Bad credit score can cause a lot of damage to your prospect of getting a loan from a bank. Maybe you are in dire need of funds to consolidate a debt, undergo a good renovation work on your home, offset credit cards or even undertake any leisure trip or venture, then the second mortgage in Toronto is the best option for you. Improving your credit card rating can be achieved by the consolidation of your debt with a second mortgage, eliminating all of your credit card debts and also other consumer debts.
Improving your bank rating puts you in the good books of banks because these financial institutions are very concerned about credit scores. This is why when you apply for loans, chances are, and your application might hit the rock if your credit score is below 650. So this is where the second mortgage in Toronto comes in handy, as it will help you consolidate your debts while you embark on rebuilding your credit score. You also get the opportunity of refinancing the first and second mortgages and also merging them into one and entirely new first mortgage that also has a low rate with an institutional lender like a bank.
With a bad credit score, getting a second mortgage can be really difficult because most lenders are not prepared to take up such heavy risk. So if you find yourself in such a position don’t lose hope or panic but rather seek the help of an experienced mortgage broker and get professional advice and service.
The good thing about consulting experienced mortgage brokers is that they have a vast contact of second mortgage lenders whom they can connect to and find the best second mortgage rate possible for you. He or she will take his time to enlighten you on the terms of the deal and also give you the best financial plan to refinance you out of the second mortgage into an entirely new low rate mortgage that you probably may not have ever merited based on your current credit score.
Note that, unlike the banks, the second Mortgage lenders don’t really care much about your credit score. But however, they will still want to ensure that you make concrete efforts to service the loan and most times, they might even require you to use proceeds of your second mortgage proceeds to pay off your other high rate debts.
You might probably be asking yourself this question, can I refinance the second Mortgage?
The answer is a resounding YES! But you have to know that the process is very critical and as such should be thoroughly planned. Normally the second mortgage loans are not often more than 1-2 years; they are short termed. Therefore there won’t be any need to renew your second mortgage if the funds were effectively utilized.
In conclusion, refinancing the two mortgages into one is arguably one of the best moves to make considering the fact that, second mortgages often come with a high rate.