Owning a home is a significant investment for anyone, but it doesn’t have to be one that restricts your financial flexibility. Your home is among your most powerful financial assets. Home equity lines of credit and second mortgages give Toronto homeowners the financial flexibility to fund other opportunities, large-scale expenses, home renovations, or even pay your children’s tuition. When used responsibly, borrowing against the equity of your home can be a great solution for any given situation and even help you get out of debt faster. With lower interest rates than credit cards and other forms of credit, taking out a second mortgage can actually lower your interest payments and help you save money over time. It also gives homeowners one simple payment to take care of at the end of the month.
How Much Can I Borrow?
The amount available to homeowners will depend on the amount of equity they have in their homes. Your home equity is the value of your home, minus all of the debts you have against your home.
Some institutions and lenders will help provide financing for up to 90%
of the value of your home. The amount of financing available to you will depend
on how much you have already borrowed against your home. Often times, homeowners
refinance their homes to help consolidate their debt and get themselves out of
debt faster. Securing second mortgages for your Toronto home can give
homeowners the financial flexibility to comfortably handle any large-scale
expenses, home renovations, or emergency situations. By borrowing against the equity of your home,
homeowners can secure lower interest rates, helping to save money over time and
keep cash in your pockets in the short term.
It is important to conduct a careful review of your financial situation
before making the decision to take out of a second mortgage. A mortgage advisor
can help review the terms of your first mortgage and determine whether or not a
second mortgage is most beneficial given your current situation. It is important
not to use the additional available funds on luxurious items or to fund a
continuous cycle of spending.