A second mortgage gives you a chance to consolidate your debts and restructure your finances. It is a great way to get out of a tough financial situation. However, you have to be sure that you are getting a good second mortgage in Toronto deal so that you can get out of the debt trap faster. There are companies like Fair Choice Corp that offer Toronto second mortgage payments with pretty quick turnaround, which ensures that your monetary requirements are fulfilled in time.
Here are 5 tips that will help you get the best deal:
Tip 1: Learn About the Interest Rates
Most second mortgage deals are purely based on interest based payments, hence you have to be sure about the amount that you’ll have to shell out in case you opt for a specific type of loan. With these types of mortgage options, the interest component can vary. Make sure that you understand what you are signing up for. This will help you plan the repayments and also avoid any kind of default.
Tip 2: Clarify about Property Appraisal Costs
The second mortgage is against the same property for which you have a mortgage already. You will have to get the property appraised again to determine the equity and hence the amount of loan that you can get. Usually the property appraisal is a charged process, make sure that you can understand the amount charged for the same. You can explore the option of getting it done independently if that is acceptable and works out to be cheaper. Remember, in the times of financial crisis, any money saved is money earned.
Tip 3: Say No to Upfront Fees & Quote Obligation
Ideally, there should be no upfront fees for an application for second mortgage in Toronto. In case your lender is asking you to pay an upfront fee, it is better to change the vendor. Also there should be no compulsion for you to accept the quote given by the lender. You should be an informed buyer and clarify that you will only make a decision after all terms and conditions are given. Make sure that you read all document carefully before signing.
Tip 4: Deal with a Licensed Mortgage Broker
It is recommended that you deal with licensed mortgage brokers only. This will ensure that the Toronto second mortgage you secure is as per the legal norms set by the financial authorities.
Tip 5: Ask for Turnaround Time
While applying for a second mortgage Toronto, time is a crucial factor. You might want to take that loan because you need to fulfill a financial commitment that you are unable to pay for. If you are trying to pay off your high interest credit card bills before the due date and the processing time is higher, the purpose of the loan is unfulfilled. Make sure that you discuss with the lender about the time it will take for you to get the mortgage payments. In most cases 10-12 days is a fair deal.
Keep in mind the above mentioned 5 tips and you will be able to get a good second chance mortgage deal for sure!