Currently, as Canada’s sixth largest real estate market, Mississauga is a diverse city with well-known neighbourhoods, transit, shopping centers and attractions. Even as prices have continued to increase, there has been an influx in sales activity making the need for second mortgages quite popular among residents of the city. For Mississauga residents, some of the most common purposes of a second mortgage include; renovating as a strategy to sell, additional financing to help close their purchase, and unexpected expenses that need to be cleared/consolidated.
What is a Second Mortgage?
A second mortgage is a mortgage registered behind an already existing mortgage (first mortgage) by either the same or a different lending institution. A second mortgage can be provided by a well-known bank/lending institution, or in more complex situations, through a private lender in Mississauga. Since a second mortgage counts as anything collaterally registered in second position, this can include both Home Equity Line of Credit and Fixed Second Mortgages. In almost all cases, a second mortgage is the quickest and easiest way for Mississauga residents to obtain equity from their homes, regardless of the reason. Second mortgages can are often much more favorable than borrowing money or carrying balances from expensive, unsecured sources.
A resident of Mississauga who owns their home had approximately $300,000 in available equity. Their bank refused to give them additional money and their credit was suffering due to high interest credit card debt, lack of cash flow and there was the imminent threat of a lien from CRA for personal tax arrears. From the second mortgage of $100,000 which we arranged for them, they were able to pay off all debt (including a car loan), clear the CRA arrears and increase cash flow by close to $800/month.
What’s the Process?
A detailed conversation is a great first step! We’re always open to having an open discussion about your second mortgage needs so we can provide feedback with transparency on maximum loan size, costs, timeline, term & conditions, etc. If you feel comfortable, we would have you fill out a simple mortgage application and begin seeking out an approval from a lengthy list of lenders we work with for the Mississauga area. We’ll also provide great advice and suggestions on how to make monthly payments easier on your wallet, the advantages a second mortgage offers for repairing credit and how to eventually pay off the second mortgage. Approvals are quick, usually within the first 24 hours and closings can happen within the first 72 hours if necessary.
Ready to Apply?
If you’re a resident of Mississauga and are interested in learning more about second mortgages, we’re always happy to make the time for you. We love working with homeowners in Mississauga and it’s earned us the recognition of 2017’s Best Mortgage Broker in Mississauga as published in the Mississauga news! Second mortgages are made to be easy, but it also needs to be done through a trusted source so call us today for guidance – (905) 455-5005.