How can you use the money from a second mortgage?
Matrix Mortgage Global: How can you use the money from a second mortgage?
If you are looking to borrow a large sum of money and you have built up equity in your home, one of the most convenient types of loans available is a second mortgage. Cash obtained through a second mortgage may be used however the borrower chooses, but there are some uses that seem to be especially popular.
Let’s take a look at some of the main reasons why people take out a second mortgage.
- To pay off high-interest debt.
If you have a lot of high-interest consumer debt, then you may be able to consolidate it and pay it off faster if you use a second mortgage. If you can save sufficient interest, you will not only be able to pay off your debt more quickly, but you might even be able to lower your overall payments. Just remember, however, that this strategy will only work if you do not go back into debt.
- To pay for a major home repair or renovation.
If you have a major home repair such as a roof that needs replacing or if you finally want to renovate an outdated kitchen, using the money from a second mortgage can be a good way to pay for it. It is an especially good strategy if you will be increasing the value of your home in the process.
- To invest.
Maybe you are looking to start a business. Or maybe you are looking to top up your RRSP and lower next year’s income tax bill. A second mortgage can help you do this. Just keep in mind that it is probably best not to invest in anything too risky as this could mean you are gambling with your home.
- To pay for emergency expenses.
If you need money in a hurry to pay for an emergency expense such as a car repair or medical bills, then getting a second mortgage can be a good option. This is especially true if your credit is not the best since all you need to qualify is to have equity in your home.
Is a second mortgage the right tool for me?
A second mortgage is only one of many borrowing strategies that your mortgage advisor can help you with. Since everyone’s situation is unique, it is best to sit down with a qualified mortgage broker to determine if this is the right strategy for you.
To learn more about second mortgages as well as other mortgage products, call Matrix Mortgage Global today at 1-877-366-2661.
Get the second Mortgage approved in 10 minutes: https://www.matrixmortgageglobal.ca/second-mortgage/