Mortgage Approval

Second Mortgages: How to Get Approved

A second mortgage is a way to borrow money by using your first mortgage as collateral. It is a proven and safe way to borrow, and you can potentially access more funds then you could with the average loan. The process tends to involve many of the same details and a similar understanding of a mortgage’s legal framework.


Equity is the value of a property minus all the debts associated with it. It’s essentially the amount you actually own. In addition, the equity a borrower has in their current property is the most important factor in being approved for a second mortgage.

Your equity can be calculated by following these two easy steps:

  • Locate the current market value of your property. Remember, the price you paid might not be the current value.
  • Subtract your mortgage balance from that amount.

Your lender essentially wants to know how much you would make if you hypothetically sold the property tomorrow. This number is essentially part of your assets and subtracted from your loan debts.

Property Value

The value of your property is an important factor because it will most likely be used to secure the loan. Since you already have a primary mortgage, there is an additional risk for the lender because they would be second in line to be repaid.

The Approval Process

Getting approved for a second mortgage is like the process you experienced the first time around. You need to meet with a financial institution or lender and fill out an application providing key financial information. Approvals are based on an applicant’s repayment history, overall credit standing and their current home equity.

Starting the Conversation

We recommend sitting down with a lender to discuss the process and to ask any questions you might have. They can also help determine if a second mortgage is the best strategy for your financial needs, or if there’s another option that makes more sense.

Contact us for more information on how to obtain a second mortgage or to set up an appointment where we would be happy to review your situation.

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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