The Toronto real-estate market set some high standards in 2014.  With the average price of homes growing throughout the year and ringing through at an 8.4% increase since 2013, it's no wonder residents are looking to develop current home equity, rather than buying new.  Despite rising housing costs, mortgage payments remain affordable, making  2nd mortgages in Toronto increasingly popular as a means to tap into these funds and gain access to underutilized capital.  

 

 

When looking to realize valuable home equity or idle funds, there are many options available to homeowners in the GTA.  Loans, refinancing and 2nd mortgages all aim to lend money against the owned portion (or equity) of a house.  Put simply, if your home is worth $500,000 and your primary mortgage $300,000; you "own” $200,000 of your house and can obtain a 2nd mortgage based on that amount in order to help pay off the outstanding debt.  There are many tools and mortgage calculators available to homeowners when looking to refigure payments and amortization schedules.  A 2nd mortgage:

• is separate from your primary mortgage
• does not have to be obtained from the same lender
• can be used for either commercial or residential buildings
• has a different interest rate and payment schedule
• is secured against your home
• generally has lower interest rates than credit cards or unsecured loans

By making use of a second mortgage to consolidate debt, homeowners in Toronto can allow themselves the flexibility to pay off higher-interest loans with a lower-interest mortgage. Using these funds responsibly can mean utilizing a home's current equity in order to increase its future equity by investing in its longevity through things like home improvements and renovation.  Whether looking to tackle interior improvements or larger structural home additions, a 2nd mortgage can fund the work while largely increasing the resale value of a home.

 

Benefits of a 2nd Mortgage

Though housing costs in Toronto continue to soar, residents remain without regret that their sizeable mortgages are a form of positive investment for the future.  The majority of Canadian homeowners own 25% or more of their properties, which means that there is a sizeable amount of unrealized capital with the potential to be used.  This capital, when realized, can be channelled into those very things that make Toronto a metropolis that attracts students, artists and business people from across the globe.  In addition to home renovations, 2nd mortgages in Toronto can be used to fund personal endeavors such as:

• The costs of returning to university or college.
• Injecting capital into a new business.
• Purchasing additional properties.
• Additional cash needed to realize a passion.
• Purchasing a vehicle.

By unlocking this home equity already accumulated, home owners can borrow from funds that are already theirs at a low price and invest it back into themselves.

Toronto's a melting pot of hungry entrepreneurs and dreamers.  Whether you're in the market to start up the business you've always wanted or to invest in Toronto's booming condominium market, 2nd mortgages in Toronto can be the revenue needed to realize your goals and plan for the future – the soundest investment of all.