Funding the Future with 2nd Mortgages in
Thornhill is an upscale community just north of the City of
Toronto; bisected by Yonge Street into two municipalities –Vaughan and
Markham. Experiencing a substantial
population influx due to its location, Thornhill has built a community that
values a calm suburban lifestyle, with the ability to thrive in the big city.
Its location along Yonge Street provides access to all major highways and
public transit routes – making it a simple commute to Toronto and the
surrounding area. But as residents begin
putting down roots to envision the future, accessible finances are needed to
fund future goals and endeavors. 2nd
mortgages in Thornhill are helping current homeowners leverage themselves
through valuable home equity, utilizing it as a means to realize valuable investments
The Positive Side of 2nd Mortgages
a multitude of options, 2nd
mortgages are a popular source of additional capital for homeowners in
Thornhill. Despite a wariness of the economy overall, residents no longer see
mortgages in a negative light. Instead, Canadians remain comfortable with the
size of this investment and view it as a form of "good debt”. And since housing prices continue to rise at
a rate of 8.2% year-over-year,
homeowners are looking to develop current equity as a means to invest back into
themselves. But how can this equity be
majority of Canadians have 25% or more equity (the actual paid and owned
portion of a home) at their disposal. Based on this amount, a homeowner can
borrow money from a financial institution or private lender; then pay it back
in installments over a predetermined amount of time. To a skilled investor, these low-interest
mortgage payments can leverage a multitude of options to fund expenditures such
- Expensive private schools and tuition costs.
- Home repairs, developments and improvements.
- Repaying mortgage and tax arrears.
- Purchasing additional property.
- New business costs.
mortgages – when used responsibly – can be a useful tool in consolidating
existing debt. But, since a mortgage is
secured on home equity, the house is used as collateral. By failing to repay
the loan, a homeowner risks foreclosure.
How Much Money is Available to Me?
The actual amount of a 2nd mortgage depends on a variety of
things. First, home equity can be
calculated by considering the current appraised value of a home, minus it's
existing mortgage balance. Things such
as existing credit scores and the loan-to-value ratio of a home also play a
large role in identifying how much a homeowner can borrow. Most lenders will not provide more than 90%
of the loan-to-value ratio of the 1st and 2nd mortgages.
interest rates are a huge
benefit of 2nd mortgages, as they are often far more affordable than
those you can obtain through other lines of credit. Often, lenders can match
the interest rate of an initial mortgage, but it's important to review the options of
banks and lenders available to you in order to find one that's suitable.
Whatever their purpose may be; 2nd
mortgages in Thornhill provide new business owners, families and entrepreneurs
the means to fund their goals and strategize for a more positive future. By utilizing a 2nd mortgage as a
quality long-term investment, residents can make use of their existing home
equity as a means to thrive in the community of their dreams.