{"id":210,"date":"2023-03-27T10:32:34","date_gmt":"2023-03-27T10:32:34","guid":{"rendered":"https:\/\/budgetrates.ca\/?post_type=service&p=210"},"modified":"2023-04-14T19:42:44","modified_gmt":"2023-04-14T19:42:44","slug":"second-mortgages-home-equity-loans","status":"publish","type":"service","link":"https:\/\/budgetrates.ca\/fr\/service\/second-mortgages-home-equity-loans\/","title":{"rendered":"Second Mortgages \/ Home Equity Loans"},"content":{"rendered":"
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What is a second mortgage?<\/h2><\/div>\n
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To put it simply, a second mortgage (also known as a home equity loan) is an additional loan you take out on a property that is already mortgaged.
\nYou can secure this mortgage by using your house as collateral and tapping into your property\u2019s equity.
\nAfter all, it’s your money!
\nWhy let it sit there? Let that money you\u2019ve earned start working for you!<\/p>\n

For lenders, offering a second mortgage is risky as they\u2019re in second position on your title. This means if you default on your payments and the property gets taken into possession, the lender in first position with the original mortgage will always get paid out first. Due to this added risk, rates for second mortgages are always higher than those for primary mortgages.
\nWhen you take out a second mortgage, you are using your home as collateral to the lender. This means that if you do not pay, the bank has the option to foreclose just as it does with a first mortgage. That said, because you have a physical asset backing your loan, your interest rate will be substantially lower.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t<\/div>\n\t<\/div> \n\n\t

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Here are some reasons why a second mortgage might make sense:<\/strong><\/p>\n