Using a Second Mortgage To Pay For Medical Bills For Relatives Abroad

Unfortunately, leaving the country does not mean you are exempt from paying your medical bills or any other debt you may have. If you or any family members have decided to take a vacation abroad, or have decided to uproot their home and move overseas, they will still need to take care of their bills.

If you are in this situation you can help out your loved ones by paying for their medical bills when they are abroad. If you do not have enough money in your account to pay for their bills, you can easily take out a second mortgage on your home.

Second Mortgage Requirements

In order to qualify for a second mortgage, you will need to have at least 20% of the equity in your home. You can build equity by paying off your mortgage balance every month. Your home can also increase in equity naturally overtime since most homes appreciate in value. Therefore, the longer you have lived in your home and the more mortgage payments you have made, the more equity you will have.

Another way you can qualify for a second mortgage is by having a stable income. Your Brampton mortgage broker will want to see that you have been with your current employer for at least two years. This shows that you are financially responsible for having a consistent income.

You will also need to have good credit. The lower your credit score is the less likely lenders will want to work with you since you will be viewed as a risky borrower. When paying off your debt, try to avoid missing a payment so you keep a high credit score. Also, avoid making any large purchases when you start the second mortgage application process because this too can lower your credit.

Once you meet these requirements and have been approved for a second mortgage you will receive a lump sum of money that can be used to pay off your relative’s medical bills while they are abroad.

Supporting Your Family With a Second Mortgage

Before you begin applying for a second mortgage, you need to make sure you have enough equity in your home. A second mortgage is an additional loan that is taken out on top of your existing mortgage, and your home is put up as collateral.

Second Mortgage Requirements

To get approved for a second mortgage, you need to be sure and have at least 10-20% equity in your home. You will also need to have a good credit score ranging from 550 to 900, as well as a stable income. Most employers will not approve you if you have not been with your current employer for at least two years.

Other second mortgage requirements include not having enormous amounts of debt. If you owe too much on your first mortgage, the likelihood of your application getting rejected is high.

After you meet these requirements and get approved for a second mortgage, you can use these funds to help support your family.

Supporting Your Family With A Second Mortgage

There are many benefits you could gain by obtaining a second mortgage. You could help support your family by using this loan to pay for renovations on your home, to make your place a newer and safer environment for your family.

You could also support your family by helping fund their education. Interest rates on a second mortgage can be significantly cheaper than those on a student loan, therefore, using your mortgage to pay for education can help prevent major student debt in the future.

Also, if you wish to have an additional source of income to help support your family, you could use your second mortgage to pay for an investment property. You could put your real estate up for rent and can deduct mortgage interest, property management, and much more from your taxes. For more information on tax deductions for an investment property, please contact 905-791-1100.