Homeowners often face unexpected financial challenges. Whether you own a house or a condo, you can access new sources of financing by using the equity you have built up in your home.
If you are a property owner who is looking to secure some extra financing to help traverse a rough patch or make an investment, a great way to go about it is a second mortgage.
Canada has property owners from all over the country who have used Credit Arch for their financing needs, including second mortgages, and Credit Arch can be particularly helpful when the bank is taking too long, requires too much paperwork, or if they have rejected you outright.
Why Should You Use Credit Arch for Your Second Mortgage?
The reason so many people trust CreditArch to connect them with the perfect lender for 2nd mortgages is our commitment to simplicity, security and transparency, all in the service of providing great results for our clients.
What Sort Of Information Is Required?
At CreditArch, we don’t need too much of your data to get started – just the basics. While every loan type is different, you’ll likely need:
Because you are applying for a second mortgage, you may also need to include information related to how much equity you currently have. The amount you will be eligible to receive will be directly related to that amount. Your credit score will be factored in by lenders to help set mortgage interest rates. You can get lower rates if you have a high credit score, a weak score will lead to higher interest rates.
How Can I Use my New Financing?
For many people, their home equity is a huge source of potential value that remains untapped. Using this store of value to seek out new financing in the form of a second mortgage can be a huge advantage for consumers, if used correctly.
Depending on how much equity you have in your current property, you can leverage your second mortgage by using the money to:
Types of Second Mortgages
If you decide to take out a 2nd mortgage, there are different types of financing available – home equity loans and home equity lines of credit (HELOC).
Home equity loans are lump sum payments deposited directly to your bank account. Secured by your home equity, these loans are repaid in regular installments.
A HELOC is a revolving line of credit that you can borrow from as you see fit. Borrow, pay off your balance, and borrow again.
Why Use a Home Equity Loan
These mortgage products are a good solution for many people because their structured repayment plans are easy to calculate and budget for. Also, depending on your lender, you might be able to get a fixed interest rate, one that can be lower than variable rates, which makes for lower monthly payments.
Home Equity Line of Credit
These products usually come with variable interest rates, which fluctuate based on an index, so your monthly payments will be less predictable than with a home equity loan. But they HELOCs provide a large amount of disposable credit, as applicants are usually able to receive as much as 85% of the value of their homes in credit.
Many people enjoy the flexibility provided by a HELOC because they can borrow only the amount they need and interest is only applied to the amount withdrawn, and they can pay it back as they see fit, provided they make at least the monthly minimum payments.
Get Started With CreditArch
Not sure where to start? Simply contact us and we can help you understand your options, or walk you through our simple process step by step.
Need immediate assistance? Contact Us