Second mortgages often bear bad stigma
There are many reasons why a homeowner would seek out a second mortgage, says Dan Mass, owner of Verico Canada First Mortgage in Calgary, but it is often an admission by the client that he needs help.
Despite the reason a homeowner is taking out a second mortgage, lenders will often regard this as a solution to excessive debt. However, the borrower's reason for exploring this option could be as simple as an unforseen financial circumstance. This article from the Ottawa Citizen touches on the key points of the option of a second mortgage.
In some cases, the decision to obtain a second mortgage are as simple as home renovations, purchasing a summer home or a property for a son or daughter.
Regardless of the situation, it is advisable to speak to a qualified mortgage professional before applying for a second mortgage. Mortgage Agents have access to mortgage solutions that your bank may not. It is their priority to find the most suitable solution for each individual circumstance. Therefore, if a second mortgage is not the most effective option for your financial situation, a qualified mortgage professional will have the ability to advise you otherwise.
Read the full article from the Ottawa Citizen here.