Second Mortgages Kitchener, Waterloo, ON
A second mortgage might be more economic than a refinance.
In the case of the refinance, the existing principal owed plus the increase in amount borrowed will be at the new interest rate being charged. If only a modest increase is being added to an existing mortgage, the interest cost on the original amount borrowed might increase significantly.
In contrast, a second mortgage might be much more cost effective. The second mortgage will only be for the increase in the amount borrowed. Hence, only this amount will be subject to the then current mortgage interest rate. The total interest cost of the first and second mortgages can then be compared to the total interest cost of the refinance option.
You will need to find a lender that is willing to be placed in the second position behind the holder of the first mortgage. There are numerous lenders available to you.
Timing (when does the existing mortgage term expire?); the additional funds needed and the total cost of interest will be factors that influence your decision making.