Top 3 Reasons Why You Should Consider A Second Mortgage On Your Investment

If you want to realize the real worth built up in your property, then you should realize that going for a second mortgage is an excellent way to achieve that. With a second mortgage, you have the ability to translate the paper value of your home into a real bank balance.

Instead of letting that value get tied to your home equity, you can decide to be more prudent and use the funds generated for other investments or in any other way you see fit. Here are some of the reasons, which make considering a second mortgage on your investment a good option:

Use the money as you see fit

One of the benefits you will reap from the second mortgage is that you will have unrestricted use of the money and you will be free to use it as you please. It gives you the flexibility to channel the money towards business opportunities, debt clearance, home renovations and much more. This is far better than letting your home equity simply appear as a number on paper.

It won’t interfere with your first mortgage

Most Canadians are afraid of refinancing their loans since interest keeps going up. But this is denying them a chance to cash in on the value of their homes. Consequently, by going for a second mortgage, you will still have access to the low monthly installments of the first mortgage, while at the same time, having the ability to tap into the true value of your property.

2^nd mortgages are easy to obtain

Personal financial problems are the greatest obstacles standing in the way for those who would like to refinance their mortgages in Canada. A 2^nd mortgage depends more on your property’s equity and not on your current financial situation. As such, they are readily approved compared to a standard loan or refinancing. Additionally, there is fierce competition amongst the financial institutions, to offer such facilities, and this has led to relatively low rates on second mortgages.