RateHub defines a second mortgage as “an additional loan taken out on a property that is already mortgaged.” Sounds risky – and indeed it comes with plenty of risks. But it also comes with rewards.
There are two major kinds of second mortgages: The home equity line of credit (HELOC) has a variable interest rate and acts much like a credit card, allowing you to withdraw the cash you need, when you need it. And the fixed-rate home equity loan allows you to borrow a lump sum and make set monthly payments.
Second mortgages provide speedy access to money at a generally favourable interest rate – and the interest you pay on mortgages may also be tax deductible. Compared with money borrowed on a credit card or a standard consumer loan, a second mortgage may be easier to obtain, and you can use the money for whatever you want: home remodels, tuition – even a dream trip.
The most important disadvantage: because your home secures the loan, the second mortgage lender takes on less risk than with a personal loan, and may offer you more money than you need. Many borrowers are happy to comply, only to find themselves in trouble.
Ensure you can make your monthly mortgage payments easily, even when interest rates go up or personal circumstances change. And note that if interest rates increase, so will your monthly HELOC payments. Home equity loan payments aren’t affected by rate increases during the term of the loan.
So go ahead and make that bucket-list trip a reality – but plan carefully.
If your green thumb is out of joint thanks to limited (or nonexistent) outdoor space, try some out-of-the-yard thinking, and you’ll soon be digging in the dirt. You can garden anywhere if you’re resourceful.
Go vertical: If you’re in an urban setting, take inspiration from the high-rises that surround you. When there’s no room to spread out, go up. Use tiered planters and a trellis to create a living wall or a “room” divider on your balcony. Add wall pockets to grow small plants such as herbs. When you think of your outside walls as garden space, you suddenly have lots of room!
Think outside the window box: Who says plants only grow on prairies and in pots? Create a unique arrangement of washbasins, bowls, cookware, repurposed rain boots, previously loved furniture – nothing’s off limits for the innovative container gardener.
Automate it: If you have neither the space nor the green thumb, this solution may be for you. The recently invented Modgarden is a small indoor farm in a cabinet, and it’s fully automated. You simply fill the water reservoir, add seeds, and wait for your veggies and herbs to grow. Some restaurants in colder climes are trying it to grow off-season produce.
Redefine the fruit basket: Fit a large wicker basket with a plant-friendly container filled with potting soil, and add your favourite herb and edible flower seeds. Soon you’ll have a microgarden that’s useful, decorative, and different all in one.
Bring the outdoors in: If you love greenery but lack green space, why not bring the garden inside? Add small potted trees to sitting areas. Integrate potted plants into your décor. Fill your foyer with foliage. You may not have much square footage, but you can transform the space you do have into a garden that flows from room to room. Just remember to provide your plants with the right soil and lighting conditions, water regularly … and enjoy!