Second Mortgages Across Canada
Second Mortgage In Canada: Access Your Equity Without Touching Your First Mortgage, Shopped Across 75+ Lenders
A second mortgage lets you borrow against your home's equity while leaving your existing first mortgage exactly as it is. Apply once and we shop our network of 75+ lenders to find the right second mortgage for you, with approvals in as little as 24 hours.
Get Started Call 1-877-812-7267
A second mortgage is a separate loan secured against your home and registered behind your existing first mortgage. Because it sits in second position rather than replacing your first mortgage, you can access your equity while keeping the rate and terms you already have in place. Second mortgages are often approved based largely on the equity in your home, which can mean more flexibility than unsecured borrowing.
75+
Lenders Shopped
15+
Years Of Experience
$500M+
In Funded Deals
80%
Responsible Combined Cap
Based on HomeEquityLoans.ca and Tango Financial brokerage experience. Approval times and available credit vary by lender and individual circumstances.
How A Second Mortgage Works
When you take a second mortgage, a new loan is registered against your home behind your existing first mortgage. The term second simply refers to its position. If the home were ever sold, the first mortgage is repaid first and the second mortgage is repaid after it. Your original mortgage stays untouched, which is the whole point: you get access to your equity without disturbing the rate and terms you already have.
A home equity loan is one common form of second mortgage, structured as a lump sum with fixed payments. A HELOC can also sit in second position. What unites them is that they all let you borrow against your equity while your first mortgage carries on as normal.
The most important decision is usually this: do you keep your first mortgage and add a second behind it, or do you replace your first mortgage entirely by refinancing? The panel below lays out that choice.
Second Mortgage
Keep Your First Mortgage
Your current first mortgage rate and terms stay exactly as they are.
No need to break your first mortgage early, so no prepayment penalty on it.
A separate loan sits behind your first, repaid on its own schedule.
Refinance
Replace Your First Mortgage
Your entire mortgage is rewritten at today's rates, for better or worse.
Breaking your first mortgage early may trigger a prepayment penalty.
You end up with one combined mortgage payment instead of two.
If you locked in a low first-mortgage rate, a second mortgage often makes more sense than refinancing, because refinancing would mean giving that rate up. For a neutral overview, the Government of Canada explains borrowing against home equity through the Financial Consumer Agency of Canada.
Second Mortgage vs. Refinance vs. Unsecured Loan
Three ways to raise funds, side by side, so you can see which fits your situation.
Cost of borrowing shown in general terms only. Your full annual percentage rate and Cost of Credit Disclosure are provided in writing before you commit.
Wondering If A Second Mortgage Fits Your Situation?
One application, 75+ lenders shopped on your behalf, and a clear answer with no obligation.
Start Your Application Call 1-877-812-7267Built To Protect You
How A Second Mortgage Stacks, And Why We Cap At 80 Percent
Your first mortgage sits in first position and your second mortgage sits behind it. We work within a maximum of 80 percent of your home's value across your combined first and second mortgage. That cap is deliberate. Keeping a meaningful cushion of equity protects you if property values shift and keeps you from becoming over-leveraged.
Example: Position And The 80% Combined Limit
Illustration only. Your actual room depends on your home's current value and the balance on your first mortgage. We cap combined borrowing at 80 percent of your home's value as a protection for you.
This is how we level with the homeowners we work with. The right second mortgage is the one that helps you reach your goal while keeping your financial position strong, not simply the largest loan available.
When A Second Mortgage Makes Sense
A second mortgage shines in specific situations. These are some of the most common reasons homeowners choose one over refinancing.
Keep A Low First-Mortgage Rate
Access equity without breaking a first mortgage you would rather not give up.
Approved Largely On Equity
Often more flexibility than unsecured borrowing if your credit or income is non-traditional.
Consolidate Higher-Interest Debt
Roll several costly balances into one secured payment without disturbing your first mortgage.
Second Mortgage Pros And Cons
A second mortgage is the right tool in many situations, but not every one. Here is an honest look at both sides.
The Advantages
You keep your existing first mortgage and its rate completely untouched.
No prepayment penalty on a first mortgage you are not breaking.
Often approved largely on equity, which can mean more flexibility than unsecured credit.
Access a meaningful amount for renovations, consolidation, or a one-time need.
Things To Consider
Because it sits in second position, the cost of borrowing is usually higher than a first mortgage.
You take on a second monthly payment alongside your existing mortgage.
