Second Mortgage Calculator

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Enter the value of your existing property
Property Value
?
Enter the amount of your first mortgage
registered on the property.
First Mortgage
?
Total amount of mortgages that are registered
on the property.
Loan-to-Value Ratio (LTV)
60 %
?
Total amount avalaible as equity in the property.
Available Equity
$200,000
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Enter the amount that you would like to
btake out as a second mortgage.
Mortgage Amount Needed
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Amortization period is length of time that it would take
the mortgage holder to pay off the mortgage in full
Amortization Period
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Please select the province where you are planning
on taking out the mortgage, as mortgage rates can
vary in different provinces
Province
AlbertaBritish ColumbiaNew BrunswickNewfoundland and LabradorNova ScotiaOntarioPrince Edward IslandSaskatchewan
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Mortgage type specifies whether the interest
rate is variable or fixed
Mortgage Type
Fixed Rates
1 Year
3.24%
2 Year
2.74%
3 Year
2.79%
4 Year
2.94%
5 Year
2.49%
6 Year
5.44%
7 Year
2.99%
8 Year
6.60%
9 Year
6.60%
10 Year
2.99%
Variable Rates
3 Year
3.70%
5 Year
2.89%
Fixed Rates
1 Year
3.04%
2 Year
2.74%
3 Year
2.79%
4 Year
2.84%
5 Year
2.49%
6 Year
3.44%
7 Year
2.99%
8 Year
4.14%
9 Year
4.19%
10 Year
2.99%
Variable Rates
3 Year
3.95%
5 Year
2.89%
Fixed Rates
1 Year
3.29%
2 Year
2.74%
3 Year
2.79%
4 Year
2.94%
5 Year
2.49%
6 Year
5.44%
7 Year
2.99%
8 Year
6.60%
9 Year
6.60%
10 Year
2.99%
Variable Rates
3 Year
3.95%
5 Year
2.89%
Fixed Rates
1 Year
3.29%
2 Year
2.74%
3 Year
2.79%
4 Year
2.94%
5 Year
2.49%
6 Year
5.44%
7 Year
2.99%
8 Year
6.60%
9 Year
6.60%
10 Year
2.99%
Variable Rates
3 Year
3.95%
5 Year
2.89%
Fixed Rates
1 Year
3.29%
2 Year
2.74%
3 Year
2.79%
4 Year
2.94%
5 Year
2.49%
6 Year
5.44%
7 Year
2.99%
8 Year
6.60%
9 Year
6.60%
10 Year
2.99%
Variable Rates
3 Year
3.95%
5 Year
2.89%
Fixed Rates
1 Year
3.24%
2 Year
2.74%
3 Year
2.79%
4 Year
2.94%
5 Year
2.49%
6 Year
5.44%
7 Year
2.99%
8 Year
6.60%
9 Year
6.60%
10 Year
2.99%
Variable Rates
3 Year
2.89%
5 Year
2.89%
Fixed Rates
1 Year
3.29%
2 Year
2.74%
3 Year
2.79%
4 Year
2.94%
5 Year
2.49%
6 Year
5.44%
7 Year
2.99%
8 Year
6.60%
9 Year
6.60%
10 Year
2.99%
Variable Rates
3 Year
3.95%
5 Year
2.89%
Fixed Rates
1 Year
3.24%
2 Year
2.74%
3 Year
2.79%
4 Year
2.94%
5 Year
2.49%
6 Year
5.44%
7 Year
2.99%
8 Year
6.60%
9 Year
6.60%
10 Year
2.99%
Variable Rates
3 Year
3.95%
5 Year
2.89%
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Please select how often you would like
to make your mortgage payments.
Payment Frequency
?
Mortgage payment is the amount that you will be
required to pay based on your mortgage terms
Mortgage Payment

Contact Us

First Name
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OR CALL
1.877.896.6727

