Whether you find yourself worried about making payments for existing debts - auto loans, credit cards, medical bills, tuition fees, etc. - or you need money to repair or renovate your existing property, or are even considering a new business venture this year, you will want to learn about obtaining a second mortgage as a financing option.

If you have equity in your home (calculated as being the difference between the current value of your home and the amount already paid towards the first mortgage), you can apply for a second mortgage.  When you do, you'll notice that the interest rate is likely higher than that of your primary mortgage interest rate.  The reason for this difference is that in the even a borrower defaults, the first mortgage will be paid off first, therefore putting the second mortgage in a somewhat higher risk category to the lender.

Applying for a second mortgage is similar to the process you went through when you applied for your first mortgage.  There is still paperwork to complete, options to compare and rates to negotiate.  Alternatively, you may want to ask about the possibility of refinancing, in order to obtain the money you need.  Direction on what's best for you, plus dedicated service and individual advice, are included in the support that we as a mortgage brokerage provide to our clients.

Let's take some time to discuss the benefits and risks of all your options, to ensure you make the right decision for your own personal needs.