With travel options limited these days, you may have considered buying a cottage. Or perhaps you’d like a second home to use as an investment or rental property.
The big question is: can you afford it? That’s something we can help you figure out. We’re sMp Mortgages, and we are second mortgage experts and lenders based in Mississauga.
The notion of taking on a second mortgage may be a bit scary, but we’re here to help. No matter what reason you have for wanting to get a second mortgage, we can walk you through all the details and figure out how to make your dream a reality.
To help you realize your dream of owning a second home, we have some great tips on how to make sure you’re ready to start looking for a second mortgage:
- Figure out your budget.
- Decide if you’re willing to rent your second home or cottage out.
- Think about whether you want to consider co-owners or not.
We’ll also tell you how sMp Mortgages will work with you to make sure you get the best rate available on a second mortgage.
Figure Out Your Budget
Before you start searching online for your dream second home or cottage, it’s essential to sit down and figure out your budget. Is a second mortgage something you can reasonably afford? You need to think about all of the following if you’re considering a second mortgage:
- Can you afford to carry your current mortgage as well as a second one?
- What kind of down payment can you put towards your second home? You may need a larger down-payment than you would need for a first home, as second mortgages are considered riskier than first home mortgages.
- Do you also have enough money in your budget to cover additional costs for your second home? You need to think about maintenance and utilities, as well as insurance and property taxes.
All that may seem overwhelming, but we’re here to help you figure things out.
Are you willing to rent out your second home or cottage?
One way to make carrying a second mortgage more financially feasible is to rent out your second home or cottage when you’re not using it. Many people, especially in expensive areas, rent out basement apartments to help them carry their mortgages.
Before you come to talk to us about a second mortgage, it’s essential to decide if you’re willing to rent out your second home or cottage. It may impact how we obtain your mortgage or what your rates will be.
Another reason to think about whether you want to rent out your place is the location you select. If you want a place to get away from it all, then it doesn’t matter if it’s inaccessible. But if you plan on renting, you need to pick a place that people can reach easily.
Are you willing to have co-owners for your second home?
Another way to make owning a second home more affordable is to have co-owners with you, such as friends or family members.
There are benefits to having co-owners for a second home as it will lower the number of costs you have to carry by yourself. However, you also need to keep in mind the following:
- How will you split costs?
- Who is responsible for maintenance and paying bills?
- How will you decide who gets to use the house or cottage and when?
- What happens if someone is no longer able to pay for their share?
Again, this is something we can talk to you about when you come to see us at sMp mortgages for a second mortgage. If you decide to have co-owners, make sure you get a legally binding agreement put together. That will make things easier down the road for everyone.
How can we help you as Mississauga second mortgage lenders?
You may have always dreamed of buying a second home but felt that it was out of reach. However, with a pandemic limiting your travel options and perhaps some extra cash building up due to savings on commuting, you may be thinking once again about a second home.
That’s where sMp Mortgages can help you. We are Mississauga second mortgage lenders, and we’ll work with our lending agencies to get you the best rate available.
You’re Ready For A Second Home
Now is the time to turn your dream into reality. As Mississauga second mortgage lenders, we can help you take your next steps by getting you a second mortgage.
You’ve learned three things you need to keep in mind when considered a second mortgage:
- Your budget.
- If you’re interested in renting out your second home or cottage.
- Whether you want co-owners or not.
You’ve worked hard for your money. Now put it to good use and enjoy it with a second home! We want to help you, and we’re committed to helping you get a second mortgage at a great rate.
To learn more about how to make your dreams of a second home a reality, call sMp Mortgages at 1 855 915 5139 or contact us here.