2nd Mortgages

A 2nd mortgage is a type of mortgage that allows homeowners to borrow against the equity in their home. It is called a 2nd mortgage because it is taken out in addition to the 1st mortgage that was used to purchase the home.

The amount that can be borrowed through a second mortgage is typically based on the amount of equity available on a property. The equity is the difference between the current value of the property and the outstanding balance on the first mortgage. Lenders who provide 2nd mortgage will have a maximum LVR they will lend up to in a addition to the 1st mortgage.

Second mortgages can be used for a variety of purposes, such as home improvements or debt consolidation or working capital for a business. They typically have higher interest rates than 1st mortgages, since they are considered a higher risk to lenders.

A 2nd mortgage is short term product with a term ranging from 3 months to 5 years.