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Second
Mortgages
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A
second mortgage is another mortgage on your home. The mortgage is
secured by the equity you have
built into your current
home or investment property. This is especially true if your property
is valued well beyond your loan amount.
The funds from a second mortgage can be used for any purpose such as
a deposit for an investment property, purchase of a new car,
renovations, going on a holiday or for any purpose.
Today most second mortgages are used for
Home
improvements
Avoiding
lenders mortgage insurance
Debt
consolidation
Purchasing investment properties
There are many other methods to access the equity in your home
without taking out a second mortgage and depending on your
lender these are;
Apply
for an increase on your current mortgage
Apply
for a “line of credit loan” where you can access an approved limit
anytime you wish
Refinance
with your current lender
Refinance
with another lender that will allow you to access a greater amount
of equity than your current lender and or offer lower interest
rate and fees.
Advantages of a Second Mortgage
Allows
you to access the equity in your home for investment purposes such
as property or shares
For
property purchases helps reduce the cost of mortgage insurance if
you have an insufficient deposit
Disadvantages of a Second Mortgage
Generally
at a higher cost than a first mortgage but there are other ways to
access the equity without taking out a second mortgage
Puts
you further into debt, especially if you use the funds for other
than investment purposes.
If you would like
more
information about second mortgages
contact us
, apply for a quote,
or call
1300 726 136
