SECOND MORTGAGES

We provide second mortgages secured to residential, commercial, and rural real estate across Canada.

WHAT IS A SECOND MORTGAGE

A second mortgage is a loan that occupies the second position against a property. Commonly, a second mortgage is provided to purchase, refinance, or access equity in a property.

Financial institutions have strict lending criteria and it can often be difficult to obtain a second mortgage. In contrast, private lenders are less stringent and use common sense underwriting. Private lenders are focused on equity, rather than income or credit.

A second mortgage is provided based on a percentage of the equity in a property. The more equity you have, the larger a second mortgage you can likely obtain.

A second mortgage does not mean that it is your second time taking out a mortgage. Additionally, it does not mean that it is the second, second mortgage on a property. Over several years, a single property could be refinanced numerous times with a new second mortgage. This information is recorded on the land title or deed and is public information. Most of the world uses the Torrens System for recording all interests and information.

It is possible to have a first mortgage and second mortgage at the same time. You can even have a third mortgage, fourth mortgage, and subsequent mortgages or loans on a property. However, it is rare that a property has more than a second mortgage. Second mortgages typically have higher interest rates and fees than first mortgages. You do not need to pay off your first mortgage to obtain a new second mortgage. However, there may be challenges with obtaining a second mortgage if you have a line of credit or collateral first mortgage.

The reason for getting a second mortgage is because most property owners already have an existing first mortgage with a low rate. Therefore, it is more financially feasible to obtain a smaller second mortgage than refinance the whole property.

The second mortgage has second priority. Priority is assigned based on the date and time of registration. Imagine three people arrive to stand in a line. Once the first person leaves (gets paid out to leave the line), the second person moves up in the line and becomes the first. The third person becomes the second and there is no third person in line anymore. The only way to get into this line is to go to the back. Alternatively, you need to be granted written permission from each of the people in front of you to postpone their position in line. However, you could also pay off the first and second person in line and you would become the first and only person in line.

HOW TO QUALIFY FOR A SECOND MORTGAGE

To qualify for a second mortgage, you must have sufficient equity or down payment.

We are an equity-based lender. Regardless of income or credit, if there is sufficient equity, you are approved.

GET A SECOND MORTGAGE

Visit our Loan Products page to learn more about what we have to offer.

View our Guidelines and Lending Areas to get started.

Find out if we can help by requesting a Free Consultation or Apply Online.

Interested in getting a second mortgage? Contact us to get started.


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