Toronto Second Mortgages

Enter the value of your existing property
Property Value
Enter the amount of your the mortgage
registered on the property.
Mortgage Amount
Total amount of mortgages that are registered
on the property.
Total Mortgages
Total loans registered on the property in
relation to the value of the property.
Loan-to-Value Ratio (LTV)
60 %
Total amount available as equity in the property.
Available Equity
Enter the amount that you need to
Loan Amount Needed
Enter the expected interest rate.
Interest Rate
Interest rate may vary depending on the Loan-to-Value (LTV) Ratio, your credit score and other factors. With Loan-to-Value ratios under 80%, your interest rate may be as low as 3.99%. However, with LTV's above 80%, private mortgage interest rate may be as high as 11.99%.
You can either make monthly interest payments
or you can roll the interest into the Private
Mortgage Amount upfront
Monthly Payments
Make Monthly Interest Payments
Interest is Pre-Paid / No Payments
Total amount of cash that you will receive
upon taking out a Private Mortgage
Cash You Receive
The amount that you would be charged as interest
monthly throughout the duration of the mortgage
Monthly Payments

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First Name
Last Name
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About Second Mortgages in Toronto

There are times in a homeowner's life when they will need access to a large sum of money in a timely fashion. If you're a homeowner in Toronto looking for a second mortgage, then it's important to do your research first to ensure you understand the benefits and risks, and so you are equipped to make a sound financial decision.
What is a second mortgage?
A second mortgage involves using the equity in your home to take out a large loan or line of credit. In most cases the longer you live in a home and pay off the original mortgage, the more the equity in your home grows. That equity, usually up to 80% of it, can be used by applying for and receiving a second mortgage. Lenders consider a loan less risky if there is collateral and your property becomes the collateral in this equation.
What are your options for second mortgages?
You have two main types of second mortgages to choose from. Your financial situation, as well as other factors, will dictate which type will best suit your needs.
Home equity lump-sum loan: A home equity loan involves the borrower receiving a one-time large loan to be used as they see fit. This type of second mortgage is typically given by a private mortgage lender, and carries a higher interest rate than a line of credit. Similar to your existing mortgage, payments are made monthly, and consist of a portion of the loan as well as interest charges.
Home equity line of credit (HELOC): A home equity line of credit is similar to a credit card where the borrower can withdraw from and repay the line of credit over and over again. But unlike a credit card, interest rates are much lower. The lender will set a maximum limit on the line of credit, and interest is only charged on money that's been withdrawn until it has been paid back in full.
How do you know if you're eligible to receive a second mortgage?
Potential lenders will look at a few factors and criteria to ensure you qualify for a second mortgage, including:
  • Equity - The more you have available, the better your chances of getting a second mortgage.
  • Income - You will have to prove that you are employed and bring in enough income to cover the loan.
  • Credit score - All lenders will want to take a look at your financial past.
  • Property - If you have other properties, lenders will want to know about it. Again, think collateral.
Benefits of having a second mortgage
Taking out a loan should never be taken lightly, but if you are need of a large sum of money quickly for any of these reasons, a second mortgage may help:
  • Debt consolidation
  • Paying off debts
  • Tuition or education costs
  • Purchasing a new vehicle
  • Wedding expenses
  • Potential investment opportunities
  • Home repair or renovations.
How do you get a second mortgage in Toronto?
If you're in Toronto and you're looking for a second mortgage, the best place to start would be with your bank or another major bank. But be aware that large financial institutions generally prefer to give out lines of credit to people with higher credit scores.
You can also go through a private mortgage lender. A mortgage lender or broker will typically give out home equity loans to people with good but not great credit scores, but they will charge a higher interest rate than larger banks.