be borrowing money out of the equity in your home, but you will be able to borrow and repay this again and again. You’ll be able to borrow as much as you need, but it’s important to make sure that you’re careful with this kind of borrowing. If you have a minimum balance that you’re supposed to keep going every month for a minimum of 3 years, that’s a lot of interest you’ll be paying in the interim.

What is a Reverse Mortgage?

There is something called a reverse mortgage that allows you to borrow against your home to fund your retirement. With a Toronto mortgage broker like us you’ll be able to get as much as possible out of this mortgage. You’ll use up as much equity as you need and when the time comes the bank or lender will see the house to recoup their expenses. There are all kinds of second mortgages on the market, don’t get short changed! Let us help you get the one that’s right for you.

Homebase Mortgages is a leading Toronto mortgage broker, which specializes in all types of mortgages ranging from home equity loans, second mortgages, private mortgages, mortgage refinancing, home mortgages and hard money lending.

Contact Information

Mike Smith

Marketing Coordinator

HBM

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