The 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.

 

 

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.

 

 

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 stability,
• 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.