2nd mortgages

A second mortgage refers to an additional loan secured on a property (Residential or Commercial) that already has an existing mortgage.   Taking out a second mortgage means you can access a large amount of cash using your home as collateral. These loans often come with low interest rates, plus a tax benefit. You can use a second mortgage to finance home improvements, pay for higher education costs, or consolidate debt.

For individuals with an established mortgage, good credit, and over 20% equity in their homes, the most cost-effective second mortgages often come in the form of a home equity line of credit (HELOC) . Conversely, those with weaker credit and/or minimal equity will explore second mortgage options through a Mortgage Investment Corporation or a private lender.

Why Consider a Second Mortgage and How to Qualify?

A second mortgage can serve as a beneficial tool for homeowners looking to consolidate debt. While second mortgages generally carry higher interest rates than primary mortgages, these rates are often more favorable compared to high-interest credit cards, car lease payments, or unsecured lines of credit.

Opting for a second mortgage to consolidate debt and manage financial commitments can potentially enhance your credit score. This improvement may facilitate quicker qualification for a mortgage with a prime lender.

To qualify for a second mortgage in the second position, lenders will promptly assess:

Credit Score: A higher credit score usually leads to lower interest rates.
Equity: The amount of equity in your property significantly influences your eligibility for a second mortgage.
Income: Lenders will verify your income to ensure a stable source that guarantees your ability to meet payment obligations.

calculate your mortgage

Helping you go from getting started to getting the keys!


The most trusted mortgage company in Ontario.