Second Mortgages
Once a client becomes a homeowner, several financial doors open up to them. As long as they maintain a positive payment history, they can begin leveraging their financial stability and home equity into other financial endeavors.
Some Australian homeowners opt to take out a second mortgage against their house. Lenders consider the client’s request. There will be an application to fill out and submit. There’s also a financial background check.
A second mortgage is an appropriate financial product for clients who have a fixed-rate mortgage loan. The loans incur break costs, so refinancing becomes expensive. Another mortgage doesn’t force the client out of their current home loan.
Some clients opt for the additional mortgage to help their kids become homeowners, too. The current homeowner guarantees their kids’ mortgage. In this process, your client’s home becomes collateral for the additional home. The kids can obtain favorable loan terms and interest rates.
The additional mortgage option offers up to 95% of the client’s property if they use the same lender. Non-bank lenders, such as Mortgage Street, offer second mortgage to homeowners who require a low doc loan, too.
Keep in mind that all lenders assess risk in an additional mortgage. Sometimes clients find themselves in financially tight positions. Getting into more debt isn’t always the answer. Brokers can rest assured that Mortgage Street loan specialists have their client’s best interests in mind. If there’s a better solution, our team takes a look at it and offers it.
Second Mortgage Conclusion
For more information about taking out a second mortgages against an existing home, brokers can contact Mortgage Street. Our loan specialists are available to discuss financial products and potential loan terms. We’ll outline the client information that we need to start the process and go over details that they need to know as they apply.