How Can You Get A Second Mortgage?

A second mortgage is a popular way for homeowners to access the equity in their home in order to consolidate debt or pay for home renovations, amongst other things. With interest rates at near-record lows, it’s a great time to consider a second mortgage .

How Does a Second Mortgage Work?

A second mortgage is exactly what it sounds like—it’s an additional mortgage taken out against your home. A second mortgage doesn’t take the place of the first mortgage . In fact, you still make payments on your second mortgage while making payments on the original mortgage.Â

With a traditional second mortgage, you can borrow up to 85% of your property’s appraised value minus the amount you have left to pay on the first mortgage.1 That being said, a second mortgage differs from the first mortgage you took out on your home.

It’s called a second mortgage because it’s the second loan taken out against your home. If the loan goes into default, the original mortgage lender gets paid out before any additional money goes toward the second mortgage lender.

As a result, a second mortgage is seen as being riskier than a first mortgage. This is why the interest rate on a second mortgage is higher than the interest rate on the first mortgage.

But, with interest rates near record lows—and expected to stay low—and housing prices on the rise, it’s a great time to consider a second mortgage.

Why Get a 2nd Mortgage

A second mortgage can be a real financial lifesaver for those looking for additional funds. That’s because there are few restriction on how you can use the money you get from a second mortgage.

Some of the most popular reasons for taking out a second mortgage include:

  • Refinancing to consolidate high-interest debts
  • Paying for unexpected expenses
  • Increasing the value of the home through renovations
  • Investing in the stock market or mutual funds
  • Helping with children’s tuition
  • How You Can Get a Second Mortgage

If you’ve built up some equity in your home, a second mortgage is a fairly easy way to get money. For the most part, it’s also pretty easy to find a lender willing to give you a second mortgage.

For borrowers, the qualifications for getting a second mortgage are not as stringent as for a first mortgage. Because you already own a home, 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 may not be as important when qualifying for a second mortgage, but a better credit score and income could mean lower interest rates.

That’s why it’s important to do a lot of research before deciding on what lender to use. Or better yet, let the independent, licensed agents at do the leg work for you. Helping Torontonians Find the Best Second Mortgage

When it comes to finding the best second mortgage rates and terms in Ontario , more people turn to Because the licensed agents at are independent, they work for you.

Canada’s big banks and lenders only promote their own financial products, regardless of whether they suit your needs. has access to hundreds of lenders, plus the agents at will go over all options to help you make the most informed decision possible.

If you’re a property owner in Ontario and are looking for a second mortgage, contact the second mortgage experts at today. Or, you can apply online and one of our lending specialists will help you set up an appointment for a free, personal consultation at your earliest convenience.


1. “Borrowing on home equity,” Government of Canada web site, last accessed January 29, 2016;

Bob Aggarwal

Mr. Aggarwal was one of the original founders of, one of the largest volume Mortgage Brokerage houses in Canada. Mr. Aggarwal has over 12 years of experience in Brokerage and Lending in the small and medium business sector, as well as experience and expertise in the residential housing market. Since the inception of, Mr. Aggarwal has been instrumental in developing the operating platforms, and policies and procedures which have guided the organization to date.


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