Your home is the security, so payments need to fit comfortably in your budget.
If your first mortgage is near renewal, refinancing the whole thing may sometimes be cheaper overall.
Understanding The Costs Involved
Like any product secured against your home, setting up a second mortgage involves certain costs. We believe in full transparency, so you will always know what to expect before you commit to anything, with nothing buried in fine print.
Depending on your situation and the lender, the costs can include categories such as a property appraisal, legal fees, and lender or broker fees. The specific costs that apply depend on the details of your file and the lender we match you with. The Government of Canada's Financial Consumer Agency of Canada offers helpful background on borrowing against your home.
Before you move forward, you receive a full written Cost of Credit Disclosure that lays out every cost in plain terms, so you can decide with complete clarity. Our role is to make sure you understand exactly what you are agreeing to, with nothing left unexplained.
The Process
Getting Your Second Mortgage
Apply Or Call
Tell us your goal and how much equity you would like to access. One application is all it takes.
We Shop Your Options
We match your application across our network of 75+ lenders to find the right second mortgage for you.
Review Your Offer
We explain the terms and costs in plain language so you can move forward with confidence.
Get Approved
With approvals in as little as 24 hours, we keep the process moving from application toward funding.
If you are facing extreme hardship, such as a lien on your home, our sister brand TurnedAway.ca can help with Canada Revenue Agency debts and liens.
Second Mortgages In Action
Protecting A Low First-Mortgage Rate
An Oshawa homeowner needed roughly $65,000 for a renovation but had a first mortgage at a rate well below today's, and did not want to refinance and lose it.
Result: A second mortgage delivered the funds while the first mortgage stayed exactly as it was, avoiding a costly refinance.
Approved On Equity
A self-employed Whitby homeowner with strong equity but non-traditional income had been turned down for an unsecured loan and needed about $55,000.
Result: A second mortgage approved largely on the equity in the home provided the funds where unsecured lenders had said no.
Consolidating Into One Payment
A Clarington homeowner carried several high-interest balances and wanted to simplify without touching a first mortgage they were happy with.
Result: A second mortgage of roughly $48,000 cleared the high-interest balances and replaced them with one structured monthly payment.
Second Mortgages Across Canada
We help homeowners access their equity in provinces across the country. Wherever you are in our service area, one application puts our full lender network to work for you.
Second Mortgage Questions, Answered
What is a second mortgage?
A second mortgage is a separate loan secured against your home and registered behind your existing first mortgage. It lets you access your equity while keeping your first mortgage in place. If the home were ever sold, the first mortgage is repaid before the second.
How is a second mortgage different from refinancing?
A second mortgage sits behind your first and leaves it untouched. Refinancing replaces your first mortgage entirely with a new one. If you have a low first-mortgage rate you want to keep, a second mortgage avoids giving that rate up, and avoids any penalty for breaking your first mortgage early.
Is a home equity loan the same as a second mortgage?
A home equity loan is one common form of second mortgage, structured as a lump sum with fixed payments. The term second mortgage refers to the position behind your first mortgage, while home equity loan refers to how the funds are delivered. Many home equity loans are registered as second mortgages.
How much can I borrow with a second mortgage?
It depends on your home's value and the balance on your first mortgage. We work within a responsible maximum of 80 percent of your home's value across your combined first and second mortgage, which protects your long-term position. Because we shop 75+ lenders, we can match you with options suited to your goals.
Can I get a second mortgage with bad credit or non-traditional income?
Often there is more flexibility than with unsecured borrowing, because a second mortgage is secured against your home and is frequently approved largely on equity. For general guidance on borrowing responsibly, the Financial Consumer Agency of Canada offers helpful resources. Speak with an advisor about your specific situation.
Will a second mortgage affect my first mortgage?
No. A second mortgage sits behind your first and does not change its rate or terms. That is one of the main reasons homeowners choose it over refinancing.
What costs are involved in a second mortgage?
Costs can include categories such as a property appraisal, legal fees, and lender or broker fees, depending on your situation and lender. Before you commit, you receive a full written Cost of Credit Disclosure laying out every cost in plain terms, so there are no surprises.
Ready To Access Your Equity Without Touching Your First Mortgage?
Find out what a second mortgage could do for you. Apply once and we shop 75+ lenders to find your best fit, with approvals in as little as 24 hours. Start online or speak with an advisor today.
Get Started Call 1-877-812-7267