Equity Solutions
Access equity without disturbing your first mortgage, especially useful if breaking early would cost you a large penalty.
How It Works
A second mortgage is a separate loan secured against your home, registered behind your primary mortgage in priority. Because it's in second position, meaning the first mortgage lender is paid out first if there's a default, rates are higher than first mortgage rates.
Terms are typically short: one to three years. The goal is usually to use the funds for a specific purpose and then consolidate or refinance when your first mortgage comes up for renewal.
Second mortgages are available through B lenders and private lenders. If your first mortgage has a significant prepayment penalty, a second mortgage can be a cheaper alternative to refinancing.
Sits behind your primary mortgage. Repaid after the first mortgage in the event of default or sale.
Reflects the increased lender risk. Rates typically range from 7%–12%+ depending on the lender and your equity.
Short-term by design. Usually structured to tide you over until your first mortgage renews.
Common Uses
Roll high-interest credit card or consumer debt into a secured mortgage at a lower blended rate. Reduces monthly cash pressure while you work on the underlying debt.
Fund a renovation project without touching your first mortgage or using high-rate credit. The added value to the home often supports the cost of borrowing.
Cover the gap between closing on a new purchase and receiving proceeds from a sale. A second mortgage is sometimes structured as a short-term bridge when conventional bridge financing isn't available.
Get Started
Not sure if this applies to your situation? One call usually gives you a clear answer.
