Mortgage Brokers Second Mortgage in Toronto - Why And How | Page 7

WHY AND HOW YOU SHOULD APPLY
FOR A SECOND MORTGAGE
• Why you would need it:
1.
2.
3.
For home improvements
• If you’re planning to make any renovations or improvements to your
house, a second mortgage can be taken out to fund the work and
keep your house on the market for potential buyers.
Personal projects
• The funds from a second mortgage can be used to your benefit as
well as your home’s, used to put a kid through college, fund a
significant purchase such as a new car, to purchase a new home or
start a business, or just to have some extra cash in the case of an
emergency.
Consolidating debt
• Second mortgages can also be used to consolidate debt from
credit cards and personal interests into a loan which can give you
lower interest rates on your home which also lower risks for banks’
lending you money. Debt consolidation also lowers interest rates
and improves your credit scores.