Second Mortgages In Canada

What Are Second Mortgages Exactly?
A second mortgage is an additional mortgage loan that you may be able to take on by using your home and its grown equity as the collateral. Any lender (private or traditional) are a bit leery of approving second mortgages for the sole fact that the first mortgage loan takes first place for repayment if the homeowner defaults on the original mortgage. A second mortgage is considered when there is equity built up in the home, in other words, if there is enough equity available, a lender may offer a HELOC (Home Equity Line of Credit) or a second mortgage loan.
Homeowners often use a second mortgage to alleviate small debts, perform repairs or renovations to the home or execute some home décor improvements. On a second mortgage, the home & property are the collateral against the secondary loan (this kind of loan usually comes with a lower interest rate attached to it). Another option for homeowners when taking out a second mortgage is the opportunity to make ‘interest only’ payments, which keeps the monthly payment amount lower (this is especially enticing to owners that are nearing renewal or performing renovations for a future resell).
Grown Equity Equals Borrowable Results!
The longer you make your monthly payments on your first mortgage, the more equity you will grow in the home, which equals a small side investment that you can borrow a percentage of. No lender is going to loan you precisely the dollar-for-dollar amount of your equity, but if you have grown equity over a period of years, then your borrowable equity percentage will be higher. You may be wondering what you can use the second mortgage money for…the rule of thumb is for ANYTHING. You can follow through with a debt consolidation, pay for furthering education, purchase a vehicle, use it as a down payment on another home/property, or just about any other purpose.
When you have equity in your home, you have access to funds that normally would not be there, so consider your equity a purposeful side investment that you can draw on with the right lender. You do not have to stick with your first mortgage lender, for you can easily shop around to see which lender will offer you the best interest rate, although second mortgage loans tend to have a higher interest rate because the lender is taking more risk.
Managing Your Mortgages!
Let’s look at the facts that swirl around all types of mortgages. You are doing your research and due diligence to see if you qualify for a mortgage with lenders that differ in their mortgage offerings. You may have already discovered that there is a very long list of mortgage types, the various tools that you can use privately to help you gain a deeper perspective of the mortgage market, and different types of lenders. A first mortgage is the harder one to gain preapproval for, whereas a second mortgage is easier but costs more, even though you are borrowing against your own equity. The top three mortgage types are an adjustable rate mortgage, a fixed rate mortgage, and a variable rate mortgage, each offering pros and cons.
There are major banks & credit unions that work with mortgage products, but there are also private mortgage lenders like mortgage companies. Traditional banking institutions have stricter criteria, but lower interest rates and private lenders are more lenient with criteria but impose higher interest rates and shorter terms. With the juggling act of carrying a first and second mortgage, you should be confident that you can afford to take on that much debt each month (any default in payments will result in the lender(s) of both mortgages taking the home from you and settling up the balance of the mortgages through a resale of the home).
Mortgage Basics Explained
Mortgage
A loan that is derived from a specific mortgage type obtainable from a lender.
Mortgage Term
The length of time that the interest rate is set or fixed; the end of this term is when the mortgagee can renegotiate a new mortgage or pay the balance of the mortgage in full.
Mortgage Rate
The percentage of interest that a lender imposes onto the principal amount of the mortgage loan.
Mortgage Balance
During the life of a mortgage, the balance that is owing is the mortgage balance (the remaining sum of the accrued interest and the principal amount).
Mortgage Insurance
This is a specific type of insurance which protects the lender in the event you should default on your mortgage for any reason (typically mortgage insurance is required if a borrower is deemed a higher risk and is only offered a high ratio mortgage).
Amortization Schedule
The breakdown of the payments for your mortgage (how much you pay, how much of that goes towards the principal amount, how much goes towards the interest, and the balance remaining).
Amortization Period
The total number of months or years it will take for you to completely pay off your mortgage.
Closed Mortgage
When a mortgage is closed, this means that the mortgage rate and the mortgage contract are locked in and non-negotiable for a set amount of time.
Open Mortgage
With zero concerns of any penalties and being completely flexible with no set term, you can pay off your mortgage at any time with this type of mortgage.
Mortgage Refinancing
When a homeowner decides on switching to a new lender to arrange a new mortgage or to renegotiate an existing mortgage.
Mortgage Renewal
When the term of your mortgage comes to an end, you will have the option to discuss the possibility of a new mortgage, its terms, and its interest rate.
Prepayment
If you decide to pay off your mortgage prior to the end of the mortgage contract agreement, or you wish to drop a lump sum onto your mortgage, you would be making a prepayment.
Prepayment Privilege
There are mortgage ‘offers’ that are attractive because of the ability to either double up on payments, increase the percentage paid on monthly payments, or pay off a certain percentage of the principal annually (without any penalty).