Current Rates
5yr Fixed 4.69%
5yr Variable 3.95%
3yr Fixed 4.59%
Prime 4.45%
BOC 2.25%
Updated Jun 2, 2026

Mortgage Solutions · Second Mortgages

Borrow against your equity, without breaking your first.

A second mortgage sits behind your existing first on title. You keep the low rate you're locked into, skip the penalty to break it, and access a fixed lump sum against the equity you've built.

▍ Combined loan-to-value calculator

How much sits behind your first?

In Ontario, your first mortgage plus a second can't exceed 80% of your home's appraised value. Set your numbers and the stack shows what's already used, what's available for a second, and what's locked above the cap.

Home's appraised value$850,000
First mortgage balance$400,000

An estimate only. Your actual amount depends on the appraisal, your income, and credit support. Private lenders sometimes stretch to 85% CLTV, and we'll tell you what's realistic for your file.

Your home's value, stacked
80% combined cap$680,000
Less your first mortgage−$400,000
Second-mortgage room $280,000

A fixed sum, the first untouched

When a second mortgage makes sense.

A second mortgage is the right tool when you have a one-time, fixed need and don't want to disturb the first mortgage you already have.

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You're locked into a low rate

Keep the great rate on your first and skip the IRD penalty you'd pay to refinance and pull out equity.

Debt consolidation

Paying off cards and unsecured loans, where even a higher private second rate is far cheaper than 19–29% credit-card interest.

One-time major expenses

A renovation with a known budget, tuition, a divorce settlement, or an investment opportunity with a clear payback.

Bridging

Covering a down payment on a new property while you wait for your current home to sell.

If you need ongoing access to credit rather than a lump sum, a HELOC is usually better. If you're already considering breaking your first mortgage, a refinance can be cleaner. We help you compare. See below.

Four ways to reach your equity

Second, refinance, HELOC, or reverse?

Whether a second mortgage is the right move depends on the math against your alternatives. We run the all-in cost on each and recommend the cheapest path for your situation.

Often the answer

Second mortgage

Keep your existing first untouched and pay a premium rate on the second-position debt only.

Best when your first has a rate worth protecting.
 

Refinance

Break the first and roll everything into a new, bigger mortgage, and pay the prepayment penalty.

Best when you need the money and rates have dropped.
 

HELOC

A revolving line you draw on as needed, paying interest only on the balance you use.

Best when you don't need it all at once.
 

Reverse mortgage

Access equity with no required payments, repaid when you sell or pass the home on.

Worth considering at 55+ with no plans to sell.

What it costs

Typical second-mortgage terms.

A second mortgage carries a higher rate than your first, but no penalty on your first, which matters a lot if you're two years into a five-year fixed.

Interest rate
9–14%

Institutional B-lenders sit in the high-single digits; private seconds run 9–14%.

Term
~1 yr

Usually one year, renewable. Short by design, with an exit in mind.

Payment
Interest-only

Typically interest-only, which keeps monthly cash flow predictable.

Fees
2–5%

Lender fee 1–3%, broker fee 1–2%, plus legal and appraisal.

Have a number in mind?

No commitment to start. Send us your value, balance, and what you need the money for, and we'll run a second against a refinance and a HELOC.

Get pre-approved

Common questions

Second-mortgage questions, answered.

Not sure which option fits?

Tell us about your situation. We'll match you to the right product and lender.

Start pre-approval
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