A second mortgage in Ontario can be a smart financial tool, if you use it strategically. Whether you’re consolidating debt, funding renovations, or covering urgent expenses, a second mortgage can help you access your home’s equity without touching your first mortgage.
What Is a Second Mortgage?
A second mortgage is a loan secured against your home that sits behind your first mortgage in priority. It doesn’t replace your existing mortgage, it works alongside it.
Example:
- Home value: $800,000
- First mortgage balance: $400,000
Possible second mortgage: Up to 80–85% of the home’s value, minus the first mortgage balance
When a Second Mortgage Makes Sense
A second mortgage can be the right move if you:
- Need funds quickly but don’t want to break your first mortgage
- Want to consolidate high-interest debts into one lower payment
- Are planning major renovations that will increase property value
- Need to pay off tax arrears or stop legal action like a Notice of Sale
- Have credit challenges and don’t qualify for a bank refinance
Benefits of a Second Mortgage in Ontario
- Fast Access to Funds – Many approvals within 48 hours
- Flexible Approval Criteria – Focus on equity and property value, not just credit score
- Lower Monthly Payments – Especially if consolidating debt
- No Disruption to First Mortgage – Keep your existing rate and term
How to Qualify for a Second Mortgage
Most alternative lenders look for:
- At least 20% equity in your home
- Proof of income (even if self-employed)
- A property in a marketable Ontario location
- Clear repayment plan
Real Ontario Success Story
Janet from Kingston had $50,000 in high-interest debt and an upcoming home renovation. Instead of refinancing her low-rate first mortgage, she took a $90,000 second mortgage, paying off her debt and funding the renovation. Her monthly payments dropped by $700.
Risks to Consider
While second mortgages can be helpful, they are secured against your home. If payments aren’t made, lenders can take legal action. Always work with a licensed mortgage broker to ensure the loan fits your financial plan.
Final Tip: A second mortgage in Ontario can be the bridge to financial stability or property improvement, just make sure you get the right terms from the right lender.
Need fast funding without touching your first mortgage? Let’s talk about your second mortgage options in Ontario.
📞 1-866-702-9394
🌐 www.burkefinancial.ca
