Mississuaga Debt Consolidation Strategies
“Mississauga Debt Consolidation Strategies Can Take Many Different Forms, Depending On Your Financial Profile And Debt Consolidation Requirements”
In this age of high consumer debt, debt consolidation strategies for Mississauga based properties are not only popular but plentiful.
The basic premise with consolidating debt through mortgage, is to use the existing equity in your home to acquire additional funds that will be utilized to pay down short term, potentially high cost debts that aren’t coming down on their own.
At the present time, with real estate values at or near peak levels and interest rates staying at near historical lows, this is potentially the best time to be undertaking a debt consolidation action.
There are basically two different debt consolidation strategies that can be employed with different variations to each. The first and most common strategy is to refinance your existing mortgage into a new mortgage with a higher approved amount to allow for the pay down of other debts.
The new mortgage can have a longer amortization term than the original mortgage, allowing for a longer repayment terms which will help reduce the monthly payment requirements.
There are many different options and programs to consider in the Mississauga area for debt consolidation through bank and institutional lending sources due to the strength of the overall local real estate market. And even for cases with weaker credit, the area boasts of a number of private mortgage lenders that are able to refinance an existing mortgage if required.
To maximize the amount of borrowing that can be obtained via a bank or institutional mortgage lender, mortgage insurance allows refinancing for the purpose of debt consolidation to go up to as high as 90% of the appraised value of the property. For private mortgages, the max borrowing level is more in the 70% to 85% of appraised value.
The second debt consolidation loan strategy involves placing an additional mortgage behind what you already have registered and owing against the property. Depending once again on the borrower’s credit profile, the additional mortgage can be an amortized payment program or a line of credit.
The rationale typically for securing a second mortgage is to either protect the interest rate of the first mortgage which may be lost through refinancing, or to allow for fast mortgage repayment if the borrower expects their short term financing need to be retired in the short term.
Private second mortgages are very common for debt consolidation, but typically offer only a one or two year term, requiring a future solution to be arranged to pay off the consolidated debt.
If you want to know more about Mississauga Debt Consolidation Strategies, please give me a call so I can quickly go over your requirements and provide relevant debt consolidation options for your consideration.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel