If it’s time to expand, upgrade - or downsize!
Changing your mortgage is a prime opportunity to make overall adjustments. A knowledgeable mortgage broker will consider all your financial goals and help you navigate the many variables at play.
Start with a candid conversation, the sooner the better. Once the details of your situation are known, your mortgage broker will be able to explain the best course of action. Identifying the time frame for when your mortgage may changeover can enable a qualified mortgage specialist to help you mitigate pre-payment penalties, resulting in less penalty fees from your lender.
Start with Questions
Asking good questions is the way to begin assessing your next move. If you have an existing mortgage and are moving out of your home to a new one, a brief consultation with a mortgage broker will help determine your options.
Some questions to consider would be:
- Should you go ahead and look for a new house to buy, or should you sell your home first?
- Does your existing mortgage have any pre-payment penalties, and how can you avoid them?
- Do you want to keep your existing property and rent it out?
- If this is for a second home, or vacation home, what are your options?
- Does buying a second home still require a down payment or can you use your current home-equity toward the mortgage on the next home?
- Can you also use your home equity to cover closing costs?
- Will there be a time gap between when a new house becomes legally yours and your existing house sells?
Use our Mortgage Compare calculator or other online tools to start your comparison process.
Move Forward with Answers
From down payments to closing costs, your mortgage specialist will outline all the options available to you during this time of transition.
Just like with your first mortgage, you can get a pre-approval for your second which will allow you to move closer toward closing the deal. With possible home-equity from your existing mortgage, you may be able to offer a greater down payment on your second home, clinching the sale and moving you forward faster.
If you can’t access value from your home equity right away, bridge financing may be an option. Bridge financing gives you the temporary finances to acquire your new dream home. By securing a bridge loan, it gives sellers who may be considering your Offer to Purchase the confidence to know you have the financing in place and can give you an advantage if you are in a competitive sellers market.
We know what to do when there are a lot of moving pieces. You want them to land perfectly, working to the best advantage for you, your family, and overall financial situation.
Never Used a Broker Before? Doesn’t Matter!
Even if you haven’t gone with a mortgage broker before, you can come to us with your questions about what to do, now that you are about to buy your second home.
Whatever your needs, a Castle Mortgage advisor gives you the knowledge to control your assets and not feel like you’re at the mercy of all the little-known factors involved in a major change. In fact, changing your mortgage to secure a second home can be simpler than you thought, and can result in more financial security than before. Arrange to come meet with us today!