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 elsewhere.

 

 

Amongst 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 utilized?

 

The 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 as:

• Expensive private schools and tuition costs.
• Home repairs, developments and improvements.
• Repaying mortgage and tax arrears.
• Purchasing additional property.
• New business costs.

2nd 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.

 

Low 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.