Taking out a Second Mortgage in Saskatchewan
If you think about it, if you’ve been paying on your mortgage for a number of years, you’ve been basically turning your house into a giant savings account. As long as you have plenty of money coming in from other sources, you don’t ever have to tap that savings account. For many people, they only need one loan for their home, as they have put aside savings for such things as their children’s tuition and they may not run into any unforeseen circumstances, such as the loss of a job or a chance to get a great deal on a vacation property.
For a lot of people, though, financial circumstances arise that make a second mortgage a good idea. If you have a major surgery coming up, if you put it on a credit card, you’re going to pay much higher interest rates if you can’t pay for it all during that first month. If you take out an unsecured loan, your interest rate will be higher as well. Why take out a loan that could charge you twice as much interest when you could take out a second mortgage on your home that would cost a lot less?
There is a psychological barrier that some people face when it comes to taking out a second mortgage. They think that their house is supposed to be their first priority – which is the truth. You don’t want to take out a second mortgage if there’s a chance you’ll default on it, because you’ll end up in foreclosure proceedings. However, if you’re taking out a loan that you already know you can pay back on the basis of your budget, then why not take out a loan that costs you the least over time?
In Saskatchewan, Amansad Financial has relationships with a number of different lenders. You might think that all banks are pretty much the same – a lot of our clients come to us thinking that. However, banks aren’t even the only type of entity that provides mortgages. If you have pristine credit, then you’ll probably get the best interest rate through a bank. However, that’s not always the case, especially if you’re self-employed. In cases involving self-employment, or in cases that involve credit that is less than perfect, private lenders can often provide you with the best deal for your situation.
Get in touch with us if you are considering taking out a second mortgage on your home, or if you have a significant financial expenditure coming up that you’re not sure how you can afford. We have even helped people take out debt consolidation mortgages to settle their consumer debt and pay themselves back at a much lower interest thanks to the equity in their homes. Don’t get caught overpaying interest – take us through your current situation and let us put together a proposal that will help you get the money you deserve without having to pay through the nose for it.