Simply put...

Second mortgages are loans taken out against a home that has already been mortgaged. They can be an effective tool if you’re in need of financial assistance.

They can raise funds for whatever you need the money for, whether that’s paying off credit card debt or starting a small business.

A second mortgage is the main alternative to refinancing your first mortgage, which enables you to increase the size of your loan by withdrawing more equity against your home.

If this is the right solution for you, at we are more than happy to guide and advise you every step of the way.

A second mortgage can be used for

  • Paying off any outstanding bills

  • Quickly getting cash on hand

  • Cover your home renovation

  • Buy a secondary property

  • Stop a power of sale

  • Funds to help with temporary needs

  • Plus much more!

Our team of experts help to cut your monthly payments by up to 50% by using a second mortgage product in Ontario!

How much can you borrow?

How much, depends on the equity in your house. In other words, how large is your first mortgage in proportion to the value of your home.

If you have built up some equity in your home, a second mortgage is a great way to access money fast in Ontario. The experts at work with many lenders that can not only get you approved quickly but get you the best rates in Ontario!

The requirements for getting a second mortgage in Ontario are easier than ever. As a homeowner, the qualifications are based more on home equity than credit scores and income.

However, the rates and conditions attached to that second mortgage will vary depending on the lender. For example, a credit score and income typically do not play an important role when qualifying for a second mortgage, unless dealing with an institutional lender. 

Canadalend has access a variety of second mortgage lenders in Ontario through many our wide selection of lenders that do not require income or credit qualifications.

Second mortgage or refinance?

Depending on your circumstances, it could be more cost-effective to refinance your existing loan rather than take out a second mortgage due to lower interest rates.

However, there are a few situations where taking out a second mortgage could more cost effective for you. For one thing, your first mortgage may be locked with a fixed period, which would mean you’d have to pay a significant penalty to close the deal prematurely. Secondly, your first mortgage may be locked in at a good rate.

Deciding what’s right for you should be simple. That’s why guide you through your options, based on your personal circumstances.

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We offer a range of solutions for all your second mortgages needs!

With our years of experience we’ve seen it all, so we’re used to fine-tuning our services to unique financial needs. We understand that for most people their home is the most valuable asset they will ever own, so it’s vitally important that they get the service they need.

At we are dedicated to 5 star customer service. Get in touch with us and a lending specialist will help set up an appointment for a free personal consultation. We will help you review your mortgage options and find the solution that fits your needs!

Frequently asked questions

  • How does a second mortgage work?

    A second mortgage is a loan taken out against a home that has already been mortgaged. How much you can borrow for a second mortgage depends on the amount of equity you have in your house.

  • Is it possible to have 2 mortgages?

    Yes, it is possible to have two mortgages. You can take out a "second mortgage" even if you already have a mortgage on your house.

  • Does a second mortgage hurt your credit?

    No, a second mortgage will not hurt your credit as long as you make your payments on time.

  • Is it better to get a second mortgage or refinance?

    That depends on your circumstances. It may be more cost-effective to refinance rather than take on a second mortgage. However, if your current mortgage is locked in at a low rate, or you have to pay a penalty for refinancing, then a second mortgage may be a better option. We can help guide you through both options to see which is best for you!

  • How much would a second mortgage cost?

    Our second mortgage rates start at 5.99%.

  • Who Offers a second mortgage?

    At Canadalend, we work with a wide variety of lenders, including trust companies, and private mortgage lenders, who offer second mortgages and do not have income or credit qualifications.

  • What are the benefits of a second mortgage?

    A second mortgage is a great way to get access to a large amount of cash quickly. If you have outstanding bills coming due, need to renovate your home, or even stop a power of sale, then a second mortgage can help you fund any of these.

  • Is it Easy to Get a Second Mortgage?

    Obtaining a second mortgage can be relatively easy if certain criteria are met. Private or alternative lenders, who are less concerned about credit ratings, typically provide second mortgages. Factors such as financial status and property value are considered. Private lenders usually require no more than 80 percent of the property's value to be covered by the existing mortgage. A down payment of at least 20 percent is necessary to qualify for a second mortgage. Additionally, market value and financial stability play a crucial role. Collaboration with an independent mortgage broker can facilitate finding a suitable lender for your needs.

  • How Can You Use Funds from a Second Mortgage?

    After obtaining approval for a second mortgage, you have the flexibility to utilise the funds according to your needs. Possibilities include investing in a business venture, financing home renovations, covering significant education expenses, funding a dream wedding or vacation, consolidating debt, and pursuing various other financial goals. The choice of how to allocate the funds is entirely up to you.

  • What is the Maximum Second Mortgage Credit Limit?

    The maximum credit limit for a second mortgage depends on the lender's terms and the amount of equity in your home. Typically, banks require a minimum of 25% equity, while trust companies may approve loans with as little as 10-15% equity. The loan amount can be up to 80% of your home's appraised value after deducting the balance of your first mortgage. Specific calculations will vary based on the lender's criteria and the equity available in your property.

  • Is It Possible to Apply for A Second Mortgage if I Have Bad Credit?

    Securing a second mortgage with bad credit is possible, but challenging. It can become a lengthy and potentially unsuccessful process if you approach lenders who have strict approval criteria due to the increased risk involved with second mortgages. It is advisable to explore alternative lenders or seek the assistance of a mortgage broker who can connect you with lenders who specialise in providing second mortgages to individuals with bad credit. These specialised lenders may have more flexible options available to suit your circumstances.

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