Second Mortgage in Ontario

Second mortgages allow you to receive cash by accessing your home’s equity. They make sense if you are:

• Looking to access money in your home equity. Second mortgages convert equity to cash without touching the first mortgage.


• Avoid paying mortgage insurance for a home purchase. You need to provide a 10% down payment, allowing you to piggyback off of the first mortgage (more details below).


• Wish to borrow additional equity, then a cash-out refinance. Cash-out refinances allow owners to receive a new first mortgage for more than what is owed. Then, they use the difference for other expenses.

Second mortgages are helpful for:

• Paying Outstanding Bills/Debt Consolidation: Second mortgages consolidate several loans into manageable monthly payments. They save homeowners money on interest costs and allow them to catch up with outstanding payments.


• Quickly Obtaining Cash: There are situations where homeowners require immediate access to cash. Second mortgages are an easy way to get money during an emergency.

• Covering Home Renovations: Second mortgages can cover home improvements like finishing a backyard, adding an addition, or upgrading their kitchen or fittings.


• Buying Additional Property: People often consider buying property to supplement their income. Some people purchase property to flip (where owners can combine property costs with renovations) or buy rental property for residual income. It is often a wise investment, providing your rent covers payments.


• Preventing Power of Sale: Second mortgages avoid a power of sale should your home be up for foreclosure.


• Avoiding Private Mortgage Insurance (PMI): If an owner does not have the 20% necessary for a down payment, they must obtain a PMI. Sometimes, it makes more sense to take out a second mortgage loan at your time of purchase to receive the 20% payment. Many people avoid PMI by doing an 80-10-10/10-15-5 loan. It is when 80% is the home’s value, your 2nd mortgage is 10% or 15%, and your down payment is 5% or 10%.


• Covering Education Costs: Post-secondary education is expensive. Some people use second mortgages to cover tuition.

Our experts assist homeowners in reducing monthly payments by up to 50% with a second mortgage in Ontario.

HELOCs allow users to obtain money from a secured credit line based on their home’s equity. Borrowers can draw on the line anytime to cover an expense over an established time until repayment starts.

Unlike a home equity loan, interest rates are variable. HELOCs are considered secondary to primary mortgages on your property (second-lien position), so they have higher interest rates than a comparable first-lien mortgage.

Yet, HELOC rates are lower than interest on a credit card or unsecured credit. If you are looking to consolidate debt, you may save money.

HELOCs have a 10-15-year withdrawal period where borrowers only pay for interest. Repayment periods may last 20 years longer and require interest and monthly principal payments. It may take a more significant chunk out of your budget.

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 2nd mortgage is a great way to access money fast in Ontario. The experts at Canadalend.com work with many lenders who can not only get you approved quickly but also get you the best second mortgage 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 second home mortgage rates and conditions attached to that second mortgage loan will vary depending on the lender. For example, a credit score and income typically do not play an important role when qualifying for a 2nd mortgage unless dealing with an institutional lender.

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

How much depends on your house's equity. 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 loan is a great way to access money fast in Ontario. The experts at Canadalend.com work with many second mortgage lenders who can not only get you approved quickly but also get you the best second mortgage 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 second home mortgage 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 to a variety of second mortgage lenders in Ontario through many of our wide selections of lenders that do not require income or credit qualifications.