Fast Approval!

Second Mortgage

A second mortgage is a type of secured loan that uses your home as collateral. It is versatile and can be in the form of a home equity loan, or a home equity line of credit (HELOC). The Mortgage rates for a second mortgage are higher than first mortgages because the risk for the lender is higher.

Common uses for a second mortgage include home renovation and repairs, debt consolidation, or funding other large projects. Qualifying factors that lenders look at include the amount of equity in your home, your credit score, and your income. The greater the equity in your property the greater the sum of money you can borrow.

Send Us A Message.

    Get the Lowest mortgage
    rates in 3 minutes.

    A bad credit mortgage is an option for people with a less than optimal credit score who are looking to finance their purchase of a home. A credit score is a number that gives lenders an idea of how safe or how risky it would be for them to provide their services to you. In Canada this number goes from 300 to 900, and the higher the number the better your credit score is. You build your credit score and your credit history over time by consistently and reliably paying off loans and debts, such as student loans, car loans, and credit cards. If your credit score is lower than what is ideally asked for you may still be eligible for a bad credit mortgage. A bad credit score typically indicates financial difficulties in the past, such as people who have experienced bankruptcy or have had difficulty paying back their loans. 
    Portrait of a couple with financial problems looking at document in financial adviser's office.
    Prime Lenders: A prime lender will have the strictest requirements for your bad credit mortgage but can generally offer the best mortgage rates. Prime lenders will include the traditional lenders you would first think of when applying for a mortgage such as the major banks. While they typically prefer applicants to have a high credit score you may be able to get a bad credit mortgage with them with a credit score as low as 600. Trust Companies and Bad Credit Lenders: Financial institutions that specialize in providing a bad credit mortgage will include trust companies and other institutions that work with people with a bad credit score or history. Typically a bad credit lender or trust company will work with people who have a credit score of 700 or lower, and may be able to provide you with a bad credit mortgage with a score as low as 550
    Private Lenders: A private lender can include a private company or an individual lender willing to provide a bad credit mortgage to someone who has a poor credit score or history. Some private lenders will only provide loans to finance the down payment of a mortgage. While their mortgage rates will be much higher than a prime lender or trust company, private lenders typically become an option to consider if your credit score is below 600.
    If you have a poor credit score and are thinking of applying for a bad credit mortgage there are some things to consider first. Lenders will look at many things during the application process but will typically focus on: Credit Score and Debt History: A credit score and your debt or credit history provide a quick snapshot of your risk profile for a lender. Your credit score will determine whether you are eligible for a regular mortgage or will have to finance your home purchase with a bad credit mortgage. Credit scores in Canada range from 300 to 900 with a higher score being better. If your score is lower than 700 or you have a history of missed payments you may have to opt for a bad credit mortgage. Income and Employment History: The primary concern for a lender is if you will be able to pay back the loan reliably over time. As such they will be looking at your income and employment history when you apply for a mortgage. If your credit is below ideal and you have a low income or an employment history that is difficult to verify then you may be required to apply for a bad credit mortgage. Property: Any time you apply for a mortgage the lender will want to look at the property. They will look at the state of the construction and required maintenance costs of the property, the area it is in, and if they consider it affordable for you. If you are applying for a bad credit mortgage the lender may be stricter with the type of property they are willing to finance. Down Payment: In Canada the minimum down payment on a property is 5% with that amount rising to 10% of a property that is valued over $500,000.
    Couple managing the debt

    Win A Free Mortgage Payment

    Register your mortgage renewal date with and you could WIN your first month’s mortgage payment upon renewal (see terms and conditions). When you register your renewal date with us, you are securing the lowest interest rate possible up to four months prior to your mortgage coming due. So, if rates go up prior to your mortgage renewing, you can still get the lower rate. If rates go down, you will still get the lower rate… it is a WIN WIN FOR YOU.

    Customer Support

    Got the question? our support team is available to talk with you.

    Apply Online

    To apply online, simply complete our application form and we will back to you as soon as possible.

    Download Form

    Simple download and complete the application form ans submit to our near branch office.

    Live questions

    We are online. Click on Live chat button to talk with the human right now.

    Tips for Getting a Second Mortgage

    Because the burden to prove eligibility is greater on self-employed individuals, it pays to be well prepared before applying for a loan. The following should be considered before going into apply for a Self-Employed Mortgage:

    What are Some of the Advantages of a Second Mortgage?

    Second mortgages have several advantages that can be to your benefit. They allow you to access significant sums of money, have favourable interest rates compared to unsecured loans, and can have some tax benefits.

    • Amount of money: Since a second mortgage is a secured loan you can have access to a larger sum when compared to unsecured loans. The greater the equity in your property the greater the sum of money you can borrow.
    • Lower interest rates: A secured loan is less risky than an unsecured loan which means that a second mortgage will typically have a much lower interest rate than an unsecured loan such as a credit card. This works to your advantage when consolidating debt as you can transfer high interest loans to a lower interest loan, saving you money over time.
    • Potential tax benefits: In certain situations, you may be able to get tax benefits for the interest portion of your mortgage.

    What Should I Be Aware of Before I Get a Second Mortgage?

    It is important to understand that a second mortgage is a loan and as such has some risks and factors to consider. When applying, you need to consider the loan costs, the interest payments, and the risk of foreclosure.

    • Closing and Associated Costs: When applying for a second mortgage there may be additional costs. There may be an appraisal of the property required. Lenders may have processing costs. Be sure to understand all the closing and associated costs when applying for a loan.
    • Interest Rate: When you borrow money for a loan you pay the lender interest. The mortgage rate for a second mortgage will be lower than an unsecured loan but typically will be higher than the interest rate of your primary mortgage.
    • Affordability: In the worst-case scenario where you are unable to continue making payments the lender will be able to take your home through foreclosure. Before you take a second mortgage it is necessary to consider your ability to make payments over the course of the loan.

    Get Approved.

    For Home Equity Loan Today.

    1st mortgages 2nd mortgages, Home Equity Lines of Credit, Purchases & Rescue Financing — We Will Help!

    Same day pre-approvals and quick closings!

    Commonly Asked Questions

    A second mortgage is a secured loan and lets you borrow against the value of your home, giving you access to significant sums of money. They have favourable interest rates compared to unsecured loans. Common uses include home renovation and debt consolidation. Lenders will look at your equity, your income, credit score, and your property.
    A second mortgage is a versatile and useful tool that can be beneficial, and may even save you money. They make good sense if you have equity and large expenses planned. Talking to an expert can help you better understand your context and situation.
    The amount you can borrow on a second mortgage will be determined by the existing equity in your property as well as additional factors such as income and credit score. The greater the equity in your property and the higher your credit score the more money you can borrow.
    When you take on an additional loan like a second mortgage that is reflected in your score. In the short term this could be a negative impact on your credit score, but if used to consolidate debt at a more manageable rate it can be beneficial over the long term.
    Since a second mortgage is a secured loan it will have a lower interest rate than unsecured loans like credit cards. This works to your advantage when consolidating debt as you can transfer high interest loans to a lower interest loan, saving you money in the long term.
    A second mortgage can be a lump sum or a line of credit. A home equity loan provides a lump sum of money and is paid back in installments. With a home equity line of credit, or HELOC, you can borrow as needed and pay back over time.

    Quick Application