So, should you combine your mortgages?
Take a look at these five points to find out if it’s something you should consider.
Do you have the ability to refinance your first and second mortgage together for a reduced interest rate? If so, then you should carry on with this and combine both mortgages.
This will result in a reduced interest rate (You pay less.) and no added insurance!
Along with both your mortgages being easier to manage, combining both your first and second mortgages could reduce your payments to a shorter term. Do you have two properties that need paying off?
If so, this means you’ll pay them off sooner and they’ll be all yours without the stress of paying off your mortgages for years to come! However, your monthly outgoing payments will be increased during this time.
Does this sound like something you’d be interested in? If so, you should consider combining both your second and first mortgages.
Are you paying out too much, and finding it hard to keep on top of your payments?
Combining both your second and first mortgage can significantly reduce the amount you pay however, this only makes sense if you’re paying too much and are in over your head. You may end up paying more money in interest rates, but if you’re struggling to keep up with your payments then this should be an option you consider.
Do you have lots of payments coming out of your bank each month and are you struggling to keep them organised?
Combining both your mortgages and unsecured bills into one can help you to stay on top of your payments, reducing any confusion, as it’s just one payment rather than multiple charges.
You may find that combining both your mortgages into one may result in tax deduction for the self employed (consult with your tax accountant). If so, this is when the idea of combining both mortgages becomes more appealing, find out if this is a possibility for you!
Overall, determining whether combining both your mortgages is a good idea is based on four key factors:
When combining both your mortgages make sure you’re doing it under the right circumstances that are going to benefit you in the long run. Talk with your our mortgage brokers and agents to discuss if this is something you should consider.
So, will combing both your mortgages benefit you in the long run? If so, why not get started by calling us today:
Toronto Second Mortgage
Broker 1880 O’Connor Dr
ON M4A 1W9