A second mortgage is an additional mortgage you get on a property that already has a mortgage. A second mortgage can look like a regular mortgage where you borrow all the funds at once. It can also come in the form of a home equity line of credit (HELOC) where you borrow funds as you need each month up to an amount approved by your lender.
In 2020 alone, The Canadian Bankers Association reported 0.25 percent of mortgages were in arrears across Canada. The financial crisis of 2008 led to a decrease in interest rates, causing a surge in home purchases. Now, just 12 years later, homeowners are suffering yet another economic crisis, paired with a pandemic that has forced many Canadians into financial flux.
A reverse mortgage is a loan based on the value of your home. With a reverse mortgage, you are not selling your home to the lender. You still hold the deed to your house and you get to live in your home.
Debt consolidation is a great way to pay your various debts through one payment plan with one lender. The total amount you owe has not changed, but most debt consolidation loans have lower interest rates than many other types of loans. The savings from paying a lower interest rate could be significant.