2nd Mortgages in Richmond Hill: Business
Owners in the Boom
real-estate market in Richmond Hill is booming, attracting newcomers from
around the world with its diverse multicultural base and excellent
location. Just off of Toronto's popular
Yonge Street, new business and restaurant owners are putting down roots, which
has made Richmond Hill Canada's fastest growing community in the 1990's. When new
immigrants began buying this property in the 1980's, however, most of the homes
were detached bungalows built on sizeable lots.
Today, with the average price of a detached bungalow going for an
upwards of $670,000, it's no wonder homeowners are using things like 2nd
mortgages in Richmond Hill to unlock hidden home equity.
Various Options in a Diverse Community
The ever-growing population of Richmond Hill is a testament to its rapidly
developing community and real-estate market. By utilizing a 2nd mortgage, a homeowner can invest back into
themselves and the future of their family by ensuring the longevity of their
current home and business. But it's
important to understand the variety of options available to you in order to find one that works.
Refinancing, Home Equity Line of Credit – and Loans
In all of these instances –
including a 2nd mortgage – a homeowner will have the benefit of
securing lower interest rates over a personal loan or credit card.
Refinancing a home means taking out a new loan to pay off the
existing primary mortgage, often in order to extend the term of repayment or to
obtain new interest rates. A homeowner
can borrow up to 90% of the value of their home, minus the amount left from the
primary mortgage. With a home equity
line of credit (HELOC), a homeowner can borrow funds whenever they want up
to the predetermined credit limit. After
paying the money back, it can be borrowed again and is available for 80% of a
home's value. A home equity loan,
however, is paid out in one lump sum and is based on the same criteria on which
the primary mortgage was approved.
A 2nd mortgage is an excellent way to access additional capital for
residents in Richmond Hill. A valuable
option when liquid assets are not readily available, home equity possesses a substantial
amount of value a homeowner can use for expensive projects like home
renovation. It is calculated based on up
to 90% of a home's appraised value, minus the existing primary mortgage
amount. 2nd mortgages:
- are based on home equity instead of income or job
- normally have low interest rates,
- can be used to consolidate debts and settle
outstanding payments, and;
- can be used to fund important
personal milestones, such as business start-up or education costs.
Despite rising housing costs, mortgage
rates remain affordable, which makes them a useful tool for savvy business
owners and investors. Various mortgage calculators are
available to help homeowners refigure their payments and schedules in order
that they can stay on top of finances and plan for the future.
This thriving community is here to stay,
as are its families, enterprises and homes.
Whether it's to accumulate start up funds for the business you've always
wanted or to renovate your family home to ensure its longevity, a 2nd
mortgage in Richmond Hill can be a fast and economical way to get the money you
need, at a secure and low-interest rate.