FIRST MORTGAGES, SECOND MORTGAGES & HOME EQUITY LOANS FOR BARRIE HOMEOWNERS
A second mortgage or home equity loan is when you use the equity that you have built in your home as collateral, and take that amount out, either in the form of a lump sum of cash, or a line of credit. If you are in need of a loan, there are several advantages to taking out a second mortgage as opposed to a regular loan from a bank or lender, such as:
Higher loan amount: With a second mortgage, or home equity loan, you are able (in Ontario) to take out as much as 95% of the equity that you have built up in your home. This is likely a much larger sum of money than you would be able to take out with a regular or unsecured loan. In fact, depending on the amount of money that you are looking to get, a second mortgage may actually be your only option to get that sum of money.
Tax benefits: Depending on where you live, you may be eligible to get a deduction for the interest paid on your second mortgage. This is something to discuss with both your mortgage broker, and tax professional.