What is a Second Mortgage?
A second mortgage is a loan that is taken out on a property that already has a mortgage. Some professionals may define second mortgages as a mortgage taken out on any property, including properties that no longer have the initial mortgage outstanding and has been paid off.
Second mortgage lenders specialize in a robust array of financial vehicles including refinancing, debt consolidation, bankruptcy and many others. In most cases, second mortgage Toronto cases are based around incurred financial hardship.
The second mortgages Toronto homeowners usually allow the homeowner to borrow directly against the value of their property. They use the home as collateral, tapping into the home's equity.
The second mortgage in Toronto can be used in a number of ways outside of debt consolidation or refinancing. Many homeowners also use them to start a business, expand a business, pay off student loans, start a college fund, handle a financial emergency, make a big asset purchase or take a well-earned vacation. One of the most popular aspects of the second mortgage is that there is no limitation to how the money is used.